Tax plan could hit immigrants

mangowarrior · 02-28-2014, 12:15 AM

http://www.politico.com/story/2014/0...059.html?hp=l4

Quote:

By SEUNG MIN KIM | 2/27/14 5:23 PM EST

Rep. Dave Camp’s tax reform plan takes aim at a popular tax break that’s become a point of tension in the immigration debate.

The House Ways and Means Committee chairman wants to crack down on requirements to receive the child tax credit – a refundable tax break that, due to quirks in the law, can be claimed by undocumented immigrants.

The committee says the provision is there to “reduce waste, fraud and abuse.” But immigration policy analysts say the change could bar children who are rightfully U.S. citizens from enjoying the perks of the tax credit.

“Effectively, this would allow the IRS to deny [additional child tax credit] benefits to households headed by unauthorized immigrant parents, regardless of the child’s citizenship status,” the Bipartisan Policy Center said Thursday.

Right now, adults have to submit a valid taxpayer identification number for their child to claim the tax credit, which can amount to $1,000 per child. Those are usually Social Security numbers, but undocumented immigrants and other people who are not eligible for them use what is called an individual taxpayer identification number when they file taxes.

To claim the refundable part of the tax credit, Camp wants to require the taxpayers to submit their Social Security numbers – which effectively shifts the burden of proving eligibility from the child to the adult.

This could affect millions of children who are U.S. citizens. According to a 2009 report from the Pew Hispanic Center, there were 5.5 million children of undocumented immigrants, and 73 percent of them were born in the United States, making them U.S. citizens.

Democrats were quick to criticize the provision in Camp’s proposal.

“Tax reform should be about making the tax code simpler and fairer and it should help reduce the deficit. I’m trying to read through this 979-page bill to see if it meets that test,” said House Democratic Caucus Chairman Xavier Becerra of California. “But it’s hard to believe that to make the tax system simpler and fairer it has to step on immigrant families and their children to get there.”

Camp’s plan expands the child tax credit to $1,500.

The controversy over undocumented immigrants and the popular tax credit has flared in recent weeks on the other end of the Capitol, as Senate Republicans repeatedly tried to use a similar change to pay for various policy proposals.

It was first put forward as a way to pay for an extension of unemployment benefits. Later, Senate Republicans, led by New Hampshire Sen. Kelly Ayotte, tried to use it as a way to offset the cost of repealing a $7 billion cut in cost-of-living adjustments to military pensions.

Ayotte, who voted for the Senate’s comprehensive immigration reform bill last summer, has since come under fire from immigrant-rights advocates for pushing the change. She had initially called for requiring adults to have Social Security numbers to claim the credit – much like Camp’s plan – but later changed her plan so children who are claimed would be required to have a Social Security number.

Billions of dollars through the child tax credit, which is refundable, have gone to people not authorized to work in the United States. In 2010, $4.2 billion was paid out to such unauthorized workers, according to the Treasury Inspector General for Tax Administration.

“The payment of federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside and work in the United States without authorization, which contradicts federal law and policy to remove such incentives,” TIGTA said in its report.

And they wonder why a large portion of the minorities in this country votes for the Democratics...

Pianoswithoutfaith · 02-28-2014, 12:18 AM

This has to be a joke

mangowarrior · 02-28-2014, 12:35 AM

Quote:

Originally Posted by Pianoswithoutfaith

This has to be a joke

It will probably go down in defeat because this is just a small part of his Tax Reform Bill. One other provision of the bill includes large banks having to pay more in taxes which threatens the bottom line of some major private equity players which of course are the ones who really controls the US Government.

http://www.politico.com/story/2014/0...065.html?hp=t1

Malign0n · 02-28-2014, 12:56 AM

Which is why I'll never vote for a Republican

Sorrybrah · 02-28-2014, 01:18 AM

They target those who need a tax break yet turn a blind eye on their billionaire election sponsors.

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Tax plan could hit immigrants