States News Service
April 19, 2012 Thursday


The following information was released by the office of Texas Rep. Kevin Brady:

A proposal to shut down a tax loophole that allows illegal immigrants to fraudulently collect billions of dollars in government checks passed out of the U.S. House Committee on Ways and Means by a 22-12 party line vote. Committee Republicans proposed and supported the measure.

The bill stops illegal immigrants and others from obtaining child tax refunds through the IRS by requiring they provide a valid Social Security number on forms in the future. Currently the law only requires a taxpayer identification number for the refundable credit which can be obtained without proof of legal residence in the U.S.

This is long overdue. Why are hardworking Americans sending their taxes to Washington to have them lost to fraud and abuse in the tax system? asked U.S. Congressman Kevin Brady, a senior member of the committee. By closing this loophole, the IRS will be able to immediately deny tax refunds when proper Social Security numbers are missing. And that means your taxes wont go to those who are in America illegally.

Democrats on the committee unanimously objected to closing the loophole, but Brady and other members pointed out that a similar refundable credit in the tax code the earned income tax credit already requires a valid Social Security number.

Is Congress going to get serious about ending fraud or not? asks Brady.

According to the Joint Committee on Taxation, this reform will save taxpayers $7.6 billion over ten years. The legislation is championed by Rep. Sam Johnson (R-TX). The House Ways and Means Committee identified $68 billion in cuts to wasteful spending as its share of the Houses effort to trim $261 billion over the next few years. The Senate has not proposed or passed a budget in the last three years.

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