Another year, another $4+ billion to illegal immigrants

[rudder]

So the IRS is paying more out to illegal immigrants than the amount of tax revenue it takes in. This was reported last tax season as a big problem, but yet here we are again. Illegals are fraudulently filing for child earned income tax credit. This is an entitlement meant for people with children living at home. So illegal laborers have figured out that if you list dependents living in Mexico, you get mucho dinero. Not just dependents, but nieces and nephews as well.

They just need an ITIN number, an mailing address and then the money rolls in. ITIN applications have been increasing the last couple of years as this problem grows.

http://www.wbiw.com/state/archives/2012/04/illegal_immigrants_getting_big.php

(article disclaimer: the numbers in the article do not jive with this: http://www.taxpolicycenter.org/taxfacts/Content/PDF/historical_eitc_parameters.pdf, but still $5,891 max benefit is still a lot of $$$ plus spouses file separate returns claiming the same children).

EITC payments increased 4.5% from 2010 to 2011 ($62.5 billion total in 2011).

The GAO lists the EITC program as having the second highest amount of improper payouts of all Federal programs.

Maybe Stephen King could just get a list of all illegal filers and he can send a check straight to them.

 

[nehalem256]

Yet another reason to end the EITC.

Although it seems that it would be easy to prevent this type of fraud by just restricting the EITC to those with SSNs.

 

[momeNt]

It's essentially stimulus to the agricultural community. They get 4+ billion of taxpayer money for employee benefits.

 

[rudder]

Yet another reason to end the EITC.

Although it seems that it would be easy to prevent this type of fraud by just restricting the EITC to those with SSNs.

The IRS probably still wouldn't check the validity of SSN numbers. As long as you don't use the same one twice.

 

[Texashiker]

Why is the government paying illegal immigrants?

No wonder the US is going broke.

 

[soulcougher73]

Why is the government paying illegal immigrants?

No wonder the US is going broke.

This. This country is so fucking backwards it makes my head spin at times. So cant wait for the day i have enough money to move away from this fucked up country.

 

[EagleKeeper]

The IRS probably still wouldn't check the validity of SSN numbers. As long as you don't use the same one twice.

For electronic filing the name must match the SSN otherwise it gets rejected.

For paper filing, they cross reference by hand 2-3 years later; then send a letter asking for an explanation for parties with SS mismatches or multiple claiming.

 

[WackyDan]

Why is the government paying illegal immigrants?

No wonder the US is going broke.

It isn't only that....

Children born to illegals automatically receive medicaid. Their births are paid for by Medicaid and their medical up until they are 18 or older depending on their stature in society by then. This is because their parents - here illegally can only be listed as legal guardians.

They can also receive in their legal guardian's name.. Food Stamp benefits and other various forms of public assistance. SO... while it is true that most illegals do not receive welfare or public assistance, they do in the name of their now legal citizen children.

Now... add to that the cost of educating the illegal and legal children and the costs grow even more... In many areas that cost is partially attributable to these children having little to no conversational or reading ability with the English language because all they've ever used was spanish in their households and Hispanic centric communities.

NOBODY... NOBODY has done a neutral study of the costs versus benefit of illegals. I'm willing to bet there are benefits to having them here but that the costs far out weigh the benefits. Especially when many of the benefits are somewhat questionable as to who they favor.

 

[Infohawk]

while it is true that most illegals do not receive welfare or public assistance, they do in the name of their now legal citizen children.

Yes. The biggest cost associated with illegal immigration is never recognized by pro-immigration people. Illegals have legal children who cost $7000+ a year to educate, not to mention costs associated with healthcare and infrastructure. The vast majority of illegals never make enough money to pay enough in state or federal taxes to makeup for the costs of their children to the general public.

 

[BoberFett]

Yes. The biggest cost associated with illegal immigration is never recognized by pro-immigration people. Illegals have legal children who cost $7000+ a year to educate, not to mention costs associated with healthcare and infrastructure. The vast majority of illegals never make enough money to pay enough in state or federal taxes to makeup for the costs of their children to the general public.

That's true of anyone below the median income level. The average citizen receives more from goverment services than they'll ever pay in. That's the whole point of a progressive income tax.

The real problem with illegals is the driving down of wages.

 

[woolfe9999]

Why is the government paying illegal immigrants?

No wonder the US is going broke.

It isn't paying them intentionally. The ones it is paying are committing tax fraud. Why does anyone get away with tax fraud? Because no system will ever prevent 100% of it.

Why is 20 times this much revenue lost due to wealthy people evading taxes?

No wonder the US is going broke.

 

[Infohawk]

That's true of anyone below the median income level. The average citizen receives more from goverment services than they'll ever pay in. That's the whole point of a progressive income tax.

The real problem with illegals is the driving down of wages.

Progressive programs only work if there's enough balance in the system. When we continually add people to the lower part of the income spectrum and then give them first-world benefits, the problems start. You need a first world tax base to support first world public services. Illegal immigration and even excessive legal immigration from certain regions like Central America add strain to the system.

 

[Sunburn74]

It isn't only that....

They can also receive in their legal guardian's name.. Food Stamp benefits and other various forms of public assistance. SO... while it is true that most illegals do not receive welfare or public assistance, they do in the name of their now legal citizen children.

To address this, wouldn't you need constitutional change as to who exactly are legal US citizens?

 

[piasabird]

That dont even count the money they get from the chip program or when they show up at an emergency room for free treatment.

 

[piasabird]

You could just rewrite the the IRS tax law requiring the parent to be citizens to get the credit. Make them send proof in for every instance.

 

[piasabird]

There are plenty of problems with the Federal government this is just one loophole.

 

[piasabird]

They could just call this the government whore house credit.

 

[nehalem256]

To address this, wouldn't you need constitutional change as to who exactly are legal US citizens?

Probably. Although maybe you could argue that an illegal alien is basically a foreign invader and therefore their exists a bubble around them that is basically therefore temporary Mexican territory. Which would result in the child being born in Mexico not the US.

 

[Jaskalas]

Yes, this country gives money to poor people.

No, our government does not care who they are.

Given that the two are common knowledge, and 1+1=2, what's the news? That our government does not represent us in its assault against its own sovereignty? Yeah... no kidding.

That's why you need to greatly oppose any and all federalism.

 

[woolfe9999]

You guys act like this is a government policy, when in fact what these people are doing is against government policy. They are, in fact, breaking the law, just like citizens who evade taxes and defraud the government are. It isn't a "special" outrage just because they happen to also be illegal immigrants. Sure we shouldn't be paying these people. We shouldn't be paying anyone who applies for benefits on false pretenses, and we shouldn't be allowing millionaires to evade paying the taxes that everyone else has to pay either.

 

[boomerang]

You guys act like this is a government policy, when in fact what these people are doing is against government policy. They are, in fact, breaking the law, just like citizens who evade taxes and defraud the government are. It isn't a "special" outrage just because they happen to also be illegal immigrants. Sure we shouldn't be paying these people. We shouldn't be paying anyone who applies for benefits on false pretenses, and we shouldn't be allowing millionaires to evade paying the taxes that everyone else has to pay either.

You're not wrong.

But your attitude is the same one that is guiding our elected officials. It's why nothing gets done. Why crack down on this when that is happening type of attitude. Pet projects, pet peeves, graft, corruption and this type of thinking and we're all screwed.

soulcougher is not wrong either. There may very well come a day when it makes little to no sense to stay here.

 

[ElFenix]

so when can we expect a vote to increase the number of IRS agents/auditors/whatnot to crack down on this sort of thing (and other tax fraud)

bueller? bueller?

 

[woolfe9999]

You're not wrong.

But your attitude is the same one that is guiding our elected officials. It's why nothing gets done. Why crack down on this when that is happening type of attitude. Pet projects, pet peeves, graft, corruption and this type of thinking and we're all screwed.

soulcougher is not wrong either. There may very well come a day when it makes little to no sense to stay here.

But that isn't my attitude at all. I think the IRS is under-funded, and the GOP is the party in favor of under-funding it. It's really not that complicated an issue - in order for the IRS to catch tax cheats of all stripes, be they illegals or millionaires, it must have the resources to do so. I think it's a problem to complain about funding to the IRS, and take action in Congress to cut said funding, then complain that illegal immigrants are able to commit tax fraud. Newsflash: lots of people are going to commit tax fraud if they are able to get away with it, regardless of their immigration status. We can either make a serious effort to enforce our laws, or not.

- wolf

 

[WackyDan]

It isn't paying them intentionally. The ones it is paying are committing tax fraud. Why does anyone get away with tax fraud? Because no system will ever prevent 100% of it.

Why is 20 times this much revenue lost due to wealthy people evading taxes?

No wonder the US is going broke.

This $4 billion is readily resolvable by a number of things... like securing the southern border. So thank you for missing the point.

 

[WackyDan]

To address this, wouldn't you need constitutional change as to who exactly are legal US citizens?

Yes... BUT

You can also address this by securing the border, having harsh penalties for those who employ illegals, and increased deportation.