Saturday, December 20, 2014

Obama Opens Fraud-Ridden Benefits Programs To Illegal Immigrants

President Obama’s unilateral executive action on immigration will make hundreds of thousands, perhaps more than a million, illegal immigrants eligible for federal transfer payments. That will be done primarily through two widely used programs — the Earned Income Tax Credit, or EITC, and the Additional Child Tax Credit, or ACTC.
As it turns out, those two programs are already among the most corrupt and fraud-ridden in the entire federal government. A newly released report from the inspector general of the Internal Revenue Service confirms that the EITC is plagued by fraud (which was already well known) and also reveals for the first time that the ACTC is even worse.
The two programs, intended for low-income workers, provide what is known as refundable tax credits. That means they give workers a tax refund that is larger than their tax liability. So a family with a tax bill of $1,000 might receive an EITC “refund” of $5,000, meaning the family doesn’t write a check to the government but rather receives a check from the government. The ACTC works similarly for low-income workers with children.
Supported by both political parties over the years, the programs were intended to encourage work and strengthen families. Their growth has been extraordinary in recent years — payments increased 40 percent from 2007 to 2012 alone. And now both are beset by staggering levels of fraud.
According to the inspector general, the IRS paid out $63 billion in EITC benefits in 2013. Of that, 24 percent, or about $15 billion, was given improperly to people not qualified to receive it. That improper payment rate has been enough to qualify the EITC as a “high risk” program for years.
The IRS paid out $26.6 billion in ACTC credits in 2013. The inspector general reports the child credit improper payment rate for that year was somewhere between 25.2 percent and 30.5 percent — worse than the EITC.
Read the rest of the story HERE.

If you like what you see, please "Like" us on Facebook either here or here. Please follow us on Twitter here.


No comments: