Weekly Report: Protecting Hard Working Taxpayers

Statement

As Iowans know, President Obama has acted unilaterally to create his own set of immigrations laws -- creating a pathway for 5 million illegal immigrants to remain in the country and work. Regardless of your position on how to fix our broken immigration laws, the president"s executive overreach violates the balance of powers designated in the Constitution which give Congress the authority to make our immigration laws. Unfortunately, the problems do not end with the unconstitutionality of President Obama's actions on immigration. They will directly impact your hard-earned tax dollar as well.

In an attempt to hold the Obama administration accountable, Senator Chuck Grassley recently asked the IRS Commissioner John Koskinen the tax implications of the President's immigration actions -- specifically if those granted amnesty would be eligible for the Earned Income Tax Credit. Koskinen confirmed that the IRS has determined these individuals would be eligible for the Earned Income Tax Credit payments, even for years they did not file tax returns.

What does this mean? Individuals who are in the country illegally are eligible to claim this generous credit for previous tax years -- three to be exact -- for time they were working illegally in the United States without proper tax records. The average credit in 2012 was just over $2,300 and the maximum credit in 2014 was $6,143. Those receiving amnesty would be able to claim three years of credits and receive the entire amount in one lump sum from the U.S. Treasury. The Earned Income Tax Credit is already a program rife with abuse and improper payments. It's too early to know exactly how much more President Obama's immigration orders will cost it, but the low-end estimates are at least $1.7 billion.

Despite clear objections from the American people, the Congress, and a federal court ruling in Texas, the President refuses to reverse course on his unconstitutional executive amnesty. The Earned Income Tax Credit is a helpful and important credit intended to assist Americans who are working but still struggling to get by -- not give billions in taxpayer dollars to those who came here to work illegally without paying taxes.

With more and more Americans living paycheck to paycheck and median income down, I cannot stand by while President Obama and the IRS give away your hard earned money to those who have broken our laws. I am proud to join my colleague, Senator Grassley, who is leading the effort in the Senate, to introduce legislation in the House of Representatives. This legislation will change the eligibility qualifications for the Earned Income Tax Credit to protect taxpayer dollars from this abuse.

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