Illegal immigrants will no longer be able to claim billions of dollars in tax credits under the Republicans’ tax overhaul plan. Currently, an estimated $23.1 billion a year flows to the families of illegal immigrants through the child tax credit, the American Opportunity Tax Credit and the Earned Income Tax Credit, according to The Washington Times.
One of the biggest points of contention in the debate over illegal immigration, according to Christian News Alert, has been the fact that many individuals who enter the country illegally are able to take advantage of taxpayer-funded benefits. As a matter of fact, it’s one of the reasons so many immigrants have come to the country illegally.
Up until now, illegals have been able to collect the child tax credit, the American Opportunity Tax Credit, and the Earned Income Tax Credit. Republicans have attempted to prevent this in the past, but were unsuccessful. Perhaps, with a Republican-dominated Congress, they can finally put an end to this.
Under the new program, taxpayers will be required to submit work-eligible Social Security numbers in order to take advantage of the tax credits. In many cases, illegal immigrants have used fake social security numbers in order to gain employment.
Of course, not everyone is happy about this. Immigrant-rights advocates have attacked this portion of the bill, stating that the children of illegal immigrants are U.S. citizens, which means they should be entitled to the credit. Of course, they say nothing of the fact that the parents should not have broken our laws in the first place.
According to The Washington Times, many illegals use Individual Taxpayer Identification Numbers (ITIN) to pay taxes. These numbers are given to individuals who are not authorized to work in the United States — but the government still wants them to pay taxes if they do so anyway.
According to the agency’s inspector general, the Internal Revenue Service (IRS) pays billions of dollars a year in tax credits to individuals filing with ITIN’s. He has repeatedly attempted to persuade the IRS to cease the payments, but the agency has not done so. They state that they believe the law covers illegal immigrants as it does other taxpayers.
The Trump administration has already made progress in limiting the flow of illegal immigrants into the United States. Earlier this year, the president announced that illegal immigration is down 61% — and this is without building the wall.
The reality is that Trump’s policies are reducing illegal immigration by discouraging people from entering the country illegally. His harsher stance on the issue have deterred many would-be illegal immigrants from attempting to gain entry into the country. After all, what’s the point of spending the money to come into the United States if there is a good chance of getting deported?
However, this move by Congress could address another important issue: removing incentives for those who might want to ignore our immigration laws. If the government makes it harder for immigrants to remain in the country illegally, more of them will be willing to follow the proper procedures.
As a candidate, President Donald trump criticized the tax credits flowing to illegal immigrants and vowed to stop the practice.
Legislation accomplish what is now part of the tax overhaul plan was proposed earlier this year by Rep. Patrick McHenry, who called his bill the “No Free Rides Act.”
“This is simply unacceptable. By introducing the No Free Rides Act we ensure these illegal immigrants will not receive any more benefits intended to help American families,” the North Carolina Republican said in a statement, according to The Hill.