Young’s legislation shuts down amnesty tax bonus loophole

Congressman David Young -- CROPPEDFrom Press Release


Last Friday, U.S. Congressman David Young introduced legislation that would respect the rule of law and hardworking taxpayers by protecting the earned income tax credit (EITC) from exploitation from a tax bonus loophole created by President Obama’s recent executive amnesty actions.

“The earned income tax credit is a helpful and important tax credit intended to assist Americans who are working, but still struggling to get by. President Obama’s illegal executive actions on immigration paved the way for the tax credit to be flat out abused. My bill would provide clarity and enforcement mechanisms to clearly determine eligibility, and give federal agencies the tools to prevent payments claimed illegally.”

Under Congressman Young’s legislation, H.R. 2389, a tax filer claiming EITC must be authorized to work legally in the United States and eligible for the credit for the specific year it is claimed. Along with updating the tax code, this legislation also looks to connect those claiming EITC with those who have received a Social Security Number (SSN) via the President’s executive amnesty.

Currently the Internal Revenue Service (IRS) has no way to know whether the person claiming EITC has received executive amnesty. H.R. 2389 would focus on that connection – requiring the Department of Homeland Security and the Social Security Administration to work with the IRS to determine who is not eligible for EITC. The goal: prevent executive amnesty recipients from abusing EITC by claiming it for previous years; this would save the hardworking taxpayer, according to the Joint Committee on Taxation, at least $1.7 billion.

Read the full legislation here.