How Much Does It Cost?

The following chart was posted at The Washington Examiner today:

Although I object to the word ‘native’ being used in this context, the chart shows that a large portion of our tax money is going to people who are not American citizens. The real problem with this is that veterans and other Americans are not getting the services they need because money is limited and our national debt is skyrocketing. Supporting people who are here illegally is simply a luxury we can no longer afford.

The article further states:

  • In 2014, 63 percent of households headed by a non-citizen reported that they used at least one welfare program, compared to 35 percent of native-headed households.
  • Welfare use drops to 58 percent for non-citizen households and 30 percent for native households if cash payments from the Earned Income Tax Credit are not counted as welfare. EITC recipients pay no federal income tax. Like other welfare, the EITC is a means-tested, anti-poverty program, but unlike other programs one has to work to receive it.
  • Compared to native households, non-citizen households have much higher use of food programs (45 percent vs. 21 percent for natives) and Medicaid (50 percent vs. 23 percent for natives).
  • Including the EITC, 31 percent of non-citizen-headed households receive cash welfare, compared to 19 percent of native households. If the EITC is not included, then cash receipt by non-citizen households is slightly lower than natives (6 percent vs. 8 percent).
  • While most new legal immigrants (green card holders) are barred from most welfare programs, as are illegal immigrants and temporary visitors, these provisions have only a modest impact on non-citizen household use rates because: 1) most legal immigrants have been in the country long enough to qualify; 2) the bar does not apply to all programs, nor does it always apply to non-citizen children; 3) some states provide welfare to new immigrants on their own; and, most importantly, 4) non-citizens (including illegal immigrants) can receive benefits on behalf of their U.S.-born children who are awarded U.S. citizenship and full welfare eligibility at birth.

I am reminded of the line from the movie “Men In Black,” “We’re not hosting an intergalactic kegger down here.” We can do everything we can to help people in poor countries, but we need to understand that until those countries have some form of economic freedom, our aid simply goes to the corrupt officials at the top. The answer to the number of illegals coming to America is for those illegals to gather together to fight the corrupt governments in their own countries. Based on the fact that the large majority of the people currently trying to break into America are military-age men, we need to ask them to go back home and work to fix things. We simply cannot afford to taken in everyone in the world who is looking for a better life. At some point you simply cannot put any more people on the bus.

Stuck On Stupid

Brietbart reported last week that one of the changes made in the tax bill when it went to the Senate was to continue to allow non-citizens to collect tax money from the government.

The article reports:

Rep. Luke Messer (R-IN) made sure that a fix to this long-standing discrepancy was included in the House version of the tax bill. When the bill came out of chairman Kevin Brady’s (R-TX) House Ways and Means Committee, it included the language Messer originally inserted, demanding a credit claimant include “the taxpayer’s Social Security number on the return of tax for such taxable year.” This language would have blocked illegal aliens, who lack real SSNs, from claiming the lucrative benefit.

Yet when the Senate marked up the bill, the language was tweaked to allow some illegals to continue to claim the benefit. The text of the version the Senate eventually passed reads, “No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and Social Security number of such qualifying child on the return of tax for the taxable year” (emphasis added).

The article explains:

The Personal Responsibility and Work Opportunity Act of 1996 (PRWOA) expressly provides that illegal aliens are “not eligible for any Federal public benefit.” But as Jan Ting of the Center for Immigration Studies (CIS) has explained at length, this benefit has continued to be available to illegals because the IRS has interpreted the ambiguity of the language of the current tax code to make no distinction between U.S. citizens and legal residents and claimants who have no right to be in the United States. A 2011 Treasury Inspector General for Tax Administration report suggests credits like these are putting billions of dollars in the hands of illegals. It was this situation that led to Messer and others attempting to fix the loophole.

CIS’s Ting, a law professor, sounded the alarm Monday that the Senate version had stepped drastically away from the House intent to keep the child tax credit from illegal aliens. Asked by Breitbart News if there was any plausible motive in the Senate’s change in language other than to benefit illegal aliens, Ting replied, “It’s a mystery to me. Why should we funnel taxpayer dollars to illegal aliens?”

Notably, even the Senate version’s language is an improvement to the existing law in keeping federal benefits from illegals. Under the altered version, at least illegal aliens with illegal alien children who are not covered by DACA will be unable to claim the child tax credit.

In 2015, I posted the following from the DC Clothesline:

Sen. Jeff Sessions proposed an amendment, which would prevent illegal aliens from receiving the Earned Income Tax Credit (EITC)  and child credit.

…In the last year with complete records, 2010, the amount of fraudulent payments hit 4.2 billion dollars and all tax credits combined cost about 7.6 billion last year.

Democrats who voted against the amendment were:  Bernie Sanders, Debbie Stabenow,  Sens. Patty Murray, Ron Wyden, Sheldon Whitehouse, Jeff Merkley, Mark Warner, Tammy Baldwin, Tim Kaine and Angus King.

…Debbie Stabenow, who is one of many democratic women with IQs in single digits said she doesn’t believe illegal aliens are collecting federal benefits even though the idea came from the Treasury Inspector General who stated unequivocally that illegals are collecting benefits was right in front of her.

The amendment failed with unanimous support of the republicans on the committee.

Is the Senate trying to bankrupt the country? Why are we giving this money to people who are here illegally while our veterans are living on the streets?

Cleaning Up The Federal Taxes And The Federal Budget

Yesterday The Washington Times posted an article about one aspect of the tax bill that will limit fraud and save the taxpayers billions of dollars.

The article reports:

The new GOP tax overhaul would strip illegal immigrants of the ability to claim several major tax credits, saving the government $23.1 billion over the next decade, according to the bill’s authors.

For years Republicans have complained that despite a general ban on taxpayer benefits flowing to illegal immigrants, the IRS has allowed them to collect the child tax credit, the American Opportunity Tax Credit and the Earned Income Tax Credit.

…But the new tax overhaul tries again, calling for taxpayers to have to submit work-eligible Social Security numbers in order to claim the credits.

Immigrant-rights advocates have complained about attempts to close the tax credits in the past.

In the case of the child tax credit, activists say that while the parents may be in the country illegally, their children are often U.S. citizens who deserve the credit.

…Many illegal immigrants pay taxes using Individual Taxpayer Identification Numbers, which the IRS issues to those who aren’t authorized to work in the U.S., but whom the government still wants to pony up to Uncle Sam.

The IRS pays out billions of dollars a year in tax credits to people filing using ITINs each year, according to the agency’s inspector general.

The inspector general has repeatedly urged the IRS to stop making the payments, but the agency has refused, saying it interprets the law related to those tax credits to cover illegal immigrants as well as other taxpayers.

The obvious question is why is the government making payments to people who are not in America legally and have no right to work here.

The Need For Fiscal Responsibility In Washington

Yesterday The Washington Times reported that the Internal Revenue Service was extremely generous with taxpayer money–paying millions of dollars in refunds to people who were not legally entitled to them.

The article reports:

The IRS doled out more than $24 billion in potentially bogus refunds claimed under several controversial tax credits in 2016, according to a new audit that said $118 million was even paid to people who weren’t authorized to work in the U.S. in the first place.

Some $16.8 billion in payments were made on improper claims under the Earned Income Tax Credit, signifying a 24 percent error rate. Investigators also estimated $7.2 billion in improper payments for the Additional Child Tax Credit, representing 25 percent of the total, and $1.1 billion in improper payments, or 24 percent, for a higher education tax credit.

The totals and error rates for the earned income and child credits were comparable for 2015, while the education tax credit saw improvement.

The article explains that Congress passed a law in 2015 that was supposed to curb payments to people who were not entitled to them.

The article reports:

Both the inspector general and the tax agency said that steps have already been taken to try to prevent a repeat in the future, saying that a law passed in late 2015 should help.

Treasury Inspector General for Tax Administration J. Russell George said the IRS needs to follow through on the 2015 law, which imposes more restrictions on certain filers and delays refunds for people claiming the credits to give agents more time to flag suspicious returns.

One particular problem the IRS faces is checking people who have Social Security numbers but who aren’t authorized to work in the U.S.

This is one place that the federal budget could be easily cut. Tax refunds should only go to the people entitled to receive them.

 

One Reason Washington Insiders Fear Ted Cruz

Senator Ted Cruz is not a Washington insider. Despite the fact that his career path has taken him to Washington, he is not part of the ‘in-crowd.’ He has shown numerous times that he has basic principles and that he is willing to take a stand on those principles whether anyone joins him or not. This sort of thinking is dangerous to the Washington establishment–of either party. That is one reason the attacks on him will increase as the primary elections continue.

Currently the Internal Revenue Service Tax Code is a tribute to the effectiveness of lobbyists. The tax code is used to encourage certain behavior and discourage other behavior. There are times when the tax code has been used to encourage marriage and families and times when it has been used to discourage marriage. Certain business with strong lobbyists have received tax breaks in the past. The tax code has been used to subsidize certain industries and behaviors. Crony capitalism has been a major force behind changes and writing of the tax code. It is time for that to end, and Ted Cruz has an interesting suggestion as to how to end it.

The following is taken from Ted Cruz’s webpage:

FlatTaxPlanWouldn’t it be nice to be able to pay your taxes on this simple form?

The website further reports:

PERSONAL INCOME TAX – SINGLE RATE: 10%

The Simple Flat Tax creates a simple, single-rate flat tax for individuals. The existing seven different rates of individual income tax will become one low rate: 10%.

  • A family of four will pay no taxes on their first $36,000 of income.
  • The plan exempts a large amount of initial income for low- and middle-income taxpayers, with a $10,000 standard deduction and $4,000 personal exemption. It also keeps the Child Tax Credit and expands and modernizes the Earned Income Tax Credit with greater anti-fraud and pro-marriage reforms.
  • The plan keeps the charitable giving deduction and features a home mortgage interest deduction, capped at principal value of $500,000.

BUSINESS FLAT TAX – SINGLE RATE: 16%

The corporate income tax along with the payroll tax are abolished, replaced by a 16% Business Flat Tax.

  • The current corporate tax code is riddled with years of accumulated loopholes and special favors, burdening U.S. businesses with the highest top tax rate among the advanced nations. This convoluted and anti-competitive structure will be replaced with a simple 16% tax on net business sales (gross sales minus expenses and capital expenditures).
  • The current payroll tax discourages work and job creation. The vast majority of Americans pay more in payroll tax than in income tax. The Simple Flat Tax will eliminate the payroll tax, boosting jobs and wages for working Americans, while guaranteeing funding for Social Security and Medicare.

UNIVERSAL SAVINGS ACCOUNTS (USA)

The Simple Flat Tax creates Universal Savings Accounts (USA) allowing savings of up to $25,000 per year in tax-deferred dollars.

Savers can withdraw the funds at any time for any reason – whether it be for college tuition, a down payment on a home, or their son or daughter’s wedding. This savings feature harmonizes with the tax elements of the Cruz Simple Flat Tax to move toward encouraging savings and investment – a recipe for economic growth and jobs.

There are other tax reform plans out there, but this plan looks possible and interesting. The plan also eliminates the death tax, the overseas profits tax, the Alternative Minimum Tax, and the ObamaCare taxes.

I would just like to note that there is some serious double taxation in our current tax code–the death tax taxes money that taxes were paid on during the life of the person who died. Taxes paid on Social Security income are being paid on money that was already taxed when it was earned. The government needs to become considerable less greedy and allow Americans to keep more of the  money they earn.

 

 

Is It True?

Donald Trump has experienced all sorts of blowback because of his remarks about illegal immigration. He doesn’t seem overly concerned. Regardless of how you feel about him as a presidential candidate, he has definitely made the debate interesting. So what is actually true about America’s problem with illegal immigration?

A website called Family Security Matters posted an article today detailing some of the numbers.

The article reports:

Non-Americans commit over five times more serious crimes per capita than Americans.

It is estimated that there are some 133,741 foreign criminals in prisons and jails in the USA (1).  They are not there for spitting on the sidewalk or jaywalking, and very few are there for immigration violations, as those illegal alien criminals are typically deported in fairly short order or simply let go as we have seen time and time again. They are there in large part for molesting, raping, killing, maiming and murdering people in America, as you will see below. 

Add in the 168,680 convicted criminal immigrants who have final orders of removal but who remain at large in the U.S., and another 179,018 convicted criminal aliens with deportation cases pending but who are also at large (2), and we have a total non-American felon population of 481,439…a number the size of our 35th largest city, Sacramento, California, and larger than the entire populations each of Atlanta, Kansas City, Omaha, Miami, Minneapolis – and more.   

And remember, for most of these felons, there was a victim. 

This is not encouraging. The article goes on to point out that although illegal aliens comprise less than 5 percent of the population, they make up 27 percent of the prison population.

So what has happened to American immigration? Has it changed over the years? Are we allowing legal immigration of people who are going to have a harder time assimilating than in the past? Yes to all three questions.

Senator Ted Kennedy was responsible for  getting the 1965 Immigration Act (the Hart-Celler Act) passed. That Act represented a drastic change in American immigration policies. Previous immigration policies had favored immigrants from England, Ireland, and Germany–people from countries that had originally populated America. This Act added policies calling for “family reunification.” Numerical restrictions on visas were set at 170,000 per year, with a per-country-of-origin quota, not including immediate relatives of U.S. citizens or “special immigrants” (including those born in “independent” nations in the Western Hemisphere, former citizens, ministers, and employees of the U.S. government abroad). The new laws changed to demographic of America, resulting in pockets of various nationalities that did not assimilate. America was no longer a ‘melting pot,’ it had become a country of groups that were not necessarily interested in assimilating.

This is not a recipe for a successful country. America was built by people who came here for a better life and to become Americans. Many immigrants still fit that description, but many do not. Legal and illegal immigrants have learned how to take advantage of America’s welfare benefits and its tax system. In March of this year, I wrote an article about the use of the Earned Income Tax Credit and Child Credit by illegal aliens. This is directly taking money away from working Americans and giving it to people who are here illegally. That needs to stop.

At any rate, Donald Trump is pointing out things Americans need to be aware of. Again, regardless of how you plan to vote in the 2016 election, it is probably a good idea to listen to what he is saying. The one advantage Donald Trump has over most of the other candidates is that he is beholden to no one for money. Unfortunately many of our politicians cannot make that claim.

Let’s Give Away More Of Taxpayers’ Money

Sometimes you wonder if Congress were spending their own money, would they be a little more careful with it?

On Saturday, The DC Clothesline reported that the Democrats on the Senate Budget Committee voted unanimously to allow illegal immigrants to receive Earned Income Tax Credit (EITC) and child credit. Note the words “illegal immigrants.”

The article reports:

Sen. Jeff Sessions proposed an amendment, which would prevent illegal aliens from receiving the Earned Income Tax Credit (EITC)  and child credit.

…In the last year with complete records, 2010, the amount of fraudulent payments hit 4.2 billion dollars and all tax credits combined cost about 7.6 billion last year.

Democrats who voted against the amendment were:  Bernie Sanders, Debbie Stabenow,  Sens. Patty Murray, Ron Wyden, Sheldon Whitehouse, Jeff Merkley, Mark Warner, Tammy Baldwin, Tim Kaine and Angus King.

…Debbie Stabenow, who is one of many democratic women with IQs in single digits said she doesn’t believe illegal aliens are collecting federal benefits even though the idea came from the Treasury Inspector General who stated unequivocally that illegals are collecting benefits was right in front of her.

The amendment failed with unanimous support of the republicans on the committee.

Why don’t we either return illegal aliens to their home countries or take steps to prevent them from taking money out of the pockets of Americans. I don’t mind giving someone a hand-up when needed, but we have reached the point where illegal aliens are committing fraud to take money from Americans. That has got to stop.

Do We Really Want To Do This?

Yesterday Breitbart.com posted a story about the cost of President Obama’s executive order on amnesty. This executive order has major consequences.

The article reports:

The lifetime costs of Social Security and Medicare benefits of illegal immigrant beneficiaries of President Obama’s executive amnesty would be well over a trillion dollars, according to Heritage Foundation expert Robert Rector’s prepared testimony for a House panel obtained in advance by Breitbart News.

Rector, a senior research fellow at Heritage, is slated to speak on the costs of Obama’s executive amnesty Tuesday before the House Oversight and Government Reform Committee. He will testify to the high entitlement costs of granting legal status to millions of illegal immigrants.

Based on Rector’s calculations, which assume that at least 3.97 illegal immigrants would apply for and receive legal status under Deferred Action for Parents of U.S. citizens and legal permanent residents (DAPA), and that the average DAPA beneficiary would have a 10th grade education, the costs would be immense.

Specifically, in 2010 dollars, the lifetime costs of Social Security benefits to DAPA beneficiaries would be about $1.3 trillion.

This would be a problem for the federal government.

The article also calculates the cost of welfare benefits to the new immigrants.

The article explains:

“On average, the combined cost of means-tested welfare benefits currently received, the EITC and ACTC cash, and potential Obamacare benefits would come to $17,800 per year per DAPA family,” Rector’s testimony reads. “The aggregate cost would be over $35 billion per year.”

In terms of what DAPA eligible individuals would contribute in tax payments once they are “on the books,” Rector estimates that “Federal Insurance Contribution Act (FICA) and federal income tax revenues would increase by about $7.2 billion per year.”

As you watch the fight for executive amnesty unfold, you might want to add the Cloward Piven Strategy to your list of possible explanations for this fight.

TeaPartyInTheHills defines Cloward Piven as follows:

The strategy was first proposed in 1966 by Columbia University political scientists Richard Andrew Cloward and Frances Fox Piven as a plan to bankrupt the welfare system and produce radical change. Sometimes known as the “crisis strategy” or the the “flood-the-rolls, bankrupt-the-cities strategy,” the Cloward-Piven approach called for swamping the welfare rolls with new applicants – more than the system could bear. It was hoped that the resulting economic collapse would lead to political turmoil and ultimately socialism.

The National Welfare Rights Organization (NWRO), founded by African-American militant George Alvin Wiley, put the Cloward-Piven strategy to work in the streets. Its activities led directly to the welfare crisis that bankrupted New York City in 1975.

Veterans of NWRO went on to found the Living Wage Movement and the Voting Rights Movement, both of which rely on the Cloward-Piven strategy and both of which are spear-headed by the radical cult ACORN.

Both the Living Wage and Voting Rights movements depend heavily on financial support from George Soros‘s Open Society Institute.

 Something to consider.

 

 

This Might Be A Good Place To Cut The Federal Budget

Fox News reported yesterday that the illegal immigrants that President Obama has granted amnesty will be eligible for retroactive tax refunds.

The article reports:

Byron York explained on “America’s Newsroom” that illegal immigrants will be eligible for the Earned Income Tax Credit, which is actually a government grant of up to $5,000 to working families.

“Illegal immigrants affected by the president’s edict will not only be eligible for those tax credits going forward, but three years retroactively,” York said. “So they’ll be able to collect quite a bit of money from the treasury.”

York explained that the IRS has issued taxpayer identification numbers to people who are in the U.S. illegally, but working, so that they can pay taxes.

Illegal immigrants who filed taxes that way over the past three years can now go back and amend those previous tax forms to claim the Earned Income Tax Credit.

Unbelievable.

Funding Illegal Immigrants Through The Tax System

Yesterday the Daily Caller posted an article about Congressional efforts to agree on a tax deal. We are currently dealing with a lame-duck Congress that does not seem to be able to agree on anything. Hopefully, the new Congress will do better.

The article reports:

President Barack Obama quietly killed a draft tax-cut because the GOP leadership wouldn’t agree to his demand that valuable tax breaks be given to millions of illegal immigrants, according to a Politico article about the secret negotiations.

Just before Thanksgiving, “the deal fell apart just as it seemed to be coming together… [because] Republicans worried undocumented immigrants targeted by [Obama’s Nov. 21 amnesty] would begin claiming the credits,”

The tax bill (now dead) was supposed to extend the temporary tax breaks that Congress traditionally extends at the end of every year. Because of the possibility of extending tax breaks to illegal immigrants, the tax breaks were not extended, and all Americans will face increased taxes next year.

So what is this actually about? The Earned Income Tax Credit Program has been plagued by fraud for years. In May 2014, the Washington Examiner reported:

The Treasury Department has released its latest report on the fight against widespread fraud in the Earned Income Tax Credit program. The problem is, fraud is still winning. And there’s not even much of a fight.

“The Internal Revenue Service continues to make little progress in reducing improper payments of Earned Income Tax Credits,” a press release from Treasury’s inspector general for Tax Administration says. “The IRS estimates that 22 to 26 percent of EITC payments were issued improperly in Fiscal Year 2013. The dollar value of these improper payments was estimated to be between $13.3 billion and $15.6 billion.”

Now Congress is battling over whether or not to extend the Earned Income Tax Credit to illegal immigrants. What are they thinking?

The article at the Daily Caller reminds us that businesses support President Obama’s Immigration policy because it will drive down wages and increase their profits. This is the result of the policy of a President who complains about wage inequality.

The Daily Caller also reports:

Obama is offering work-permits, $2 trillion in taxpayer benefits and a quick route to citizenship to at least 4 million of the estimated 12 million illegal immigrants in the country. He is also trying to win business support for his plan by boosting the inflow of guest-workers sought by blue-chip companies.

This is not the way to build the American economy.

The Internal Revenue Service And Tax Fraud

On Tuesday, Byron York posted an article at the Washington Examiner website about widespread fraud in the Earned Income Tax Credit program.

The article reports:

“The Internal Revenue Service continues to make little progress in reducing improper payments of Earned Income Tax Credits,” a press release from Treasury’s inspector general for Tax Administration says. “The IRS estimates that 22 to 26 percent of EITC payments were issued improperly in Fiscal Year 2013. The dollar value of these improper payments was estimated to be between $13.3 billion and $15.6 billion.”

That’s not pocket change. Remember that these are the people who will administer the revenue part of ObamaCare.

The article explains that the IRS is not making any serious effort to end this fraud:

The new report found that the IRS is simply ignoring the requirements of a law called the Improper Payments Elimination and Recovery Act, signed by President Obama in 2010, which requires the IRS to set fraud-control targets and keep improper payments below ten percent of all Earned Income Tax Credit payouts. “The IRS continues to not provide all required IPERA information to the Department of the Treasury,” the new report says. “… For the third consecutive year, the IRS did not publish annual reduction targets or report an improper payment rate of less than 10 percent for the EITC.”

Let’s eliminate all bonuses paid to IRS employees until this fraud is at least under control. That might cause the IRS to develop some interest in solving the problem.

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Work vs Welfare

Below is the Executive Summary from a white paper released by the CATO Institute on August 19. The white paper was entitled, “The Work versus Welfare Trade-Off: 2013.”

Executive Summary

In 1995, the Cato Institute published a groundbreaking study,The Work vs. WelfareTrade-Off, which estimated the value of the full package of welfare benefits available to a typical recipient in each of the 50 states and the District of Columbia. It found that not only did the value of such benefits greatly exceed the poverty level but, because welfare benefits are tax-free, their dollar value was greater than the amount of take-home income a worker would receive from an entry-level job.

Since then, many welfare programs have undergone significant change, including the 1996 welfare reform legislation that ended the Aid to Families with Dependent Children program and replaced it with the Temporary Assistance to Needy Families program. Accordingly, this paper examines the current welfare system in the same manner as the 1995 paper. Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years.

The current welfare system provides such a high level of benefits that it acts as a disincentive for work. Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour. If Congress and state legislatures are serious about reducing welfare dependence and rewarding work, they should consider strengthening welfare work requirements, removing exemptions, and narrowing the definition of work. Moreover, states should consider ways to shrink the gap between the value of welfare and work by reducing current benefit levels and tightening eligibility requirements.

One of the things that has made America great has been the willingness of Americans to work hard, knowing their diligence would be rewarded. When the government creates a situation where staying home doing nothing pays as well as working, it undermines the work ethic in America and weakens our country. It might also be a good idea to examine the role the tax burden plays in this–does the working person earn less because of the tax burden that comes with working? Is the welfare recipient subject to a lesser tax burden?

The bottom line here is simple. People are not stupid. If a person can make as much money not working as he would working, why should he work? I recently posted a story with a striking example of this philosophy at rightwinggranny.com. We need to reinstate the work requirements to receive aid, and we need to be more aware of who is getting aid so that we can limit fraud.

It’s time to make sure that the people who are working hard are rewarded for their hard work.

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