Democrats Say “No” to Bipartisan Idea to Save $1.1 Billion
Republican Study Committee Chairman Tom Price (R-GA) issued the following statement after the Democrat majority blocked the latest YouCut initiative chosen by the American people for consideration on the House floor. This week’s winner would eliminate the Advanced Earned Income Tax Credit (AEITC), saving taxpayers $1.1 billion over the next decade.
“Through nine weeks of consideration, the American public has cast more than 1.5 million votes on numerous proposals to cut wasteful Washington spending,” said Chairman Price. “The nine winning initiatives chosen by our fellow citizens could have saved taxpayers more than $120 billion if not for the fierce opposition of Speaker Pelosi’s Democrats. Despite the majority party’s consistent obstruction, this week’s YouCut choice clearly shows that addressing our skyrocketing debt can and should be a bipartisan goal. Originally proposed by a member of the majority, it would save $1.1 billion over the next decade by eliminating the wasteful and error-ridden AEITC.
“Unfortunately, even those Democrats who pay lip service to spending cuts almost always fail to support them when it really matters. Saving America from the impending debt crisis will require a strong effort from both parties to cut spending now. The sooner we begin, the better off our country will be.”
Note: Under the Advanced Earned Income Tax Credit program, eligible taxpayers may receive a portion of their EITC throughout the year in their paychecks. A government audit revealed that some 80 percent of recipients did not comply with at least one program requirement; 20 percent had invalid Social Security numbers and thus may not have been eligible for the credit; 40 percent failed to file the annual tax return required to reconcile the credit; and of the 60 percent of recipients who did file a return, two-thirds misreported the amount received. As a result, this program is particularly susceptible to waste, fraud, and abuse.
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