May 22, 2012

Vitter: Eliminate Tax Credit Handouts to Illegal Aliens

Asks Senate colleagues to pass his bill to bar illegals from receiving child tax credits, Majority Leader Reid objects

(Washington, D.C.) – U.S. Sens. David Vitter (R-La.) and Jeff Sessions (R-Ala.) took to the Senate floor to ask for unanimous consent to pass the Child Tax Credit Integrity Preservation Act, which would prevent illegal aliens from claiming tax credits intended for American citizens and legal residents. Vitter first introduced this bill, which is now estimated to save at least $4.2 billion each year, in April 2011.

“Abuse of this tax benefit is one of the most ridiculous things adding to our federal deficit and incentivizing illegal aliens to come to America,” Vitter said. “We have a simple solution to a $4.2 billion problem, and the common-sense thing to do in the Senate would be to pass our legislation without any objection.”

Under the current loophole, the IRS allows individuals filing with an Individual Tax Identification Number (ITIN) to access the child tax credit (CTC) and the additional child tax credit (ACTC). This means that illegal aliens – who do not possess valid Social Security numbers – are currently able to receive these tax credits by simply providing an ITIN. Individual tax filers are already required to provide a valid Social Security number to claim the earned income credit (EIC), and Vitter’s bill would broaden that requirement to cover the CTC and ACTC.

A July 2011 report by the Treasury Inspector General for Tax Administration revealed that ITIN filers are receiving billions of dollars in ACTCs intended for working families, even though these individuals are not authorized to work in the U.S. The report recommends enacting Vitter’s legislation which limits the EIC to individuals who have Social Security numbers valid for employment.

SSNs are available to U.S. citizens and green card holders, as well as some temporary visitors and guest workers, and Vitter’s bill would ensure that the tax credits go only to the taxpayers they were originally intended to benefit.

Vitter serves as the chairman of the U.S. Senate Border Security and Enforcement First Immigration Caucus.