Last week, we covered IRS Commissioner John Koskinen’s testimony about the shocking tax consequences of Obama’s executive amnesty plan. In previous testimony before Congress, Koskinen explained that illegal immigrants who were granted amnesty would be eligible to receive back-refunds in the form of the Earned Income Tax Credit (EITC)—but only if they had registered with an Individual Taxpayer Identification Number (ITIN.) This means that, although the person was here illegally, they were still working and paying taxes and thus eligible for a refund. It’s a bogus loophole, but it stems from an existing IRS interpretation of their own rules, so at the end of the day it was a “fix this now” situation rather than an “end of the world” scenario.”
That was scandal enough, though, considering the divisive nature of illegal immigration itself; but this week’s testimony from Koskinen just made things a whole lot worse.
That’s right—we’ve had a “clarification.”
From the Washington Times:
On Wednesday, he said even illegal immigrants who didn’t pay taxes will be able to apply for back-credits once they get Social Security numbers.The EITC is a refundable tax credit, which means those who don’t have any tax liability can still get money back from the government.“Under the new program, if you get a Social Security number and you work, you’ll be eligible to apply for the Earned Income Tax Credit,” Mr. Koskinen said.He said that would apply even “if you did not file” taxes, as long as the illegal immigrant could demonstrate having worked off-the-books during those years.That expands the universe of people eligible for the tax credit by millions. He said only about 700,000 illegal immigrants currently work and pay taxes using an Individual Taxpayer Identification Number, but as many as 4 million illegal immigrants could get a stay of deportation and work permits under the temporary amnesty, which would mean they would be eligible to claim back-refunds if they worked those years.
From 700,000 to 4 million, all getting money from the government, just like that. How much does the IRS estimate this will cost?
Mr. Koskinen said he didn’t know how much money the tax refunds would cost, and said the White House never checked with him before announcing the amnesty. He said the maximum annual credit is between $500 and $600 for an individual.
I think I’d feel better if this were a huge conspiracy; but all things considered, there’s not much to consider because the leaders of the free world literally don’t know how much this unilateral action by Obama will squeeze the taxpayers for.
Representative Rick Mulvaney (R-SC), who was responsible for the initial grillings of Koskinen, has promised to keep digging into the tax consequences of this mess of an order, saying, “This is just another example of the administration operating outside the rule of law.”
I’m almost afraid to see what he’ll find next.
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