Today, the House Ways and Means Committee passed by a vote of 22-12 a measure based on legislation authored by U.S. Congressman Sam Johnson (TX-03) to prevent illegal immigrants from getting the refundable child tax credit.
"This is a common-sense, bipartisan measure to close a loophole that is costing American taxpayers billions of dollars," Johnson said during today's mark-up. "This rampant abuse of hardworking taxpayer dollars is just wrong."
The IRS currently awards the refundable child tax credit to those who are here illegally. Because this credit is refundable, as it stands parents who owe no taxes can receive cash back from the government through the tax code.
In a report issued last year by the Treasury Inspector General for Tax Administration entitled, Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits, the IG said, "Although the law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, an increasing number of these individuals are filing tax returns claiming the Additional Child Tax Credit (ACTC)."
"I'm glad the Committee took this important step to better protect precious taxpayer dollars. It's time we close this tax loophole and put a stop to the child tax credit sham," concluded Johnson.