by DemoralizerOfPanicans follow (9)
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On Saturday, Newsweek ran a story headlined, “Scott Bessent looks to cut off tax benefits for illegal migrants.” In the wake of the DC shootings, President Trump published a fiery Thanksgiving post that, among other things, promised to crack down on taxpayer money flowing to illegal aliens.
On Friday, Treasury Secretary Scott Bessent tweeted that his agency was already acting.
Illegal aliens unauthorized to work in the U.S. can still file federal tax returns using ITINs, which the IRS issues “regardless of immigration status” so that non‑citizens can report income and pay tax. But because they are often in low or mid-income levels, illegals don’t pay taxes.
Instead, illegals with ITINs qualify for various “tax credits.” You aren’t going to believe this next part, but I swear it is true.
Some of these tax credits are “refundable,” meaning that if the credit exceeds any tax owed, the IRS cuts a check or a direct deposit for the difference, turning the credit into a rebate instead of just reducing tax liability to zero.
In other words, we’re basically paying the illegals to be here. Using federal tax money collected from citizens. And “charitable” NGOs busily teach them how to get ITINs and apply.
Unsurprisingly, no one has ever studied the scope of this massive, unbelievable problem. But estimates suggest the total amount of “tax credits” “refunded” to illegal aliens is billions and billions per year. As far back as 2010, one Inspector General report found $4.2 billion in Child Care tax credits alone flowing to illegals, having rocketed up from $924 million just five years earlier. A 2023 FAIR estimate calculated $8.4 billion “refunded” to illegals from the Child Care and Earned Income credits alone.
Scott Bessent is now working with the DOJ to issue a new legal opinion, which will reclassify refundable portions of the Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Tax Credit, Premium Tax Credit, and Saver’s Match Credit as “federal public benefits” that cannot lawfully be paid to “non‑qualified aliens,” including those here illegally.
In a single stroke, this will gut a massive “free money” incentive for illegals to remain in America.
H&R Block employees turned in their illegal alien clients to ICE, and used the reward money to purchase cruise tickets.
H&R Block employees turned in their illegal alien clients to ICE, and used the reward money to purchase cruise tickets.
I suspect all the illegals are largely the cause.
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