Steube Pens Op-Ed in Washington Examiner Exposing So-Called Biden Tax Credit, Actually Welfare to Illegal Immigrants
WASHINGTON, D.C.—U.S. Representative Greg Steube (R-Fla.) penned an op-ed in the Washington Examiner highlighting the misleading aspects of President Biden’s so-called “child tax credit” that includes benefits to nontaxpayers, including illegal immigrants.
“The Biden Administration and Democrats in Congress have now begun to use the IRS and tax code to circumvent this common-sense policy under the guise of a ‘child tax credit.'” Steube wrote. “Passed through the American Rescue Plan Act, the Democrats boasted about the credit all year, declaring a victory for taxpaying families. What they failed to mention, however, is the program also gives direct cash payments to so-called ‘taxpayers’ who don’t file or pay taxes, including illegal immigrants.”
To qualify for Biden’s “child tax credit,” an individual simply needs to have a Taxpayer ID Number and a child who has a Social Security Number. There is no requirement that the individual works or has filed taxes.
“American taxpaying families have been duped into believing they are actually benefitting from this misguided program, when in fact they have fallen victim to a larger scheme aiming to expand America’s welfare state.” Steube continued. “This program should not be extended until it can be implemented without giving payments to ‘taxpayers’ who don’t actually pay taxes or to illegal immigrants. Until these changes are made, this thinly veiled benefit scheme will only hurt hardworking American families who will be left to pay the bill.”
The full op-ed can be found here or below.
So-called Biden ‘tax credit’ is actually welfare for illegal immigrants
By Congressman Greg Steube
“In the 1990s, Congress prohibited illegal immigrants from receiving taxpayer-funded welfare benefits. The bipartisan Personal Responsibility and Work Opportunity Act of 1996, signed into law by Bill Clinton, ensured that American tax dollars would not be used to subsidize people in the country illegally. The Biden Administration and Democrats in Congress have now begun to use the IRS and tax code to circumvent this common-sense policy under the guise of a “child tax credit.” Passed through the American Rescue Plan Act, the Democrats boasted about the credit all year, declaring a victory for taxpaying families. What they failed to mention, however, is the program also gives direct cash payments to so-called “taxpayers” who don’t file or pay taxes, including illegal immigrants.
While many hardworking American families have benefited from the Trump tax cuts and could use further tax relief, the Biden Administration’s new credit is not limited to American taxpayers. To qualify for the credit, an individual simply needs to have a Taxpayer ID Number and a child who has a Social Security Number. There is no requirement that the individual works or has filed taxes. And there is not even a requirement that the individual is in the country legally. While this program is currently only in effect for 2021, Democrats in Congress have made it a priority to include a permanent extension in their recent multi-trillion-dollar spending proposals.
If Democrats want to provide tax relief to hardworking American families, there is already a framework in place that would allow them to do this without turning it into a welfare program for illegal immigrants. The Earned Income Tax Credit (EITC) has existed for years with bipartisan support. Unlike the new Biden credit, the EITC only applies to those who actually pay taxes. There is also a monthly advanced payment option under the EITC. But simply increasing the EITC would not allow Biden and Congressional Democrats to provide a direct payday to those who don’t work or are in the country illegally.
One of several consequences of this Democrat scheme is that it incentivizes individuals who have left the workforce to remain unemployed, even when their enhanced unemployment benefits run out. Businesses across the country are already struggling to find labor while many workers sit at home collecting benefits. This new Democrat subsidy to those not trying to find work will undoubtedly prolong these crippling effects on our businesses and economy.
Even Democrat Senator Joe Manchin has recently called for a work requirement to accompany the credit. Such a requirement would remove the incentive for recipients to sit at home and collect while unemployed. A work requirement, if properly implemented, would also prohibit illegal immigrants who are not authorized to legally work in the United States from collecting this benefit.
Additionally, the program does not count as income when calculating other benefits, which many of the non-working recipients are likely to receive. Generally, an increase in income would impact benefits such as food stamps, public housing, or welfare. But the payments under the Democrats’ program are misleadingly classified as “tax credits” and therefore do not impact the amount of other benefits received.
So, how much will this subsidy of non-taxpayers and illegal immigrants cost? According to the Joint Committee on Taxation, this benefit will cost American taxpayers over $80 billion in 2021 alone. How will Democrats look to pay for it? By raising taxes on actual working families and small businesses of course.
How’s that for a tax credit?
American taxpaying families have been duped into believing they are actually benefitting from this misguided program, when in fact they have fallen victim to a larger scheme aiming to expand America’s welfare state. This program should not be extended until it can be implemented without giving payments to “taxpayers” who don’t actually pay taxes or to illegal immigrants. Until these changes are made, this thinly veiled benefit scheme will only hurt hardworking American families who will be left to pay the bill.”
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