Wednesday, June 26, 2013

The Penalties Imposed On Illegal Immigrants Will Not Fund the Fence

The immigration reform debate rages on and on Monday 06/24, the Senate achieved cloture with all Democrats voting for the Hoeven-Corker amendment and 16 republicans crossing party lines to vote for the amendment.  (1)  However, this vote was a vote for cloture and does not mean the bill is law.  The house also has to vote on the bill and they promise to add additional border security to the Senate bill.  This means there will be a conference where they will combine the two bills, which will no doubt mean the removal of the additional border security measures added in House bill. 

During the debate on this bill, Marco Rubio, one of the gang of eight stated that we must legalize illegal immigrants so they can fund border security. (2) His claim was that they would use the penalties collected from illegals seeking a path to citizenship to fund the building of the border fence.  However, we must ask the obvious question, how are these low-income people going to come up with the money to pay these fines?  The tax code contains one possibility. 

There are tax credits in our current tax code that pay low income people up to $5,999 in earned income tax credit (EITC) and $1,000 in child tax credit (CTC) for each qualifying child claimed as a dependent on their return.  However, those in our country illegally who are required to file a tax return file using an Income Tax Identification Number (ITIN) and do not qualify for these credits.  However, if they receive a Social Security Number (SSN) as part of their path to citizenship, they are likely to use their tax refund to pay their fines.  To make matters worse, these taxpayers can amend their returns going back three years once they receive a valid SSN and collect the refundable credits they could not receive when filing with an ITIN. (3) 

This increase in tax returns with EITC and CTC will increase the deficit for the current year as well as years into the future where these individuals will qualify for larger tax refunds.  I understand that they will not receive a valid SSN until paying their fines but I see a new industry arising where these individuals will be able to borrow money to pay their fines and repay the loan once they receive their back tax refunds.  In fact, it is highly possible that companies looking to start this industry are behind those lobbying Senators for this bill. 

I do not believe the CBO numbers considers this in their estimate that this bill would reduce the Federal Deficit by $175 billion over its first 10 years.  (4) I am also uncertain if those paying the fines are not given a SSN or if they are exempt from claiming EITC or CTC during their waiting period but I would not be surprised if they are.  Even if the bill does not allow them to claim these credits, you can count on this bill going to court to be able to claim these credits. 

Once again, our Senate is voting on legislation they have not had a chance to read.  This is exactly what happened with Obamacare and we are still discovering hidden costs in that legislation that has caused its cost to double to $1.8 billion in the first decade. (5) Bob Woodward stated that it is “absurd if Congress passes unread bill.” (6) He is correct for when Congress passes unread legislation it is no doubt going to be full of surprises and at this time in our country, we do not need any unwelcome surprises. 

In 2010, the Democrat controlled House, Senate forced Obamacare on the country, and the Tea party was born.  The Tea Party held massive rallies and attended town halls to let citizens know the truth about Obamacare.  The Tea Party mysteriously went silent but it is no longer a mystery because we now know Tea Party organizations were busy fighting off IRS investigations. 

It is time for the Tea Party to awaken making immigration the Obamacare issue in 2014.  We now know that this administration will harass us but we must fearlessly rally and attend town halls to get the truth about this legislation out for the future of our country is in jeopardy and I for one am not prepared to just sit idly by and watch it happen.  I plan to pray, participating in all the Tea Party events that I can, and help in the planning of events designed to get out the message of truth about this damaging legislation.  My only question is will you join me?

1. Erickson, Erick. Update on Senate Whip List. www.redstate.com. [Online] Red State, June 24, 2013. [Cited: June 25, 2013.] http://www.redstate.com/2013/06/24/update-on-senate-whip-list/.

2. Lee, Tony. RUBIO: LEGALIZE ILLEGAL IMMIGRANTS SO THEY CAN FUND BORDER SECURITY. www.breitbart.com. [Online] Breitbart News, June 14, 2013. [Cited: June 25, 2013.] http://www.breitbart.com/Big-Government/2013/06/14/Rubio-Legalize-Illegal-Immigrants-so-They-Can-Fund-Border-Security.

3. Internal Revenue Service. Basic Qualifications. www.eitc.irs.gov. [Online] Internal Revenue Service. [Cited: June 25, 2013.] http://www.eitc.irs.gov/rptoolkit/faqs/basicquals/.

4. Boyle, Matthew. FUZZY MATH: CBO SAYS IMMIGRATION BILL REDUCES FEDERAL DEFICIT. www.breitbart.com. [Online] Breitbart News, June 18, 2013. [Cited: June 25, 2013.] http://www.breitbart.com/Big-Government/2013/06/18/CBO-releases-report-on-immigration-bill-s-costs.

5. Klein, Philip. CBO: Obamacare costs double to $1.8 trillion in first decade. www.washingtonexaminer.com. [Online] The Washington Examiner, May 14, 2013. [Cited: June 25, 2013.] http://washingtonexaminer.com/cbo-obamacare-costs-double-to-1.8-trillion-in-first-decade/article/2529655.


6. Boyle, Matthew. BOB WOODWARD ON IMMIGRATION REFORM: 'ABSURD' IF CONGRESS PASSES UNREAD BILL. www.breitbart.com. [Online] Breitbart News, June 23, 2013. [Cited: June 25, 2013.] http://www.breitbart.com/Big-Journalism/2013/06/23/Bob-Woodward-berates-amnesty-bill-When-nobody-has-read-the-bill-the-outcome-is-absurd.

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