GOP Tax Plan Would Close Illegal Alien Tax Credit Loophole

House Republicans unveiled a tax overhaul last week that would strip illegal aliens of the ability to claim several major tax credits. (Washington Times, Nov. 2, 2017) The bill’s authors estimate that doing so would save the government a whopping $23.1 billion over the next decade. (Id.)

The bill would require taxpayers to submit a work-eligible Social Security number in order to collect the Child Tax Credit, American Opportunity Tax Credit, and the Earned Income Tax Credit. (Id.) Currently, the Internal Revenue Service (IRS) only requires that individuals provide an Individual Taxpayer Identification Number (ITIN), which they indiscriminately hand out to illegal aliens, to receive these tax credits. (Id.)

The House Ways and Means Committee is currently in the midst of a four-day markup of the bill. Stay tuned to FAIR for updates.