In Which Paying Back Taxes Transforms into Winning Back Taxes

One of the biggest selling points of the gang’s immigration deform bill was the provision which would force amnestied illegals to pay back taxes.  From listening to the peddlers of amnesty, one would think that the windfall to the Treasury from the taxes would be large enough to make the entire amnesty worthwhile.  I’m sure you’ve heard those sleazy Zuckerberg ads playing Rubio’s speech about all the conditions for amnesty, including the requirement that they pay back taxes.


Well, despite the fact that all those conditions, including the tax provision, have been exposed as fraudulent, those ads are still contaminating the airwaves of conservative talk radio.  In fact, Rubio himself now admits that the bill lacks the votes to pass because of all the failed promises.  To digress for a moment, while Rubio is correct about the lack of public trust in the gang’s bill, which he helped craft, he is wrong about not having the votes.  Democrats absolutely have the votes to pass the bill, including Rubio’s own vote.  They might add some cosmetic amendments to the bill, but the basic structure will remain intact and will pass with over 60 votes.

Hearkening back to the tax provision, let’s put aside the fact that this bill only requires those illegals who have already been “assessed” by the IRS to pay back taxes.  In the real world, that would mean that no illegal, aside for those who run conservative organizations, would be required to pay taxes pursuant to this legislation.  But even if they would fix this loophole and require them to pay back taxes….they wouldn’t have to pay anything; they would actually make money off the system.

We have pointed out from day one that the entire notion of balancing the budget and saving the economy with millions of low-skilled immigrants is absurd.  Most conservatives understand that over 40% of tax filing units from native Americans are not substantial enough to result in a net positive tax liability.  In the case of the amnestied illegals, they will receive more in refundable tax credits than the small amount they pay in payroll taxes (very few of them will have any income tax liability).  The Senate Judiciary Committee has already rejected amendments to bar the amnestied aliens from receiving refundable tax credits.  This means that if they owe $2,000 in payroll taxes and receive $7,000 in refundable tax credits, they will walk away with $5,000.


Now, what if all of the amnesty recipients would be entitled to collect refundable tax credits retroactively from the time they began working here?  According to Temple University law professor Jan Ting, that is a distinct possibility:

On June 9, 2000, a “Chief Counsel Advice” was published in the name of “Mary Oppenheimer, Acting Assistant Chief Counsel (Employee Benefits)”, though it was signed by “Mark Schwimmer, Senior Technician Reviewer”. This document advises IRS employees that illegal aliens who are disqualified from receiving the EITC can retroactively receive EITC benefits for years worked without a valid Social Security number if, after receiving a valid Social Security number, they file an amended return for the previous years worked.

Thus, illegal aliens who obtain legal work authorization, either by qualifying for a work visa or by dispensation granted by Congress or the immigration authorities, and who then obtain a valid Social Security number, can claim the EITC for previous years worked without a Social Security number as long as such claims are not barred by a statute of limitations, generally within three years.

As we know, all of the amnestied illegals would be eligible to apply for Social Security numbers within 6 month of passage (it could actually be earlier if Napolitano submits her security “plan” early).  Once they get a SS number, they can make a reasonable case for winning back taxes. You can’t make this stuff up!


Meanwhile, Senators Sessions, Cruz, Grassley, and Lee have sent a letter to their fellow senators detailing all of the outrageous details of the bill.  Does your senator support the sentiments expressed in the letter?  Or does your senator plan to vote for cloture next week?


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