Marchant Introduces Legislation to Preserve EITC for American Workers

Today, U.S. Congressman Kenny Marchant (TX-24) introduced H.R. 1657, the Fairness for Americans in Internal Revenue Refunds (FAIRR) Act. The legislation takes steps to preserve and strengthen the Earned Income Tax Credit (EITC) by prohibiting the credit’s administration to illegal immigrants who receive Social Security Numbers under the president’s deferred action executive orders.

Marchant released the following statement upon the bill’s introduction:

“Under the president’s unilateral amnesty orders, millions of illegal immigrants are to be given U.S. Social Security Numbers and work permits. Not only will this allow illegal immigrants to claim the Earned Income Tax Credit for future work, it will also give them the ability collect EITC tax refunds on previous earnings from unauthorized work. In short, the president has transformed a widely successful welfare-to-work tax provision for low-income individuals into a cash bonus for those who have been working in the U.S. illegally.

“Action must be taken to ensure that the president’s unilateral amnesty orders do not jeopardize the EITC’s effectiveness and availability for American workers. That’s why I have introduced the FAIRR Act. This bill would prevent any beneficiary of the president’s unilateral amnesty orders from claiming the EITC. The legislation would also apply to any similar executive action the president might take in the future.

“In preserving the EITC only for its intended recipients, the FAIRR Act takes meaningful steps to safeguard taxpayer dollars and protects this important tax provision for low-income Americans. Individuals who have broken our nation’s immigration laws should not be rewarded at taxpayer expense.”

The Earned Income Tax Credit is a long-standing refundable tax credit for low-to-moderate income Americans that encourages and rewards work, thereby creating an incentive for people to seek employment rather than welfare benefits. The credit has been successful in helping millions of Americans lift themselves out of poverty.

Marchant’s FAIRR Act would prevent the EITC from being distributed to illegal immigrants who have obtained an SSN through any past, present, or future deferred action executive order. The legislation also prohibits any such illegal immigrant from making amended filings to collect EITC refunds for years during which they were not authorized to work.

According to analysis by the Joint Committee on Taxation, the FAIRR Act would save an estimated $8.8 billion over the next 10 years. To read a one-page summary of the bill, please click here.