WASHINGTON, D.C. - Five years after 13 Investigates exposed a massive tax loophole for undocumented workers, Congress will again consider a remedy.
This afternoon, Congressman Luke Messer (R – Indiana) introduced legislation that would effectively prevent illegal immigrants from claiming Child Tax Credits on their federal tax returns.
Back in 2012, WTHR exposed how the Internal Revenue Service was paying more than $4 billion annually in various Child Tax Credits to undocumented workers – and that much of that money was granted for children who never lived in the United States.
At the time, the IRS told 13 Investigates it could not prevent the abuse without a law from Congress.
Messer's bill, H.R. 363, would close the tax loophole by reserving Child Tax Credits only to U.S. residents who have a valid Social Security number. It would amend the Internal Revenue Code and clarify eligibility for the Child Tax Credit.
“Our broken tax and immigration systems continue to incentivize immigrants to come here illegally,” Messer explained in a statement sent to WTHR. “Closing this loophole will steer us back to rule of law, ensure tax benefits like this are reserved for American citizens and save us billions of dollars.”
In recent years, Congress has failed to enact similar proposals that have been introduced by other lawmakers. Critics argue that millions of children born and now living in the United States would be harmed by not allowing their undocumented parents to claim the $1,000 per child tax credit.
According to current estimates, more than 5 million children with undocumented parents now live in the United States.
