Tuesday, May 05, 2009

Hey Obama here's an onshore tax loophole you can plug!

While it may be commendable that President Obama is going after the offshore tax loopholes. Even though it may cripple some silicon valley firms. Well I guess after the banking industry and the car makers what other industries are there left to cripple? Meanwhile, the Obama administration has ignored tax programs like the Earned Income Tax Credit program right here in the U.S. that has a fraud rate approaching 30%.

Here is the money (literally billions) quote from a Treasury Department audit report on another program that tells that illegal immigrants are gaming the system and also picking up child tax credit money from U.S. taxpayers. Again billions of dollars worth of fraud!:

Outrageous! But, to get the full story that is not hidden in the bureaucratic speak of the Treasury audit report. You should read this analysis by Edwin S. Rubenstein called The Earned Income Tax Creditand Illegal Immigration
A Study in Fraud, Abuse, and Liberal Activism
. Here are some of the money quotes from it:

"But enthusiasm for the credit has blinded policy makers to its problems. The EITC program is dominated by fraud. Year after year about one-third of all EITC returns are based on illegal multiple returns, phony Social Security numbers, or claims of non-existent children or spouses. A disproportionate share of illegal alien households receive the benefit.

President Obama’s stimulus program includes tax cuts for low-income workers. The purpose, of course, is to put money back into taxpayers’ hands so they will spend it and boost the economy. But thanks to the EITC, much of the “tax relief” will go to people who have never paid a cent of tax—and may have already defrauded the government of huge sums each year.

As you know, the improper payments made in the Earned Income Tax Credit make up the second largest portion of government-wide improper payments for fiscal year 2005, estimating $9.6 to $11.4 billion dollars paid improperly.In fiscal year 2004, EITC had an improper payment rate of 25 percent. For fiscal year 2005, it was 28 percent and this is on the low side, because it’s just an estimate."

On the low side because this is "just an estimate"? How does that make you feel my fellow U.S. taxpayers! File these reports of illegals reaping refunds of U.S. tax dollars in the Hola suckers file.

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