The new budget proposal for 2018 president Donald Trump just submitted will prevent illegal immigrants from claiming two major tax credits for low and middle income people, reveal White House documents released Tuesday morning.
According to reports, the $4.1 trillion budget would restrict eligibility for the Earned Income Tax Credit and the Child Tax Credit to taxpayers “who are authorized to work in the U.S.”
In order for the administration to balance the budget in 10 years without changing Social Security or Medicare, they will need to restructure programs for poor Americans. According to the White House’s calculations, tightening eligibility rules for the two tax credits will save about $40 billion over a decade.
White House Budget Director Mick Mulvaney voiced his opinion that it’s unfair to legal residents that people in the U.S. without authorization are eligible for the same tax breaks:
“How do I go to somebody who pays their taxes, and say, ‘Look, I want you to give this earned income tax credit to somebody who’s working here illegally’? That’s not defensible. And it’s a reasonable accommodation to simply ask them for Social Security numbers.”
The EITC was created to benefit people with low to moderate income and provide a guaranteed tax credit to households even if they have no reportable income.
In order to receive EITC, workers must provide the IRS with a social security number. The refundable portion of the child tax credit only requires an individual taxpayer identification number, which the IRS assigns to workers who are not authorized but need it to report taxable income.
The administration mentioned about how the benefits would be limited to people who are authorized to work in the country.
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