Ayotte attempts to stem fraudulent refunds; Dems block

Warning ACTC fraud

A 2009 U.S. Treasury report warned Congress about problems with tax credits that conflict with U.S. law. Democrats continue to ignore the warnings. (Snip from government report ‘Actions Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit Refundable Credit Claims’)

For years, the U.S. Treasury Dept. has warned Congress about the fraudulent payout of billions of dollars for tax credits. One of the troublesome credits is the tax credit for children. In 2009 when Democrats held absolute control of both Congress and the White House, Treasury recommended requiring a social security number to get the credit.

Congress ignored that recommendation and although Dems do not control the House, any bill or amendment addressing that issue would have to go through the U.S. Senate. That won’t happen as long as Democrats are in control.

Sen. Ayotte amendment

U.S. Sen. Kelly Ayotte’s amendment to restore military pension benefits and stop taxpayer fraud was blocked by Senate Dems. (Photo: Snip from Ayotte Senate page video)

When New Hampshire senator Kelly Ayotte (R) introduced an amendment to remedy the fraud and to protect the U.S. taxpayer, Democrat senator Barbara Boxer accused Ayotte of “going after children.”

Boxer didn’t say whether imaginary children are part of the mix, but it’s presumed they are. Ayotte’s amendment is actually aimed at “children who may not exist or who don’t live in the United States of America.”

Sen. Maj. Leader Harry Reid (D-Nev.), one of the most partisan politicos in Washington, and his fellow Democrats are actually blocking Ayotte’s common sense amendment.

If the Senate blocks a remedy for paying out taxpayer money for fraud, that should raise new questions about Reid’s leadership abilities.

To sum it up, Democrats have known for years this tax credit is rife with fraud. It may even contribute to identity theft. Yet Reid and his fellows, possibly because of pure political posturing with advocacy groups intent on increasing their own political power, refuse to address that fraud.

The Union Leader (N.H.) reported Ayotte’s statement:

“My amendment would save billions by stopping a tax fraud scheme in which illegal workers fraudulently claim the additional child tax credit, in some cases for children who don’t live in the United States or even exist. The Treasury Department has said this tax credit has been grossly abused, and my amendment takes common sense steps to prevent massive tax fraud.”

In 2009, fraud from the Additional Child Tax Credit was estimated at $8.9 billion over a five year period. That was likely a very conservative estimate.

Democrats actually weakened eligibility standards for the ACTC as part of the American Recovery and Reinvestment Act, and when standards are weakened, it’s a given that fraud increases. Dems did this knowing that serious fraud already existed, and meanwhile, they passed military pension cuts.

Ayotte proposed her amendment in an effort to pay for an extension of unemployment benefits and to restore cuts in military pensions.

(Commentary by Kay B. Day/Jan. 13, 2013)

About Kay Day

Kay B. Day is a freelance writer who has published in national and international magazines and websites. The author of 3 books, her work is anthologized in textbooks and collections. She has won awards for poetry, nonfiction and fiction. Day is a member of the American Society of Journalists and Authors and the Authors Guild.
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