April 06, 2006

ILLEGAL IMMIGRANTS WILL GET TAX REFUNDS!

Illegal immigrants under the proposed legislation will be entitled to a tax refund (or "earned income tax credit") of $1000 to $4200 (give or take), even if zero income taxes are paid by them during the year, once "residence" status is granted.

For example, if you are a married illegal with 2 kids, and have adjusted gross income of 25,000, then once you obtain residence you will be entitled to a credit of just under 2,200 (which is fully refundable).

Further, under such circumstances, this person should be entitled to an “exemption” of 12,800 and “standard deduction” of 10,000. Basically, this person will have an income tax liability of around “200” on taxable income of 2,200, but (because of the earned income tax credit) will actually get a 2,000 refund.

This does not seem fair. Again, what is going on in D.C.?

See IRS.
See Senate.

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