Source: House Representative Doug LaMalfa (R-CA, 1st)
Washington, D.C. - September 13, 2017 (The Ponder News) -- Congressman Doug LaMalfa (R-Richvale) issued the following statement after a federal audit found that the Obama Administration improperly used $84 million in taxpayer dollars on the delta tunnels project.
LaMalfa said: “The use of taxpayer dollars by the Obama Administration to improperly fund Governor Brown’s pet delta tunnel project is unacceptable. The state of California and the federal government lied to Congress and stole millions of hard-earned dollars from taxpayers – who ended up paying for a large portion of the project’s planning costs without their knowledge. California needs to repay every penny to the federal government immediately. The Bureau of Reclamation needs to explain to Congress how and why this happened and the employees and appointees who carried it out must be held responsible. Lying to Congress and the American people cannot be tolerated.”
Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.
It's not like they weren't warned last year.
The Unpopular Truth
Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts
Wednesday, September 13, 2017
Sunday, September 3, 2017
Raise More than a Quarter Trillion Dollars of Tax Revenue by Ending Tax Subsidies for Unauthorized Employment of Illegal Aliens
Source: Center for Immigration Studies
Washington, D.C. - September 3, 2017 (The Ponder News) -- Aliens enter the United States without authorization for many reasons, but for most of them the goal is to secure employment at much higher wages than are available in their native countries. While breaking the law provides very significant economic benefits to these illegal workers and to the businesses that hire them, it comes at a cost to American workers. According to Harvard economist George Borjas, recent empirical research indicates that American workers suffer a reduction of $99 billion to $118 billion in annual wages because of illegal immigration.1
The economic rewards of unauthorized employment of aliens are not limited to the higher wages of the illegal workers and the lower labor costs of their employers. Unauthorized alien workers and their employers also enjoy multi-billion dollar tax deductions and tax credits that were enacted into law for the benefit of law-abiding workers and businesses.
When Congress returns from summer recess on September 5, it is expected to focus attention on a major reform of the federal income tax system, including a combination of lower rates and other tax incentives to families and to businesses. The largest challenge facing tax reformers is finding sufficient additional revenue to pay for the tax cuts and tax incentives they promised to the people who elected them. In fairness to the American families and businesses to whom these tax cuts have been promised, and in particular to the American families whose household incomes have been diminished by illegal immigration, Congress should consider eliminating unwarranted tax breaks to unauthorized alien workers and their employers.
Each of the following reforms — one that eliminates a tax subsidy for employers of unauthorized aliens and the other that eliminates a tax subsidy for the unauthorized workers — comes with an estimate of the additional revenues that would be raised by the reform. Together they could raise $296 billion over 10 years — more than a quarter-trillion dollars.
1. No Deduction for Wages Paid to Illegal Aliens. Section 162(e) of the Internal Revenue Code denies a deduction for "illegal payments". Even though it is illegal to employ unauthorized alien workers, the IRS has ruled that section 162(e) does not apply to the wages paid to those aliens, even if the employer knowingly broke the law.2 On January 3, 2017, Rep. Steve King and eight other members of Congress introduced H.R. 176, the New Illegal Deduction Elimination Act, Section 2 of which would amend section 162(e) to clarify that no deduction is allowed for wages paid to unauthorized alien workers. H.R. 176 provides employers a "safe harbor", allowing a deduction to employers that used the Department of Homeland Security's free, online E-Verify system to confirm the employee's eligibility to work.
The amount of wages paid to unauthorized alien workers cannot be known with certainty. One of the most extensive studies of unauthorized immigrants in the United States was conducted by the Pew Hispanic Center in 2009.3 According to that study, there were approximately 8.3 million undocumented immigrants in the U.S. labor force,4 a figure that Pew more recently estimated had fallen to 8.0 million.5 Pew estimated the median household income of unauthorized worker families to be approximately $36,000 and that there were approximately 1.75 workers per household, implying median per-worker earnings of $20,571.6 Multiplying Pew's estimated number of unauthorized alien workers by the earnings-per-worker estimate yields an estimated total of wages paid to unauthorized alien workers of approximately $165 billion.
Many unauthorized workers are employed in the "underground economy", i.e., by households and other employers that are not reporting or paying payroll taxes and presumably are not deducting the wages. A 2013 report by the Social Security Administration estimated that, of approximately seven million alien workers in various irregular work statuses in 2010, approximately 3.1 million (44 percent) had Social Security numbers (mostly false or fraudulently secured), while approximately 3.9 million (56 percent) were working in the "underground economy"7 On the assumption that employers reported payroll taxes and claimed wage expense deductions only for the 44 percent of unauthorized workers who could produce an SSN, and that most employers deducted wages at or near the corporate tax rate of 35 percent, we estimate that disallowing a deduction for wages paid to unauthorized alien workers would increase federal tax revenues by approximately $25.4 billion per year (35 percent x 44 percent x $165 billion), or $254 billion over 10 years.
2. Deny Refundable Tax Credits to Illegal Aliens. Section 24(a) of the Internal Revenue Code allows a $1,000 per-child tax credit for taxpayer's whose earnings fall below a specified threshold. The Child Tax Credit is refundable to the extent it exceeds the taxpayer's tax liability, in which case it is referred to as the Additional Child Tax Credit or ACTC. A 2011 report by the U.S. Treasury Inspector General for Tax Administration explained that aliens authorized to work in the United States are required to obtain a Social Security number (SSN).8 For aliens who need to file U.S. federal tax returns for other reasons, such as to claim refunds of withholding tax on dividends, the IRS issues Individual Tax Identification Numbers (ITINs). Unfortunately, according to the inspector general, the IRS had been permitting aliens to claim ACTCs on returns that reported an ITIN rather than a Social Security number.
The payment of ACTCs to illegal aliens is arguably a direct violation of the Personal Responsibility and Work Opportunity Act of 1996 ("PRWOA"), which expressly provides that an illegal alien "is not eligible for any Federal public benefit." The IRS has applied the PRWOA rule to prohibit payments of Earned Income Tax Credits to ITIN filers, but based on a questionable interpretation of the law has allowed ITIN filers refunds of ACTCs.9
According to the Inspector General, "[b]ased on claims made in Processing Year 2010, disallowance of the ACTC to filers without a valid SSN would reduce Federal outlays by approximately $8.4 billion over 2 years," i.e., $4.2 billion per year. Although the inspector general's figures are based on 2010 fiscal data, Treasury Department tax expenditure estimates indicate that the total child tax credit expenditure was virtually unchanged between 201010 and 2017.11 Accordingly, based on the inspector general's report, we estimate that limiting the Child Tax Credit to taxpayers with Social Security numbers would increase federal tax revenues by approximately $4.2 billion per year, or $42 billion over 10 years.
Washington, D.C. - September 3, 2017 (The Ponder News) -- Aliens enter the United States without authorization for many reasons, but for most of them the goal is to secure employment at much higher wages than are available in their native countries. While breaking the law provides very significant economic benefits to these illegal workers and to the businesses that hire them, it comes at a cost to American workers. According to Harvard economist George Borjas, recent empirical research indicates that American workers suffer a reduction of $99 billion to $118 billion in annual wages because of illegal immigration.1
The economic rewards of unauthorized employment of aliens are not limited to the higher wages of the illegal workers and the lower labor costs of their employers. Unauthorized alien workers and their employers also enjoy multi-billion dollar tax deductions and tax credits that were enacted into law for the benefit of law-abiding workers and businesses.
When Congress returns from summer recess on September 5, it is expected to focus attention on a major reform of the federal income tax system, including a combination of lower rates and other tax incentives to families and to businesses. The largest challenge facing tax reformers is finding sufficient additional revenue to pay for the tax cuts and tax incentives they promised to the people who elected them. In fairness to the American families and businesses to whom these tax cuts have been promised, and in particular to the American families whose household incomes have been diminished by illegal immigration, Congress should consider eliminating unwarranted tax breaks to unauthorized alien workers and their employers.
Each of the following reforms — one that eliminates a tax subsidy for employers of unauthorized aliens and the other that eliminates a tax subsidy for the unauthorized workers — comes with an estimate of the additional revenues that would be raised by the reform. Together they could raise $296 billion over 10 years — more than a quarter-trillion dollars.
1. No Deduction for Wages Paid to Illegal Aliens. Section 162(e) of the Internal Revenue Code denies a deduction for "illegal payments". Even though it is illegal to employ unauthorized alien workers, the IRS has ruled that section 162(e) does not apply to the wages paid to those aliens, even if the employer knowingly broke the law.2 On January 3, 2017, Rep. Steve King and eight other members of Congress introduced H.R. 176, the New Illegal Deduction Elimination Act, Section 2 of which would amend section 162(e) to clarify that no deduction is allowed for wages paid to unauthorized alien workers. H.R. 176 provides employers a "safe harbor", allowing a deduction to employers that used the Department of Homeland Security's free, online E-Verify system to confirm the employee's eligibility to work.
The amount of wages paid to unauthorized alien workers cannot be known with certainty. One of the most extensive studies of unauthorized immigrants in the United States was conducted by the Pew Hispanic Center in 2009.3 According to that study, there were approximately 8.3 million undocumented immigrants in the U.S. labor force,4 a figure that Pew more recently estimated had fallen to 8.0 million.5 Pew estimated the median household income of unauthorized worker families to be approximately $36,000 and that there were approximately 1.75 workers per household, implying median per-worker earnings of $20,571.6 Multiplying Pew's estimated number of unauthorized alien workers by the earnings-per-worker estimate yields an estimated total of wages paid to unauthorized alien workers of approximately $165 billion.
Many unauthorized workers are employed in the "underground economy", i.e., by households and other employers that are not reporting or paying payroll taxes and presumably are not deducting the wages. A 2013 report by the Social Security Administration estimated that, of approximately seven million alien workers in various irregular work statuses in 2010, approximately 3.1 million (44 percent) had Social Security numbers (mostly false or fraudulently secured), while approximately 3.9 million (56 percent) were working in the "underground economy"7 On the assumption that employers reported payroll taxes and claimed wage expense deductions only for the 44 percent of unauthorized workers who could produce an SSN, and that most employers deducted wages at or near the corporate tax rate of 35 percent, we estimate that disallowing a deduction for wages paid to unauthorized alien workers would increase federal tax revenues by approximately $25.4 billion per year (35 percent x 44 percent x $165 billion), or $254 billion over 10 years.
2. Deny Refundable Tax Credits to Illegal Aliens. Section 24(a) of the Internal Revenue Code allows a $1,000 per-child tax credit for taxpayer's whose earnings fall below a specified threshold. The Child Tax Credit is refundable to the extent it exceeds the taxpayer's tax liability, in which case it is referred to as the Additional Child Tax Credit or ACTC. A 2011 report by the U.S. Treasury Inspector General for Tax Administration explained that aliens authorized to work in the United States are required to obtain a Social Security number (SSN).8 For aliens who need to file U.S. federal tax returns for other reasons, such as to claim refunds of withholding tax on dividends, the IRS issues Individual Tax Identification Numbers (ITINs). Unfortunately, according to the inspector general, the IRS had been permitting aliens to claim ACTCs on returns that reported an ITIN rather than a Social Security number.
The payment of ACTCs to illegal aliens is arguably a direct violation of the Personal Responsibility and Work Opportunity Act of 1996 ("PRWOA"), which expressly provides that an illegal alien "is not eligible for any Federal public benefit." The IRS has applied the PRWOA rule to prohibit payments of Earned Income Tax Credits to ITIN filers, but based on a questionable interpretation of the law has allowed ITIN filers refunds of ACTCs.9
According to the Inspector General, "[b]ased on claims made in Processing Year 2010, disallowance of the ACTC to filers without a valid SSN would reduce Federal outlays by approximately $8.4 billion over 2 years," i.e., $4.2 billion per year. Although the inspector general's figures are based on 2010 fiscal data, Treasury Department tax expenditure estimates indicate that the total child tax credit expenditure was virtually unchanged between 201010 and 2017.11 Accordingly, based on the inspector general's report, we estimate that limiting the Child Tax Credit to taxpayers with Social Security numbers would increase federal tax revenues by approximately $4.2 billion per year, or $42 billion over 10 years.
Monday, August 28, 2017
Tax Relief a Priority
by Senator Mike Rounds
Over the past few months, we’ve seen the U.S. economy improve. In July, employers added 209,000 jobs, bringing the unemployment rate down to 4.3 percent. However, wages remain stagnant and economic growth has hovered at 2 percent for the past 10 years, a full percentage point lower than the historic post-World War II average. According to the Joint Economic Committee (JEC), this has cost families an average of $8,600 in income annually. Also according to the JEC, economic growth will remain at 2 percent under our current policies.
This underscores the need for a pro-growth tax policy that creates jobs, increases our competitiveness overseas and gives our economy a much-needed jolt. Our current tax code is far too complicated – it is more than 74,000 pages in length and takes Americans 8.1 billion hours annually to complete. I support the ongoing efforts by the tax-writing committees in Congress to take on comprehensive tax reform. When we return to Washington in September, we expect to ramp up these efforts. I look forward to working with my colleagues to lower the rates for South Dakota families, rein in the IRS and provide long-term certainty in our tax code.
It has been more than 30 years since our tax code was reformed. Since then, other countries have lowered their rates and become more competitive, while our tax code has barely changed. The average corporate tax rate in the U.S. is 39 percent, compared to an average of 25 percent by our foreign competitors. It is time to reform the tax code and lower the rates – a plan that we know will help our economy because we’ve seen it work in the past.
During both the Kennedy and Reagan presidencies, we saw a reduction in regulations and taxes. In turn, the economy prospered and flourished under their respective administrations. They knew that individual citizens know the best way to spend their own money, and they certainly don’t need Washington telling them what to do with it.
While I continue to advocate for comprehensive tax reform, I recognize the complexity in passing comprehensive tax reform. Earlier this year, I introduced a tax relief plan that would reduce the average South Dakota family’s tax burden by about 16 percent. My plan calls for a simple 2 point rate cut across-the-board for each tax bracket. By lowering the tax rate for all, we will be able to provide direct and immediate relief to hardworking families and shake up our economy. This will result in a more prosperous economy for all Americans.
We have our work cut out for us in the coming months, and I am ready to work with every senator, on either side of the aisle, to get it done. When Americans are free to spend their money as they see fit—whether that’s sending kids to college, buying a new home, saving for retirement or starting a new business—our economy will benefit. And when our economy is healthy, every American will feel the positive effects.
Over the past few months, we’ve seen the U.S. economy improve. In July, employers added 209,000 jobs, bringing the unemployment rate down to 4.3 percent. However, wages remain stagnant and economic growth has hovered at 2 percent for the past 10 years, a full percentage point lower than the historic post-World War II average. According to the Joint Economic Committee (JEC), this has cost families an average of $8,600 in income annually. Also according to the JEC, economic growth will remain at 2 percent under our current policies.
This underscores the need for a pro-growth tax policy that creates jobs, increases our competitiveness overseas and gives our economy a much-needed jolt. Our current tax code is far too complicated – it is more than 74,000 pages in length and takes Americans 8.1 billion hours annually to complete. I support the ongoing efforts by the tax-writing committees in Congress to take on comprehensive tax reform. When we return to Washington in September, we expect to ramp up these efforts. I look forward to working with my colleagues to lower the rates for South Dakota families, rein in the IRS and provide long-term certainty in our tax code.
It has been more than 30 years since our tax code was reformed. Since then, other countries have lowered their rates and become more competitive, while our tax code has barely changed. The average corporate tax rate in the U.S. is 39 percent, compared to an average of 25 percent by our foreign competitors. It is time to reform the tax code and lower the rates – a plan that we know will help our economy because we’ve seen it work in the past.
During both the Kennedy and Reagan presidencies, we saw a reduction in regulations and taxes. In turn, the economy prospered and flourished under their respective administrations. They knew that individual citizens know the best way to spend their own money, and they certainly don’t need Washington telling them what to do with it.
While I continue to advocate for comprehensive tax reform, I recognize the complexity in passing comprehensive tax reform. Earlier this year, I introduced a tax relief plan that would reduce the average South Dakota family’s tax burden by about 16 percent. My plan calls for a simple 2 point rate cut across-the-board for each tax bracket. By lowering the tax rate for all, we will be able to provide direct and immediate relief to hardworking families and shake up our economy. This will result in a more prosperous economy for all Americans.
We have our work cut out for us in the coming months, and I am ready to work with every senator, on either side of the aisle, to get it done. When Americans are free to spend their money as they see fit—whether that’s sending kids to college, buying a new home, saving for retirement or starting a new business—our economy will benefit. And when our economy is healthy, every American will feel the positive effects.
Tuesday, August 1, 2017
Trump’s tax plan has aggressive timeline, no details
Bullhead City: Mohave Daily News
The Trump administration started its public push Monday to overhaul taxes but, just as with health care, the White House lacks a detailed plan to promote to voters.
What it has, instead, is an aggressive deadline.
The White House hopes to have the House pass a tax overhaul in October that the Senate could then approve in November, said Marc Short, the White House director of legislative affairs. Under this plan, President Donald Trump would travel the country to rally support for the intended tax cuts, while conservative activists and business groups act as valuable allies to encourage and pressure Congress into clearing the first major tax code rewrite since 1986.
The Trump administration started its public push Monday to overhaul taxes but, just as with health care, the White House lacks a detailed plan to promote to voters.
What it has, instead, is an aggressive deadline.
The White House hopes to have the House pass a tax overhaul in October that the Senate could then approve in November, said Marc Short, the White House director of legislative affairs. Under this plan, President Donald Trump would travel the country to rally support for the intended tax cuts, while conservative activists and business groups act as valuable allies to encourage and pressure Congress into clearing the first major tax code rewrite since 1986.
Read more...
Friday, July 28, 2017
Pelosi Statement on Republicans’ Latest Empty Statement on Taxes
Washington, D.C. - July 28, 2017 (The Ponder News) -- Democratic Leader Nancy Pelosi released the following statement after the White House, Senate and House Republicans released a detail-free joint statement on taxes:
“More than six months into the Trump Administration, and Republicans still have no real details for tax reform. Today’s threadbare joint statement shows Republicans continuing to flounder instead of inviting bipartisan progress on real tax reform for hard-working Americans.
“Republicans latest statement is light on details, but their goals have been clear all along: hand massive tax cuts to big corporations and the wealthiest, paid for on the backs of Social Security, Medicare, Medicaid and the middle class. Republicans will ransack the education and health care of hard-working Americans to fund deficit-busting tax breaks for billionaires.
“Democrats believe we need real tax reform that creates jobs for hard-working Americans and fuels economic growth, while ensuring the wealthy pay their fair share and ending tax breaks for big corporations hiding profits offshore. We will continue to oppose Republicans’ ceaseless trickle-down agenda.”
Wednesday, April 19, 2017
Taxes
U.S. Chamber of Commerce Welcomes Trump Administration’s Tax Reform Outline
U.S. Chamber of Commerce
April 26, 2017
“As an advocate for pro-growth tax reform, the U.S. Chamber welcomes the White House’s strong push today to advance tax reform. We’ve got a once-in-a-generation chance to do tax reform, and if we do it right, it can be the single most important step our leaders take to drive economic growth.
Read more...
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RETAILERS RESPOND TO PRESIDENT TRUMP’S TAX PLAN
Retail Industry Leaders Association (RILA)
April 26, 2017
"We welcome President Trump's outline for tax reform. Retailers pay among the highest effective tax rates of all U.S. businesses and provide jobs to more Americans than any other industry. Reform that substantially lowers the rates that retailers ultimately pay will generate job growth and benefit American families in countless ways. The President's tax reform plan recognizes the importance of a globally competitive tax code that allows American businesses to compete around the world and grow, and for consumers to have more money to save or spend. We will continue to fight back against the harmful border adjustment tax proposed by House Republicans and look forward to working with President Trump to exact pro-growth tax reform this year," said Brian Dodge, senior executive vice president for public affairs."
Read more...
RNC Statement on President Trump’s Tax Reform Proposal
Republican Party
April 26, 2017
“This proposal represents a bold step to enact much needed tax reform,” said Chairwoman McDaniel. “For too long businesses and people in this country have been burdened by an unnecessarily complex and overreaching tax code that has stifled wage and job growth. President Trump’s proposal will go a long way toward restoring economic prosperity by prioritizing middle class tax cuts, enacting business tax reform, and encouraging investment and job growth.”
Read more...
COUNCIL ON FOUNDATIONS STATEMENT REGARDING WHITE HOUSE TAX CUT STATEMENT
Council on Foundations
APRIL 26, 2017
“Today’s White House statement on its tax reform position clarifies the first step in what will be a long process towards meaningful tax reform. We are especially pleased to see the White House recognize the importance of the charitable deduction. We look forward to seeing even greater clarity from the White House in the coming months on its position."
Read more...
CLUB FOR GROWTH ON TRUMP TAX PROPOSAL: THIS IS WHAT PRO-GROWTH TAX REFORM LOOKS LIKE
Club for Growth
April 26th, 2017
“The Trump Administration’s tax reform proposal is massively pro-growth,” said Club for Growth president David McIntosh. “Cutting rates and eliminating deductions will put the U.S. squarely on the path of sustained economic growth, and allowing small and mid-size businesses to use a new 15% business tax rate is crucial to that growth. This is the tax plan that the American people supported when they elected President Trump, so House Republicans would do well to give it their full support.”
Read more...
Tax cuts increase take-home income, grow economy and create jobs
Americans for Limited Government
April 26, 2017
“President Trump’s outline for cutting taxes for individuals makes sense and will lead to most Americans enjoying more take home pay than they do today. Lowering the number of tax brackets and the associated top and lowest rates, along with increasing the standard deductions, keeping the home mortgage and philanthropy deductions while changing the maximum deductibility of state and local income taxes makes sense.
Read more...
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TESTER SPONSORS BIPARTISAN LEGISLATION TO ELIMINATE TAXPAYER-FUNDED PORTRAITS OF GOVERNMENT OFFICIALS
Senator Jon Tester - (D - MT)
April 20, 2017
Tester's bipartisan Eliminating Government-Funded Oil-Paintings (EGO) Act will end a long-time perk for politicians by prohibiting federal agencies from using taxpayer dollars to commission official portraits of government employees. The federal government has spent hundreds of thousands of dollars since 2010 on official oil-painting portraits of former employees.
Read more...
Taxpayers Pay Twice
Senator Rand Paul - (R - KY)
April 20, 2017
Americans collectively spend countless hours pouring over paperwork to make sure their taxes are correct, and they can keep as much of their own money as possible. While one would hope the agency that collects those taxpayer funds would show the same diligence, today’s Waste Report tells the story of an IRS that failed to recover over $76 million in “unallowable expenses” to government contractors. Though the IRS spent nearly $6 million more of taxpayers’ money for audits to identify those costs, the agency often failed to take basic steps in response and lacked vital details needed to thoroughly track and evaluate the recovery efforts.
Read more...
Shelby Introduces Legislation to Establish Flat Tax
Senator, Richard C.Shelby - (R - AL)
April 18, 2017
“On Tax Day, the American people are reminded that our nation’s tax code is unnecessarily complex, confusing, and inefficient. The SMART Act is a straightforward solution that would require taxpayers to only file a simple postcard size return, which would save Americans time and money. The SMART Act would also allow businesses to redirect resources away from tax compliance and instead focus on expanding their businesses and creating jobs.”
Read more...
On Tax Day, Senators Ask Government Watchdog to Review Tax-Time Products
Senator Tammy Ducksworth (D - IL)
April 18, 2017
U.S. Senator Tammy Duckworth (D-IL) joined the Ranking Member of the Subcommittee on Financial Institutions and Consumer Protection, U.S. Senator Elizabeth Warren (D-MA), and U.S. Senator Al Franken (D-MN) today in asking the Government Accountability Office (GAO) to conduct a review of the tax-time financial products most commonly used by taxpayers, as well as the transparency of and fees charged for these financial products.
Read more...
Not appropriate for Consumer Financial Protection Bureau to engage in PR piggybacking
Senator Michael B. Enzi - (R - WY)
April 11, 2017
“We do not believe the CFPB has the authority to use the IRS as a conduit to solicit Americans’ stories about money. Additionally, since the CFPB is funded by a transfer of non-appropriated funds from the Federal Reserve System’s combined earnings, we question whether it is appropriate to use taxpayer dollars …to advertise the CFPB,” the senators wrote. “The CFPB is supposed to be an independent organization, we do not believe the Treasury Department should be soliciting information on behalf of the entity. We respectfully request that Treasury’s Bureau of Fiscal Service curtail this practice...”
Read more...
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