Obama Order Could Mean Refund Checks for Immigrants in U.S. Illegally

Kevin G. Hall, McClatchy DC, March 4, 2015

President Barack Obama’s executive order on immigration will allow people who’ve been working in the country without documents to retroactively file tax returns for the past three years and collectively get about $1.7 billion in refundable tax credits over 10 years.

It’s a little known consequence of the executive order on immigration announced shortly before Thanksgiving, and whose implementation is presently held up in the courts.

Republican lawmakers are scrambling to pass legislation that would limit the ability of the workers to file tax returns for years before their immigration status changed under the executive order and qualify for a tax refund that on average for other taxpayers has been about $2,300 per person.

Under Obama’s executive order, eligible workers would be given Social Security numbers, and that would allow them to work legally while the order is in effect. They could file a 1040 tax return, or amended returns for three years prior–the statute of limitations for amending a tax return–and potentially qualify for the refundable Earned Income Tax Credit.

“Those who were working illegally in the United States shouldn’t be rewarded for doing so,” Sen. Charles Grassley, R-Iowa, said in a statement to McClatchy. “That would have the effect of allowing retroactive benefits. My proposal would prohibit those granted deferred action from claiming the EITC for any year they were working without authorization in the United States.”

McClatchy obtained an estimate by the congressional Joint Committee on Taxation, done for Grassley and Senate Finance Committee Chairman Orrin Hatch, R-Utah. It shows the additional EITC refunds under the program could cost taxpayers $1.7 billion over 10 years, almost all of it in the first five years.

Obama’s immigration order overall is actually expected to bring in almost $20 billion in new revenue over a 10-year period after implementation, according to the nonpartisan Congressional Budget Office. That’s because new immigrants would be paying into Social Security and having taxes withheld from paychecks.

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  • james AZ

    ROBIN HOOD OF ILLEGAL ALIENS in 21 century……

  • A Freespeechzone

    Hell, illegals are already claiming and getting deductions for relatives outside the USA–and the IRS won’t do a damned thing to stop it….they just ‘look the other way’.

    Don’t try that as a Citizen…..

  • I’m so glad to find this out, when I wound up owing more on my Federal return than I thought I would. As it is, I engineer my withholding such that I owe a little bit during tax season; I don’t want to give the Federal and Missouri governments interest-free loans. Except what kicked in this year was ObamaDontCare and its individual mandate.

    People who brag about their big tax refunds are doing nothing more than admitting that they’re stupid and they don’t understand the concept of time value of money.

  • Reynardine

    I wonder if they file taxes in Mexico too… I bet they suck from that teat hard. No wonder the Criollos want them gone and into El Norte forever.

  • Petronius

    My homie g! Dis stuff not fair to da bruthas and sistahs ’cause we been waitin’ in line too long time.

    Fo’ shizzle my nizzle.

    Let’s get so’ mo’ dat free stuff fo’ de homies first, bro.

    Dem raciss ass crackas gots nuff stuff to do fo’ all us homies, man. Da whole hood gonna get well, bro.

  • Alex Dihes

    My Talmud
    On the levels of secrecy
    In France, one plant wouldn’t know what does another plant of the same company.

    In Germany, one laboratory doesn’t know what the adjacent lab does.

    In the US, an employee does not know what another one at the next workbench does.

    In the White House, nobody knows what the president does.

  • Old Soldier

    “Obama’s immigration order overall is actually expected to bring in
    almost $20 billion in new revenue over a 10-year period after
    implementation, according to the nonpartisan Congressional Budget
    Office. That’s because new immigrants would be paying into Social
    Security and having taxes withheld from paychecks.”

    Of course the huge, gaping obvious fallacy in this “reasoning” is that illegal immigration is going to stop once we grant blanket amnesty, reward the invaders with tax refunds on taxes they didn’t pay, and continue to leave our border open.

    The Cheap Labor people want a continuous flow of new Cheap Labor to keep wages suppressed.

  • MekongDelta69

    “Taxpayers could shell out $1.7 billion to amnestied illegals.”

    Wait – I’ll take care of this. Let me check my back pockets.

    *checking

    *checking

    *checking

    Nope. Not there. Oh well. Maybe the bucks are in my other pants. I’ll be right back…

  • RacialRay

    Personally, I am looking forward to the fat refund coming my way for the 5 million new dependents I am claiming on my 1040 this year.

    Muchas gracias, Obama.

  • TruthBeTold

    A black woman actually called in to Washington Journal on c-span this morning ranting about this issue.

    She wanted to know why immigrants were getting money when blacks never got reparation money.

    • Hammerheart

      When is whitey going to get reparation money from Christian churches for forcing my Nordic ancestors to convert centuries ago?

    • Light from the East

      Do you think it’s a chance for us to incite more hatred between blacks and Hispanics if the current immigration policy is unstoppable?

      • Hammerheart

        They don’t need any help from external forces. LA used to be full of blacks before the Hispanics drove them out to San Bernardino county. It wasn’t a peaceful event. Your skin color is your uniform.

      • TruthBeTold

        I post remarks on other sites how blacks are being replaced as the most favored minority but blacks don’t care. They’re still fantasizing about the mythical black/brown coalition that’s going to take down the white man.

        By all means get the word out but 99% of blacks don’t get it. And even this woman only saw the issue of reparations and not the larger issue of Hispanics replacing blacks on every level.

  • Sanchodiablo

    There’s something way to low about the $1.7 billion figure. That’s only $340 each for the 5 million we’re talking about. They qualify for 4 years of EITC’s plus child credits. If they average 10k each it will add up to $50 billion. My guess is that they’ll exploit the honor system and average closer to 20k each.

  • E. Newton

    Here’s how it works. GM wants to sell more vehicles. Tyson Chicken wants to sell more chicken. Proctor & Gamble wants to sell more detergent. Coincidentally, the illegals want these things.

    The political class wants compliant voters. The illegals will be a compliant electorate.

    The political class will take the fruits of your labor, at the point of a gun and redistribute it to the illegals so they may buy these items. The illegals will vote for the political class they believe is feeding them.

    You and I are like ants. We are the political and business elite’s ant farm. With the illegals, the elites are merely adding more ants to their farm.

    • JackKrak

      That’s exactly right. People who should know better are always going on about how the business people want cheap labor but that’s only part of it. What they really want is more consumers in the market.

      I had my moment of clarity a few years ago standing in a JC Penney store. I looked around and realized that at least 20% of the customers in the store were originally from the more donkey and goat-intensive parts of the world but they were putting money in the cash registers just like I was. Without them, Penney’s bottom line would definitely take a hit. And at the end of the day, does JC Penney want a hundred thousand people living in the catchment area of each of their stores or, say, a hundred and thirty thousand?

      Now multiply that preference by Ford, McDonald’s, Exxon, CVS, Home Depot, Best Buy, Wal Mart, Nike and a thousand others.

      • E. Newton

        Well there are at least two of us that see it.

    • IstvanIN

      These people are a net drain on the economy for the simple fact that they are net tax consumers. The economy can not go on like this forever and will eventually collapse. Then we will be surrounded by uncivilzied savages who we can no longer pay off with various welfare goodies.

  • John Smith

    They already have their hands in our pockets, so what’s govt. actually helping them to pick our pockets yet another way? The outrage should’ve been the first time, not the next time.

  • I spent this morning making the shanks for harpoon, trident and fishing spear tips out of junk 5/16″ steel rod stock I had scrounged. I threaded one end of each so I could fit them into the modular sockets I have already made. I would rather use a threading die myself all morning than work to pay taxes just to pay for already threaded steel, covered with the zinc and cadmium that I hate welding (breathing cadmium fumes is double-plus ungood).

    I’m not going to work to support these parasites.

  • Who Me?

    Since the IRS, state taxes, property taxes, sales taxes and assorted other taxes take about 38% of my wages or a little more annually, I’d like to get some more back myself, but I will not loan it to them for what amounts to an interest-free loan. The original 13 American colonies revolted against the King of England for taxation of a far less percentage than what we pay now. Of course that was “taxation without representation”, but what would you call what we have now? The idiots in power certainly don’t represent ME!

  • Jason Lewis

    Hmm give em some sort of temporary amnesty via Executive Order. Have them pay some taxes and recieve some tax refunds. They’re setting up the argument. They’re gonna say these people live and work here and pay taxes and we allow them to and it’s not fair that they’re essentially second class citizens. We can’t do that. We must make them full legal voting citizens.