This is something about that people in the tax industry have known for a little while, and only occasionally receives some press.
On Tuesday, the Treasure Inspector General for Tax Administration released a report that the IRS paid nearly $14 billion in fraudulent claims for the Earned Income Tax Credit.
Over the last 10 years, that amounts to $132.6 billion, or about a quarter of all claims.
The EIC is not the only abused tax credit. The IRS gives out about $4.2 billion out to illegal immigrants for the Additional Child Tax Credit. It seems you can claim children that live in other countries and nobody lifts a finger to check it out.
At issue here are the federal child tax credits that can be claimed by persons with dependent children under age 17. Some Democrats are already defending these child tax credit payments that have gone to those without a valid Social Security number, accusing Republicans who want to end them of a heartless attack on children.
Of course they are. This is what they always do when someone tries to come up with a sensible solution. Aren't they the best people? They're also the ones that are always complaining you don't pay enough in taxes.
President Obama could help, but instead he made it easier to fraudulently collect these credits, temporarily at first in 2009, and permanently in 2012.