President Barack Obama quietly killed a draft tax-cut because the GOP leadership wouldn’t agree to his demand that valuable tax breaks be given to millions of illegal immigrants, according to a Politico article about the secret negotiations.
Just before Thanksgiving, “the deal fell apart just as it seemed to be coming together… [because] Republicans worried undocumented immigrants targeted by [Obama’s Nov. 21 amnesty] would begin claiming the credits,” Politico reported.
The GOP leadership’s reluctance to award tax-breaks to illegals suggests top leaders may use the required December budget bill to deny funds to operate Obama’s promised amnesty. So far, GOP leaders have not said if they will block the amnesty funds — despite growing GOP grassroots pressure — partly because Democrats are threatening to block the complete budget if the amnesty is blocked.
The now-dead tax bill, dubbed the “tax extenders package,” is a grab-bag of tax breaks that are usually passed late in every congressional session. If the bill is not passed, businesses and voters will both face tax increases.
This year’s draft bill was expanded to include more tax-breaks for businesses, and was reputedly valued at more than $400 billion over 10 years.
Politico’s report said Democratic senators initially offered to approve the GOP’s demand for business-boosting tax cuts if the GOP agreed to extend the popular Earned Income Tax Credit for poor Americans.
But GOP leaders stepped back from the deal because they recognized that Obama planned to award the EITC money to illegals covered by his Nov. 21 executive order.
Senate leaders — such as Nevada Sen. Harry Reid and New York Sen. Chuck Schumer — then agreed to trade the business-tax breaks for tax breaks that would boost revenues for state and local governments.
But other Democratic senators denounced the deal, and also refused to reform the EITC system to exclude Obama’s illegals.
According to the IRS, two parents with three or more children would receive up to $6,143 in 2014 if they earn less than $46,997. Parents who earn less than the income threshold would get $3,305 if they have one child, and $5,460 if they have two children.
Most illegal immigrant households have very low income, and pay little in taxes. For example, in 2011, roughly 22 percent of immigrant households — both legal and illegal — were classified as living in poverty. In contrast, only 13 percent of American households were in poverty.
Also, the EITC program is already poorly monitored and may be subject to large amounts of fraud, according to critics.
Read complete article via Obama Kills Tax Cut Because It Didn’t Help Illegals | The Daily Caller.