Action Alert

Fix to Economic Stimulus Package Still in Limbo
Call Your Members of Congress Now!

January 31, 2008

As we told you yesterday, the economic stimulus package going through Congress right now has loopholes that allow the IRS to issue tax rebate checks to illegal aliens. Yesterday, the Senate Finance Committee took up the Senate version of the economic stimulus package. In the hearing, Senators agreed in principal to fix these loopholes, but the language has not been officially released and adopted. WE MUST THEREFORE KEEP PRESSURE ON CONGRESS TO ACT!!!

It is important to note that the language of the House bill (which is also the basis for the Senate bill) does not expressly state that illegal aliens are eligible for the tax rebate. The problem arises because nothing in the legislation expressly tells the IRS to weed out false and fraudulent social security numbers already in the system before issuing checks. It also allows some individuals using individual taxpayer identification numbers (ITINs) to claim rebate checks. ITINs are issued by the IRS regardless of immigration status and are often used by illegal aliens to file taxes. The irony here, of course, is that many illegal aliens file tax returns because they fear the IRS, but clearly not the Department of Homeland Security.

During yesterday's committee hearing, Senator John Ensign (R-NV) raised the issue that the economic stimulus legislation (based on the House version, H.R.5140) would allow the IRS to issue rebate checks to illegal aliens. This generated a discussion in which a number of Senators agreed this loophole must be closed. The committee members then agreed in concept to amendment to the bill that:

  • requires recipients to be lawfully present;
  • prohibits the issuance of rebates to individuals filing with individual taxpayer identification numbers (ITINs); and
  • requires the IRS to check taxpayer names and social security numbers against no-match lists.

Again, while this amendment was agreed to in principle, committee staff must still draft the language and insert it into the final version of the bill.  With the agreement in concept, the Senate Finance Committee passed the economic stimulus package by a vote of 14-7. The bill now goes to the Senate floor where it may be taken up as early as TONIGHT!!! If the Senate passes language that addresses the loophole, the House must also approve the change. 

FAIR therefore urges all members, activists, and friends to call their Senators and Representatives IMMEDIATELY and tell them this loophole must be fixed before Congress passes any economic stimulus legislation!!! Tell them Congress must act to end the taxpayer subsidy of illegal immigration. 

To find the number of your Senators or Representatives, click here.

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