Analysis of Sessions Amendment to Deny the EITC to People Working Here Legally As A Result of the Senate Immigration Bill (Amendment # 1234)

Publication Date: June 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Aviva Aron-Dine

Research Area: Banking and finance; Population and demographics

Keywords: Economic projections; Citizenship; International migration; Tax code

Type: Report

Abstract:

Undocumented immigrants already are ineligible for the EITC. The Sessions amendment would deny this important tax credit to low-income workers who have legal status. This approach is inequitable and unwise. It would require legalized workers and guest workers to pay income and payroll taxes in the same manner as other workers, but would deny them the use of a tax credit that it intended to offset the heavy tax burdens that low-income working families would otherwise face from these taxes. These workers would effectively be taxed at much higher rates than other workers with the same family situations and adjusted gross incomes, a sharp departure from the longstanding federal tax principle of applying the same rules to everyone.