Legislators advocate nearly tripling fraud and waste

March 23rd, 2012 by Joe Kristan

The leaders in the Iowa Senate are pushing to increase Iowa’s Earned Income Tax Credit from 7% of the federal credit to 20%.  A report on the federal credit from the Treasury Inspector General for Tax Administration should give them pause:

The IRS estimates that 21 to 26 percent of EITC payments were issued improperly in Fiscal Year 2011. This equates to $13.7 billion to $16.7 billion in EITC improper payments.

It should give them pause, but it won’t.

Related: Incentives to stay poor

 TIGTA link via the TaxProf



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