[Congressional Record Volume 140, Number 90 (Wednesday, July 13, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 13, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]


                              {time}  1050
 
             FRAUDULENT CLAIMS FOR THE EARNED INCOME CREDIT

  (Mr. LEHMAN asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. LEHMAN. Mr. Speaker, I rise in support of H.R. 4225, legislation 
which will be an important first step toward much-needed welfare reform 
for low-income working Americans. There is no question that current 
mechanisms for helping recipients must be tightened as an integral part 
of any major changes in the system.
  The earned income credit [EIC] is a refundable tax credit for people 
with children who have an income less than $23,050. The EIC was 
established to increase the amount of income which low-income workers 
keep after taxes. The credit allows welfare families to work their way 
out of poverty and off the welfare program. However, the EIC can be 
abused when the IRS allows certain filers who provide incomplete or 
erroneous information to receive the credit.
  While studies have shown that the earned income credit is an 
effective means of boosting low-income earners who work, they have also 
shown that nearly 1 in 3 of the 12.6 million families who received the 
EIC in 1990 may have been ineligible for it. As the EIC expands from an 
estimated $12 billion this year to about $25 billion in 1998, we must 
be sure that only eligible workers are receiving this tax break.
  Specifically, this legislation requires the IRS to verify the 
taxpayer and dependent identification number before they can receive 
the credit--no number, no credit. We should not move on to new and 
costly welfare programs before we fix the responsibility and 
accountability of existing multibillion-dollar programs for low-income 
Americans.
  Mr. Speaker, I urge my colleagues to support this timely legislation.

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