[Congressional Record Volume 140, Number 116 (Wednesday, August 17, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              PREVENTING FRAUD IN 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. Madam Speaker, I rise to draw the attention of the House 
to H.R. 4225, a bill that I introduced to eliminate fraud in the earned 
income credit for low-income working Americans.
  The earned income credit [EIC] was established to increase the amount 
of income which low-income workers keep after taxes. However, there is 
ample evidence that EIC is being abused when filers 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 were not eligible for it. As the EIC's cost nearly doubles 
to $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. A recent cost estimate by the IRS and 
OMB determined that this commonsense fraud-detection contained in the 
bill would save an average of 7.8 billion dollars. We cannot stand idly 
by while a flawed program continues to sap public funds.
  Madam Speaker, I urge my colleagues to cosponsor and support this 
timely legislation.

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