[Congressional Record Volume 151, Number 162 (Friday, December 16, 2005)]
[Senate]
[Pages S13809-S13810]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself and Ms. Snowe):
  S. 2139. A bill to amend the Internal Revenue Code of 1986 to 
simplify the earned income tax credit eligibility requirements 
regarding filing status, presence of children, investment income, and 
work and immigrant status; to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, today I am pleased to introduce the 
Earned Income Tax Credit Simplification Act. This legislation will 
greatly improve one of our Nation's most important antipoverty programs 
and streamline one of the most complicated sections of our income tax 
code. And I am extremely pleased that my good friend from Maine, 
Senator Olympia Snowe, has agreed to be an original cosponsor of this 
bill. I look forward to working with her, as members of the Senate 
Finance Committee, to enact this important tax simplification proposal.
  In 2003, almost 21 million hard-working Americans benefited from the 
earned income tax credit, including 141,707 in my own State of West 
Virginia. Many of those serving in our Armed Forces benefit from the 
EITC. The EITC rewards hard work and helps these families make ends 
meet. However, the eligibility criteria for claiming the credit are so 
complicated that many people legitimately entitled to benefit from the 
credit do not even realize it. And unfortunately, too many erroneous 
claims occur. The tax credit should not be so complicated that cash-
strapped families need the help of an accountant to file their taxes.
  The Earned Income Tax Credit Simplification Act would make four 
important changes to the eligibility requirements of the credit. First, 
it would simplify the ``abandoned spouse'' rule so that custodial 
parents who are separated but not divorced would be able to claim the 
credit. Second, it would allow a taxpayer living in the same house with 
a qualifying child but not claiming that child for the EITC benefit to 
qualify for EITC benefits available to taxpayers without children. 
Third, the bill would eliminate the qualifying investment income test 
for EITC claimants. Finally, the bill would make sure that only 
immigrants who comply with all of the immigration rules would qualify 
for the EITC, preventing people who are not allowed to

[[Page S13810]]

work in the United States from claiming the credit.
  These are commonsense reforms based on recommendations in the budget 
submitted to Congress by the Bush administration. I hope that they can 
be enacted quickly so that taxpayers whom Congress intended to help 
with the EITC will be able to claim the benefits without unnecessary 
and intimidating paperwork. I look forward to working with my 
colleagues to enact this legislation.
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