Grassley: Rushed Stimulus Package Leaves Taxpayers Facing Problems With Making Work Pay Tax Credit
M E M O R A N D U M
To: Reporters and Editors
Fr: Jill Gerber for Sen. Grassley, 202/224-6522
Re: Report on Making Work Pay Credit
Da: Monday, Nov. 16, 2009
November 16, 2009 - (RealEstateRama) — Sen. Chuck Grassley, ranking member of the Committee on Finance, today made the following comment on a new report saying that a $400 tax credit provided by the economic stimulus plan may leave more than 15.4 million Americans owing money to the IRS because of under-withholding from their paychecks. The Treasury Inspector General for Tax Administration (TIGTA) today released its review of the IRS’ administration of the making work pay credit. Recent reports have documented administrative problems with the homebuyer tax credit and the existing health care tax credit.
“This is another unfortunate example of what can happen when Congress and the White House rush through legislation like the stimulus without thinking through the consequences. People will get help this year and have it taken away next year and might even pay penalties. It amounts to a bait and switch for these taxpayers, and that’s not the way tax policy ought to treat people. This is also an example of how challenging it is to implement new tax laws. Various health reform bills require the IRS to keep track of who qualifies for subsidies to buy insurance. These are many of the same individuals who may be subject to the whipsaw from the making work pay credit. It’s hard to see how the IRS could take on dozens of new responsibilities under health reform when one tax credit causes so many problems.”
Today’s report is available at http://www.treas.gov/tigta/auditreports/2010reports/201041002fr.pdf
Earlier this month, Grassley sought assurances that the IRS would be prepared for its significant new responsibilities under health care reform. The details of that inquiry follow here.
Related posts:
- Boswell Votes to Extend Unemployment Insurance Benefits, Homebuyers’ Tax Credit, Business Tax Relief
Washington, DC - November 6, 2009 - (RealEstateRama) -- Congressman Leonard Boswell voted to pass the Emergency Unemployment Compensation Extension Act to extend unemployment benefits, the homebuyers’ tax credit, and tax relief for military families and businesses in a vote of 403 to 12....
- Grassley works to help seniors and people with disabilities get care they need at home and seeks tax relief to help individuals manage caregiving costs
WASHINGTON, D.C. - February 16, 2009 - (RealEstateRama) — Federal legislation introduced today by Senator Chuck Grassley would make it easier for states to provide Medicaid home and community-based services to seniors and Americans with disabilities, and empower individuals to manage the financial burdens that come with caregiving needs...
- Grassley works to hold housing department accountable for how stimulus dollars are spent
WASHINGTON, DC - March 16, 2010 - (RealEstateRama) -- Senator Chuck Grassley is asking the Secretary of Housing and Urban Development to account for the way federal tax dollars obligated by the 2009 economic stimulus bill have been spent, including $312 million for public housing in Puerto Rico and program dollars to state housing authorities....
- Grassley Introduces Extension of Housing Tax Relief for Midwestern Disaster Victims
WASHINGTON, DC - November 23, 2009 - (RealEstateRama) -- Sen. Chuck Grassley of Iowa has introduced legislation giving Midwestern disaster victims more time to benefit from tax relief intended to help them repair or replace their devastated homes....
- Loebsack Fights to Fix Unfair Loophole in Homebuyer Tax Credit
Washington, DC - March 10, 2010 - (RealEstateRama) -- Congressman Loebsack sent a letter today to Speaker of the House Nancy Pelosi urging her to bring legislation to the floor that will ensure Iowans are not barred from tax credits due to requirements that penalize married couples. The issue was brought to his attention after a married couple in Iowa...
Comments
No comments yet.
Leave a comment