The Earned Income Tax Credit "Pre-Certification" Plan Opposed by Senate Democrats

by Guest Blogger, 7/25/2003

Efforts to stop the proposed "pre-certification" of Earned Income Tax Credit (EITC) recipients have growing support in the Senate.

Sen. Max Baucus (D-MT) and forty-four other Senators sent a letter to President Bush on July 18, 2003, asking that the proposed pre-certification of EITC recipients be halted. The letter says that the proposed program "unfairly discriminates against low-income taxpayers and imposes significant burdens on their families by requiring them to supply information to the IRS in a way not asked of any other U.S. taxpayer," and seeks alternative bipartisan approaches to improve EITC noncompliance. On July 22, Democrats and Independents on the Senate Finance Committee (of which Sen. Baucus is the Ranking Member) sent a letter to Finance Committee Chairman Charles Grassley (R-IA) asking for hearings on the proposed program.

For more information about the IRS plans see OMB Watch's comments.