H.R.778 - Safeguarding American Workers’ Benefits Act (119th Congress)
Summary
H.R.778, the Safeguarding American Workers’ Benefits Act, proposes amendments to the Internal Revenue Code of 1986, modifying the Social Security number (SSN) requirements for claiming the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). The bill aims to ensure that only individuals with SSNs issued to U.S. citizens or those lawfully admitted are eligible for these tax credits. The changes would apply to taxable years beginning after December 31, 2025.
Expected Effects
The bill's passage would tighten eligibility requirements for the CTC and EITC. This could reduce improper payments and ensure benefits are directed towards eligible recipients. It may also create additional administrative burdens for taxpayers and the IRS to verify SSN eligibility.
Potential Benefits
- Reduced improper payments of the Child Tax Credit and Earned Income Tax Credit.
- Increased integrity of the tax system by ensuring only eligible individuals receive benefits.
- Potential savings for taxpayers due to reduced fraud and errors.
- Alignment of tax benefits with citizenship or legal residency requirements.
- Simplification of tax code enforcement related to SSN verification.
Most Benefited Areas:
Potential Disadvantages
- Potential for eligible low-income families to be denied benefits due to documentation issues.
- Increased administrative burden for taxpayers to prove SSN eligibility.
- Disproportionate impact on immigrant families who may face challenges in obtaining qualifying SSNs.
- Possible delays in processing tax returns due to stricter verification processes.
- Risk of errors in SSN verification leading to wrongful denial of benefits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is complex. Congress has the power to lay and collect taxes under Article I, Section 8, Clause 1, and to make laws necessary and proper for carrying out these powers. The bill's restrictions on tax credits based on SSN requirements could be seen as a reasonable means to prevent fraud and ensure proper allocation of resources. However, the equal protection principles under the Fifth and Fourteenth Amendments could be invoked if the law disproportionately impacts specific groups without a compelling government interest. Further legal analysis would be needed to determine its ultimate constitutionality.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).