Emanuel Voices Strong Opposition to Proposed EITC Regs

[1] I am writing to state my strong opposition to the proposed regulation changes for filing for the Earned Income Tax Credit. I object on two grounds: first, that the IRS has developed and proposed these changes without consulting Congress or seeking public comment; and second, that theses changes will deny deserving low-income families the genuine relief they deserve by law.

[2] In the 45,662 pages of the 2001 Internal Revenue Code and its regulations, the Earned Income Tax Credit is the only benefit that makes a meaningful difference in the lives of tax filers with the lowest incomes. With corporations that do business in the United States not only exploiting every gray area but also transgressing the law to their most profitable advantage, it is puzzling that the Internal Revenue Service has focused its enforcement efforts on those who file for the Earned Income Tax Credit. Further, the estimated $100 million cost of implementing these changes could be spent far more effectively if it were directed toward reducing corporate tax abuses.

[3] The EITC injects vigor into local economies as it helps families. In Chicago alone, tax filers received $462.7 million (a 6.7% increase from the previous year) in tax year 2000 through the EITC. Those returned dollars have translated into payments for homes, transportation used for work, and the financing of college educations. These tax filers represent some of the hardest working members of our society, and the Earned Income Tax Credit has given them a well-earned slice of the American pie.

[4] Any EITC overpayments can be rectified in a manner that assists deserving tax filers. One solution is the Simplified Family Tax Credit, which I have proposed and is being discussed among my colleagues. I respectfully request that you halt any further action that would deny the EITC to deserving tax filers, and allow adequate time for public comment and congressional hearings for future regulations changes.