A day after Rep. Martha Roby, R-Montgomery, took to Facebook to address constituents upset over her support of the Ryan-Murray budget deal, she is moving to replace one of the plan’s least popular provisions and ensure that military retirees are not unfairly penalized under the new law.
Roby is partnering with Rep. Mike Fitzpatrick, R-PA, to repeal a provision that reduces working-age military pensions beginning in 2015 and replace it with a measure to prevent illegal aliens from receiving fraudulent cash payments from the government in the form of the Refundable Child Tax Credit.
“There are many good things in the budget agreement passed by Congress: setting a sustainable path of controlled federal spending, preventing some of the harmful sequestration cuts to our military, and returning Congress to regular order to end the days of massive temporary spending bills passed at the last minute,” Roby said in a statement. “However, the final product was not what I would have drafted, and House members were not given the opportunity to improve the bill through amendments on the floor. One provision that is particularly troublesome is the one percent reduction in the cost of living adjustment for working age military retirees beginning in 2015. Just look at the vast federal government that is rife with waste. Are reductions to military benefits really the best place for Congress to make cuts? I don’t think so, and I that’s why I believe that provision should be removed.”
The legislation introduced today in the House – H.R. 3788 – is a compliment to an amendment offered by Sen. Jeff Sessions, R-Mobile, during debate on the budget plan in the Senate. It removes the cost-of-living increase reduction and replaces it with a measure closing a tax loophole that allows ineligible, non-citizens to receive fraudulent cash payments in the form of a Refundable Child Tax Credit.
The Joint Committee on Taxation estimates that closing this loophole by simply requiring the recipients of this taxpayer-funded credit to be eligible citizens would save as much as $7 billion, more than enough to offset the $6 billion gleaned from altering military retiree pensions.
According to a 2011 report form the Treasury Inspector General, “Millions of people are seeking this tax credit who, we believe, are not entitled to it. We have made recommendations to the IRS as to how they could address this, and they have not taken sufficient action in our view to solve the problem.”
The Treasury Inspector General went on to say that “the payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives.”
Roby acknowledged Sen. Sessions’ efforts to amend the Ryan-Murray budget deal before it was passed. Sessions’ amendment was blocked by Democrat leaders in the Senate who would not allow any amendments to the bill to be considered.
“Today I am joining Rep. Mike Fitzpatrick and others in the House to offer a companion bill to Sen. Sessions’ commonsense amendment,” Roby said. “I believe that this is a fix the Republican Conference can rally around. I have personally contacted the House leadership this morning to give voice to the concerns of military retirees in my district who feel singled out by the budget agreement. I am strongly encouraging our leaders to use the Christmas week as an opportunity to build support for this or similar legislation so that we can pass it upon our return in January. In my opinion, it should be the first item on the docket for 2014.”
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