Illegal refunds, mortgage fraud due to undocumented foreigners and antiquated tax system

Statists like professional celeb whiner Janeane Garofalo scream racism when taxpayers protest the US Customs and Border Protection photo; US is on left and Mexico is on right. [Photo by Gerald L. Nino]amount they pay and dollars wasted. But a new US Treasury Report reveals justification for taxpayer anger and a number of blog articles highlight problems as well. The Judicial Watch blog commented on a report from Treasury about foreigners in the country illegally obtaining tax refunds. JW said, “A lengthy report, made public this week by the Treasury Inspector General for Tax Administration, lays out the gory details of how the tax agency’s negligence rewards law breakers and deprives the nation of crucial funds.“

This may shock even Garofalo, but you don’t have to have a social security number to get a tax credit. The Treasury Dept. report said, “Legislation is needed to clarify whether or not refundable tax credits such as the ACTC may be paid to filers without a valid SSN and, if these credits may not be paid, to provide IRS math error authority to disallow associated claims for the credits. Disallowance of the ACTC to filers without a valid SSN would reduce Federal outlays by $8.9 billion over 5 years.”

Don’t you want to look Speaker of the House Nancy Pelosi in the face and repeat passionately, “Nine BILLION dollars! Nine BILLION dollars”? The current makeup of Congress, dominated by many like Pelosi whose skills are simply outmatched by current technology puts the entire economic system of the country at risk. What many overlook about the “mortgage crisis” is the complete lack of oversight on the parts of both Democratic and Republican congresses.

Speaking of mortgage fraud, Dave Gibson at the Norfolk Crime Examiner interviewed a mortgage auditor. The interview is an eye-popper disclosing how people used stolen social security numbers and how those in the country with no documentation whatsoever obtained mortgages for fraudulent purposes. Of course this is just now being covered by pomp media, but we’ve talked about it since the mortgage scandal broke.

Gibson’s interviewee said, “One borrower stole the SS# of a retiree and took out $3.5 million in loans, turned around and did cash-out refi’s, then fled the country. The retiree was left with ruined credit, $3.5 million in loans and trouble with the IRS. Over 50% of the sub primes were for cash-out refi’s. Regardless of the loan criteria used to pull random samplings for audits, the majority of the last names were Hispanic. The loans I audited were primarily in CA, NV, AZ, FL, CO, compare those to the states with the highest number of foreclosures & illegal aliens.”

The scenario sketched by the Treasury Dept. indicates the complete antiquity of our income tax system. The only way to rectify this is to use the Fair Tax model. The situation described by the banking auditor reflects the federal government’s lack of oversight wherein congressional committees disregarded their responsibilities.

JW said, “In one year alone, the IRS allowed nearly 300,000 U.S. companies to illegally report wages—of employees without valid Social Security numbers—totaling $9.5 billion. This in turn led the government to issue nearly $2 billion in illegal child tax credits to ineligible foreigners, many of them illegal aliens not authorized to earn wages in the U.S.”

Many who attended Tea Party protests were criticized harshly by networks like CNN and by small-minded celebs like Garofalo. Part of the reason for such anger may be the tendency of celebs to look for cheap domestic help, with undocumented foreigners willing to work for less just to have a job.

Another reason for the anger is lack of education—many government reports from social services agencies to the Treasury Dept. to the Justice Dept. document the outrageous cost the current open border policy has created. It is highly unlikely most celebs spend any time reading actual government reports, relying instead on brainwashing via political ideology. It's completely simple-minded to assume that everyone entering the country illegally is a rural migrant worker. Fact is illegal foreigners come from dozens of different countries and we don't know why all of them are here.

Advocacy groups lobby on the basis of politics rather than on the basis of what’s best for this country. Next time a celeb screams ‘racism,’ she’d do well to check her facts first. Illegal refunds and mortgage fraud have cost Americans dearly, and while Congress panders to advocacy groups in exchange for votes, members ignore the oath to uphold the US Constitution.

And finally, I’d suggest Garofalo travel to any foreign country, slip in if she can, and file a tax return or apply for a mortgage without proper docs. We’d love to hear how she fares.

Illegal refunds, mortgage fraud due to undocumented foreigners and antiquated tax system by Kay B. Day