Click here for a copy of the chart Grassley used on the floor of the Senate.
Prepared Remarks of Senator Chuck Grassley of Iowa
Ranking Member, Senate Judiciary Committee
Immigration Reform Debate
“Reality Check”
Tuesday, June 11, 2013
I want to take a few minutes to discuss how the authors have tried to sell the immigration bill, and what I see as false advertising. You see, the American people are being sold a product. They’re being asked to accept a legalization program, and in exchange, they’d be assured that the laws were going to be enforced.
Normally, consumers are able to read the labels of things they’re about to purchase. They’d have to read 1,175 pages to really know what’s truly in this bill, but even a quick read of the bill would leave many shaking their heads in confusion.
You’ve heard the phrase: “Devil’s in the details.” At first, the proposal that the bipartisan group put forward sounded reasonable. But, we need to examine the fine print and take a closer look at what the bill really does.
As I noted yesterday, I thought the framework held hope. But, I realized that the assurances the group of eight made didn’t really translate when the bill language emerged. They professed that the border would be secured and that people would earn their legal status. However, the bill, as drafted, is legalization first, enforcement later, if at all.
So, I’d like to dive into the details and give a little reality check to those who expect this bill to do exactly as the authors promise.
So, what do the proponents of this bill say the legislation will do?
1. They say “People will have to pay a penalty” to obtain legal status.
The Reality:
The bill lays out the application procedures, and on page 972, a penalty is imposed on those who apply for Registered Provisional Immigrant Status. It says that those who apply must pay $1,000 to the Department of Homeland Security. It waives the penalty for anyone under the age of 21. Yet, on the next page, it allows the applicant to pay the penalty in installments. The bill says “The Secretary shall establish a process for collecting payments….that permit the penalty to be paid in periodic installments that shall be completed before the alien may be granted an extension of status.”
In effect, this says that the applicants have 6 years – that’s how long they get RPI status until they have to extend it – to pay the penalty. In addition to the penalty, applicants would pay a processing fee – a level set by the Secretary. The bill says that the Secretary has the discretion to waive the processing fee for any “classes of individuals” she chooses and may limit the maximum fee paid by a family.
The bill doesn’t require everyone to pay a penalty. It doesn’t require anyone to pay it when they apply for legal status. In fact, they may never have to pay a penalty.
2. They say, “People will have to pay back taxes” to receive legal status.
The Reality:
Members of the Group of Eight stated over and over again that their bill would require undocumented individuals to pay “back taxes” prior to being granted legal status. However, the bill before us fails to make good on that promise.
Proponents of the bill point to a provision of the bill that prohibits people from filing for legal status, “unless the applicant has satisfied any applicable federal tax liability.” Sounds good, right? But as always, the devil is in the details. There are two important weaknesses with how the bill defines “applicable federal tax liability.”
First, the bill limits the definition to exclude employment taxes, such as for Social Security and Medicare. Second, the bill does not require the payment of all back taxes legally owed. What it requires is the payment of taxes previously “assessed” by the Internal Revenue Service.
In order to assess a tax, the IRS first must have information on which to base its assessment. Our tax system is largely a voluntary system that relies on individuals to self-report their income on their tax return. But, it also relies on certain third party reporting, such as wage reporting by employers. This is done through the issuance of a Form W-2 to both the employee and the IRS.
If someone has been working unlawfully in the country, and working off the books, it is likely that neither an individual return or a third party return will exist. Thus, no assessment will exist and no taxes will be paid. Similarly, it is very unlikely that any assessment will exist for those who have worked under a false Social Security number and have never filed a tax return.
A legal obligation exists to pay taxes on all income from whatever source derived. Nothing in this bill provides a requirement or a mechanism to accomplish this prior to the granting of legal status.
One of the gang members in January said, “Shouldn’t citizens pay back taxes? We can trace their employment back. It doesn’t take a genius.”
While it may seem common sense, the other side of the aisle is going to argue that establishing a requirement for back taxes owed rather than assessed is unworkable and costly. They will also claim that imposing additional tax barriers on this population could prevent undocumented workers and their families from coming forward.
But, the sales pitch has been clear. To get legal status, one has to pay their back taxes.
Let me provide a reality check. This bill doesn’t make good on the promises made.
3. They say, “People will have to learn English.”
The Reality:
The bill, as drafted, is supposed to ensure that new Americans speak a common language. Learning English is a way we new residents can assimilate. This is an issue that is very important to Americans. Immigrants before us made a concerted effort to learn English. The proponents are claiming their bill fulfills this wish.
However, the bill does not require people here unlawfully to learn English before receiving legal status or even a green card. Under Section 2101, a person with RPI status who applies for a green card only has to pursue a course of study to achieve an understanding of English and knowledge and understanding of civics.
If the people who gain legal status ever apply for citizenship – and some doubt this will happen to a majority of the undocumented population --- they would have to pass an English proficiency exam, as required under current law. So, yes, after 13 years, one would have to pass an exam. But, the bill does very little to ensure that those who come out of the shadows will cherish or use the English language. The reality is that English isn’t as much of a priority for the proponents of this bill as much as they claim it is.
4. They say, “People won’t get public benefits” if they choose to apply for legal status.
The Reality:
Americans are very compassionate and generous. Many people can understand providing some legal status to people here illegally. But, one major sticking point for those who question a legalization program is the fact that lawbreakers could become eligible for public benefits and taxpayer subsidies.
The authors of the bill understood this. In an attempt to show that those who receive RPI status would not receive taxpayer benefits, they included a provision that prohibited the population from receiving certain benefits.
There are two major problems with the bill on this point.
First, those who receive RPI status will be immediately eligible for state and local welfare benefits. For instance, many states offer cash, medical, and food assistance through state-only programs to “lawfully present” individuals.
Second, the bill contains a welfare waiver loophole that could allow those with RPI status to receive federal welfare dollars. The Obama Administration has pushed the envelope by waiving the welfare laws. If this loophole isn’t closed, they could waive existing law and allow funds provided under the welfare block grant, known as the Temporary Assistance for Needy Families, to be provided to noncitizens. Senator Hatch had an amendment during committee mark-up that would prohibit the U.S. Department of Health and Human Services (HHS) from waiving various requirements in the Temporary Assistance of Needy Families program. His amendment would also prohibit any federal agency from waiving restrictions on eligibility of immigrants for public benefits.
But, the reality check for the American people is that there are loopholes and the potential for public benefits to go to those who are legalized under the bill.
Again, the devil is in the details, and I hope this reality check will encourage proponents of the bill to fix these problems before the bill is passed by the Senate. The American people deserve “truth in advertising.”
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