IRS overpays EITC 132 billion in 10 years

EITC, The Earned Income Tax Credit,  was primarily a Republican idea, and was signed into law in 1975 with bi-partisan support. The "refund" doesn't affect any other benefits received like welfare (TANF), food stamps, Medicaid, housing, etc. In fact, for some families it would be a loss if they got a raise at work and weren't eligible for EITC--which is how we hurt the poor with government transfers.

132 billion in EITC was overpaid by IRS to people who paid no income tax. From the IRS website:  "The EITC is a refundable tax credit. This means taxpayers may get money back, even if they have no tax withheld [from earned income]. Nationwide last year [2011], over 27 million eligible individuals and families received nearly $62 billion in EITC." This overpayment is an IRS problem, not an Obama problem. It has been going on for as long as the law has existed. There was recently a law passed to get the figure lowered which has been ignored. This is the agency that will be enforcing ACA, the Obama insurance law declared a tax by SCOTUS. http://www.thefiscaltimes.com/Articles/2013/04/24/IRS-Overpaid-Low-Income-Tax-Credit-by-132-Billion