Brady Highlights Budget Savings Package to Decrease National Debt & Fight Fraud

Will Save $98 Billion Over Ten Years
March 10, 2016 — Press Releases   
Health    Social Security    Tax Reform   

WASHINGTON, D.C. – Today, House Ways and Means Committee Chairman Kevin Brady (R-TX) released the following statement regarding the introduction of a package of Ways and Means bills that will decrease the national debt, reduce fraud and cut wasteful Washington spending. All together, these three bills will save a combined $16.5 billion over two years and a total of $98 billion over ten years.

“The American people want Congress to fight fraud and cut wasteful spending – and that’s what these bills do. I look forward to moving these commonsense bills through our Committee and the House in the weeks ahead. The Ways and Means Committee will continue to take action to protect taxpayer dollars and make government programs more accountable.”

The package includes three separate bills that will:

1. Prevent Abuse in the Refundable Child Tax Credit by Requiring a Social Security Number (H.R. 4722 – sponsored by Social Security Subcommittee Chairman Sam Johnson):

Currently, the child tax credit requires only an Individual Taxpayer Identification Number (or ITIN) for taxpayers claiming the credit.  In contrast, taxpayers claiming the earned income tax credit are required to provide a valid Social Security Number.  This proposal would add a Social Security Number requirement with respect to the refundable portion of the child tax credit. This policy saves $4.8 billion over two years.

2. Recover Improper Obamacare Subsidy Overpayments (H.R. 4723 – sponsored by Health Subcommittee Member Lynn Jenkins):

This policy recovers improper Obamacare subsidy overpayments from taxpayers who underreported their incomes to the IRS. Under this proposal, all individuals who receive improper Obamacare exchange subsidies they are not entitled to will be required to repay the full amount of overpayments. This policy saves $8.7 billion over two years.

3. End the Duplicative Social Services Block Grant (SSBG) (H.R. 4724 – sponsored by Chairman Kevin Brady):

SSBG is a $1.7 billion per year no-strings-attached slush fund for states with no accountability. Ending this program saves $3.0 billion over two years and continues efforts to focus limited taxpayers dollars on outcomes, not inputs, of welfare programs to ensure they are effectively helping low-income families.