The conservative Republican Study Committee (RSC) on Wednesday laid out its priorities for extending expired tax credits, including limits on ObamaCare and two common low-income tax breaks.
The priority list comes as Democrats and Republicans in Congress and the White House are working on a deal that would make some of the provisions permanent.
{mosads}Permanency for the expanded Earned Income Tax Credit and the additional Child Tax Credit are among the top priorities of congressional Democrats and the White House in any extenders deal. Key provisions of the Earned Income and Child credits, which help low-income working families, are set to expire at the end of 2017.
But the RSC only wants them renewed if there are “significant improvements to the programs’ verification and oversight,” Rep. Bill Flores (R-Texas), the RSC chairman, said in a news release.
“Currently, these benefits can be easily acquired without proper identification or proof of legal status, leading to billions of dollars in waste and abuse each year,” Flores said. “Once tax credit status is obtained, it is nearly impossible to revoke, perpetuating a cycle of tax fraud.”
The RSC also wants to end two energy tax credits — the wind production tax credit and the solar investment tax credit. The wind credit expired at the end of 2014, and renewing it retroactively for 2015 is estimated to cost $6.4 billion. The solar credit is scheduled to expire in 2016, and the RSC wants it to phase out as scheduled.
“We should allow these programs, which amount to the federal government picking winners and losers, to be phased out as scheduled,” Flores said.
Additionally, the RSC wants to maintain current law for the “risk corridor” program in the Affordable Care Act. The spending bill passed at the end of 2014 ensures that the risk corridor program only draws funds from insurances taxes.
Flores called the program, which is designed to help protect insurance companies against unforeseen expenses, “essentially a hidden bailout for insurance companies.”