Fierce battles are shaping up on immigration reform and its tax implications…

Both President Obama and Rep. Paul Ryan (R-Wis.) want to expand a key tax break for the working poor, but any hopes for a bipartisan compromise face a familiar obstacle – immigration reform. In his latest budget, Obama proposed giving adults without children greater access to the Earned Income Tax Credit (EITC), a benefit that in some cases gives working families refunds from the government.

Ryan, the chairman of the House Ways and Means Committee, has sounded open to that idea as well, noting that conservatives and Republicans have long been fans of the EITC and its work requirements.But as a Senate hearing this week showed, the strident debate over Obama’s move late last year to shield millions of illegal immigrants from deportation could undercut any efforts for EITC expansion. Read more…


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