EITC

Many public assistance benefits are reduced when people go to work. In order to minimize the loss, the government in 1975 instituted the EITC (earned income tax credit). Workers with incomes at certain levels could receive this benefit which this year is up to $7,800 for a working person with three children. When first introduced there was no requirement for social security numbers on dependents but that changed in 1986. That year 7 million children vanished meaning they only existed to collect EITC. Even with this change the IRS estimates that 33% of EITC claims are paid in error. For example, in fiscal year 2023, the IRS estimated that nearly 33% of total EITC payments were improper, totaling $21.9 billion. Using AI may help to reduce these mistakes but congress must follow up on its oversight responsibility. This same case can be made for many programs.