I was listening a discussion on poverty on CSPAN radio this morning and Robert E. Rector from The Heritage Foundation claimed that 25% of the Earned Income tax credit is fraudulent.
Specifically, the claim was that 25% of the money goes to people who misreport their income or people who don't have the "relevant child in their home" (I'm guessing divorced parents claiming dependents on their taxes that live with the other parent).
Is there any evidence that 25% of the EITC is payed improperly?
Edit: Link to the program, the claim is made around 21:30