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This isn't about child tax credits. This is about people who are doing something illegal. Yes - the system needs to be simplified and changed to close this and many other illegal and unethical loopholes.
Though I agree that people shouldn't have more kids than they can provide for, I think you are way oversimplifying the issue of "subsidizing the hell out of child rearing". In the interest of full disclosure - I have a gaggle of kids. And if you think the child tax credit means much to me, you're sorely mistaken. The man will squeeze every nickel out of you and I that we let him take.