IRS would track all bank transactions over $ 600 under the Biden plan; Revolt of the corporations
A key part of President Joe Biden‘s plan to raise revenue to pay for his trillion-dollar new federal spending is now under attack from trade associations across the country.
The Biden government has made clear its plan to strengthen IRS scrutiny by expanding the agency’s funding and powers. Biden’s latest proposal would require banks to provide bank account information for all accounts greater than $ 600 with the Internal Revenue Service.
In sharp opposition to the proposal, more than 40 trade associations, some of which represent entire industries or sectors of the economy, signed a letter to U.S. House Speaker Nancy Pelosi, D-Calif., And Minority Leader Kevin McCarthy, R-Calif. , Sound the alarm about the plan.
The letter, which includes support from several banking coalitions, calls on Congress to reject this requirement as it would violate customer privacy and create an incredibly expensive and burdensome reporting requirement for banks.
“While the stated aim of this vast collection of data is to expose tax evasion by the rich, this proposal is not remotely aimed at that purpose or population,” the letter said. “In addition to the significant privacy concerns, this would place a tremendous liability on all parties involved as it would require the collection of financial information for almost every American without an adequate explanation of how the IRS is going to store, protect, and use this enormous treasure trove of personal financial information.” . We believe that this program is costly, inefficient and with the potential for unintended and serious negative consequences for all parties. “
The groups argue that it would target “almost any American” and wonder if the IRS could protect this information from hackers and bad actors.
âThe undersigned associations, representing a cross-section of financial and business interests, have issued a letter expressing our staunch opposition to a proposal under the Reconciliation Package that would introduce a comprehensive new tax information reporting system that would directly affect almost all Americans and small businesses “Doing business in an account with a financial institution,” the letter reads. “This proposal would create significant operational and reputational problems for financial institutions, increase tax preparation costs for individuals and small businesses, and raise serious financial privacy concerns. We urge members to resist any effort to push this ill-considered new reporting system. “
Some reports suggest that Democrats are hoping to raise the $ 600 threshold, but that has not happened yet.
Biden suggested giving the IRS an additional $ 80 billion for the audit earlier this year, and said the agency would more than get those funds back. The Democrats in the House of Representatives have so far announced that they will comply with this request.
“There is a 99 percent compliance rate on wages – because wage earners get their earnings reported to the IRS,” reads a leaflet given to lawmakers by the White House for sale under the plan. âBut the super-rich, who get their income from unreported sources, can hide their income and avoid paying the taxes they owe. In fact, each year the top 1 percent chooses not to pay more than $ 160 billion in taxes. “
Republicans on the House Ways and Means Committee held a virtual round table on Wednesday entitled “Guns of the IRS: A Dirty Story and the Need to Protect Taxpayers” to discuss these concerns.
“The meeting will highlight efforts by the Democrats in Congress to nearly double the size of the IRS with a massive increase in funding while doing nothing to combat armamentation by the IRS, including the massive criminal disclosure of taxpayer information to ProPublica this June.” Year. “” Said the office of the Texas Republican Kevin Brady.
This isn’t the only business criticism made of the $ 3.5 trillion bill in the past few days.
The US Chamber of Commerce officially condemned the law this week, calling it an “existential threat” to the economy.
“This law of reconciliation is effectively 100 bills rolled into one, representing every major government idea that never passed Congress,” said Suzanne Clark, President and CEO of the US Chamber of Commerce. âThe law is an existential threat to America’s fragile economic recovery and future prosperity. We will not find permanent or practical solutions in a huge bill that is more than double the common budgets of all 50 states. The success of the bipartisan infrastructure negotiations provides a much better model of how Congress should proceed in dealing with American problems. “
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Keywords: News, State, IRS, Corporate
Original author: Casey Harper, The Center Square
Original location: IRS would track all bank transactions over $ 600 under the Biden plan; Revolt of the corporations