Joe Biden is trying to weaponize the IRS.
Last week, the Biden cabal stepped up pressure to include proposed legislation in the regime’s massive spending bill totaling $3.5 trillion. This proposal would drop the threshold of private and corporate transactions the Internal Revenue Service (IRS) is allowed to examine from its current $10,000 to a mere $600. The puppet masters behind Biden wants to add $76 billion to the IRS budget and hire an additional 87,000 agents to carry out these investigations.
Under Biden’s proposal, all financial institutions in the U.S. ― banks, savings and loans as well as credit unions ―would be required to report an individual’s or family’s transactions over $600 is in cash and report whether the transaction originates in a foreign country or if it represents a transfer from another account also owned by the account holder.
In addition, the Treasury Secretary would also receive broad new powers to make additional regulations that would further infringe on taxpayer rights and expand the IRS’s invasive audit and examination procedures. Biden proposes the sweeping reforms take effect in 2022.
The purpose of the new, much lower ceiling should be obvious, given the massive spending plans the Fascist Democrats have in store. Sen. John Boozeman (R-AR) said Thursday the change is to ensure the massive increase in spending can be paid for by essentially looking in every nook and cranny of the personal finances of every U.S. citizen to make sure the government gets enough money to pay for it all.
“They want this new authority to look at transactions of $600 or more, rather than $10,000 or more, Boozeman told the Epoch Times Thursday, “because they have a $3.5 trillion ― or some would say $5 trillion bill, depending on how you score it ― so they desperately need ‘pay-fors.’ That is how desperate they are.”
Friday Boozeman and Sen. Mike Crapo (R-UT) filed legislation that would block the effort from going into effect, an unusual move given the proposal has not yet been considered in committee as part of the $3.5 trillion spending bill. Rep, Kevin Brady (R-TX) introduced the same legislation in the House Monday.
Citing alleged and dubious claims there are increasing efforts at tax evasion among the rich, the Biden cabal put on the full-court press to include this questionably constitutional measure in the proposed super spending bill and enormous tax increase the House may vote on this week.
It is a continuation of the Fascist Left’s demonization of wealthy Americans, though you can be assured their corporate cronies in Big Tech, social media and regular media will be granted exemptions. it has often been stated that, even taking 100 percent of the wealth of the top one percent, it would be a drop in the bucket compared to the Left’s frightening wish list of absurd programs.
Treasury Secretary Janet Yellen sent a letter to House Ways and Means Committee Chairman Richard Neal (D-MA) last week, asking Democrats to include a “sufficiently comprehensive” reporting provision in the bill “so that tax evaders are not able to structure financial accounts to avoid it.”
With the new reporting rule, “the wealthy can no longer hide what they’re making,” Biden said on September 16 during a speech on the economy. “That isn’t about raising their taxes. It’s about the super-wealthy finally beginning to pay what they owe.”
According to an information paper released by Treasury when the new regulations first became public, the additional reporting would potentially raise another $700 billion over the next decade. That comes nowhere near the amount needed to cover the massive spending package the Fascists want passed, which is also a 10-year proposal.
It is unclear whether some version of the proposal will make it into the final bill, however. The House Ways and Means Committee left out the Biden regime’s proposal in the legislation approved by the committee on Wednesday last week, due primarily to the growing backlash. Neal, however, indicated Monday that the committee is in discussions with the administration on various proposals to increase reporting requirements.
Critics point out that a $600 transaction is hardly the purview of only the wealthy. For many people, it represents the size of their weekly paycheck. Needless to say, bankers and other financial institution executives are not happy about the proposal.
The American Bankers Association (ABA), along with over 40 business and financial groups, sent a letter to House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) the day following Biden’s remarks objecting to the “ill-advised” reporting proposal.
Banks already report a tremendous amount of data to the IRS. According to a U.S. Government Accountability Office report, more than 3.5 billion information returns were received by the IRS for tax year 2018. A large number of these come from banks, the ABA says. These include reporting interest paid on bank accounts, dividend income, brokerage transactions, mortgage interest, and more.
“While the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population,” the letter stated. The letter accused the Biden cabal of attempting to turn the banking industry into the IRS’s police force.
Almost every banking transaction and even transfers between one’s accounts would be aggregated and reported to the IRS, according to Paul Merski, group executive vice president at the Independent Community Bankers of America (ICBA), which represents nearly 5,000 community banks in the United States. ICBA is among the financial groups that strongly oppose Biden’s proposal, calling it an “overreach” by the federal government.
“It’s a dragnet, it’s a collection of data in the scale that we’ve never seen before in the financial sector,” Merski said.
According to an ICBA poll conducted by Morning Consult, 67 percent of voters oppose this proposal. Opposition to this IRS proposal is bipartisan and strenuous, with more than half of voters (53 percent overall) ―both Republican and Democrat ― strongly opposed and only 22 percent supportive.
“We encourage all of our customers to contact their Senators and Representatives to let them know that they don’t want this proposal included in any … legislation,” said Dianna Lee, Marketing & Public Relations Officer for Troy Bank & Trust. “There are already reporting regulations in place, not to mention what an invasion of privacy this is. If this legislation passes, we will be forced to report every transaction coming into an account or going out of an account, personal or commercial, if that account has a balance of $600 or more.”
Given the Internal Revenue Service’s history of politicization, conservatives are correct in expressing concerns about the potential for abuse from the Biden cabal’s proposal.
Add to that the IRS’s track record on data security, including a 2015 hackers’ data breath, tasking the agency to secure additional taxpayer information from nearly every American is a complicated and hazardous gamble, and one the federal government isn’t historically capable of winning.
Community financial institutions exist because of long-standing, trusted relationships with their customers, including many small businesses. This proposal would likely cause local banks to divert resources away from providing needed credit to entrepreneurs and job creators, with the possible result of generational clients becoming discouraged from working with these institutions.
Even though Democrat Fascists have, thus far, declined to throw their weight behind this flawed policy rewrite, the White House remains committed to it. Senate Democrats will have to decide whether they want to join the corrupt, anti-American Biden regime in pursuit of this troubling proposition.
Washington should focus on promoting a pro-growth economic agenda, enabling hardworking taxpayers to keep more of their money in their own pockets, making our small businesses more competitive and reducing regulatory burdens.
Unfortunately, by violating taxpayer privacy, incentivizing customers to flee regulated financial systems, and weakening community financial institutions’ ability to safekeep deposits and provide credit, Biden’s reporting proposal would do just the opposite.
It would be a disaster for consumer trust in their financial institutions and further the cause of Biden’s totalitarian regime in undermining our economic and personal freedoms.
Mike Nichols is a conservative, a patriot, U.S. Army veteran, licensed professional counselor, political enthusiast, sports fan and writer living with his beautiful wife Liz in the Heartland. He has a regular blog at America’s Conservative Voice on Substack and a Facebook presence at Americas Conservative Voice-Facebook.