Biden administration pushes for new law requiring banks report $600+ transactions to IRS

It seems as if Democrats are venturing far into the realm of desperation in their attempt to find a way to pay for their $3.5 trillion spending bill, and Rep. Bob Good (R-VA) believes that the Biden administration has found one way to make it happen.

According to Rep. Good’s recent Breitbart exclusive, President Joe Biden and his administration are pushing for new rules that would require your local bank or credit union to report all transactions in the amount of $600 or more to the Internal Revenue Service (IRS), which is a drastic change from the existing rules of reporting requirements for transactions of $10,000 or more. 

Rep. Good believes the efforts to implement such an insane rule fall into the category of gross government overreach, to say the least.

“Textbook overreach”

The Virginia Republican held nothing back in his assessment of what he thinks the Biden administration is cooking up.

“This action is a huge leap from the current requirement to report transactions of $10,000 or more and is textbook government overreach.  One purpose of the initiative is to capture more money from Americans to pay for the record $3.5 trillion Democrat socialist spending spree,” Good wrote.

The Republican added: “Under the guise of holding the wealthy accountable for their fair share of taxes, the Biden IRS will actually be targeting middle America. The proposed regulation would apply to all business and personal accounts, affecting the lives of all American workers and small employers across the country.”

Of course, Good is referring to a recent letter sent to congressional Democrats by Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig, in which they urged Congress to include language in an upcoming bill that would force banks to report transactions in the $600 or more range.

According to the Biden administration, it predicts such a rule would result in an extra $460 billion collected over the next decade — not quite enough to pay for the $3.5 trillion spending bill, but it’s something.

The backlash

Aside from many Republicans who believe enacting such requirements is farfetched, at best, banks are also unhappy with the proposal, as it would create mountains of additional reporting work that would undoubtedly require banks and credit unions to hire more staff and be subjected to higher overhead to comply with such reporting.

“Compliance, legal, and programming expenses will significantly increase operating costs for these unnecessary and unproductive activities.  As these expenses are passed on to consumers, it will cost you more to do business with your financial institution, while also increasing the risk of data security and privacy breaches,” Good wrote.

Other experts believe that the unfathomable amount of data the requirement would create is not even reasonably able to be deciphered by the IRS.

Only time will tell if the Biden administration is able to pressure Congress into passing the proposal into law, but with the amount of criticism and backlash already happening, it doesn’t seem likely at this point.

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