The Biden administration wants to spy on Americans’ bank accounts.
Breitbart reports that the Biden administration has been putting pressure on legislators in Congress to enact a plan that the outlet said would require banks “to turn over to the Internal Revenue Service detailed information about inflows and outflows of almost all American bank accounts.”
All the details
The plan was reportedly spearheaded by Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig. The pair pushed the proposal in a letter to lawmakers.
The goal, Breitbart said, is to help the IRS crack down “on unreported income and to create more leads for audits.” After all, the president’s latest federal spending plans have massive price tags — and someone’s got to pay for it all.
Under the proposal, banks would be forced to send to the IRS information on all accounts that have at least $600 dollars in them, as well as accounts that make at least $600 worth of transactions over the course of a year. Given the low thresholds, millions of Americans would be affected.
And as Breitbart notes, while White House officials have conceded there may be logistical problems with the plan, they’ve suggested threat of IRS review might be enough to discourage Americans from leaving income unreported.
“Wage and salary income is reported to the IRS on W-2 reports, and tax obligations are automatically withheld, so compliance rates stand at 99 percent,” Yellen wrote in the letter to lawmakers. “It is clear that when taxpayers know that this information exchange exists, their voluntary compliance rises.”
It is believed that the IRS would collect an additional $460 billion over the course of a decade if this plan were to be implemented, Breitbart said.
A look ahead
The good news: It appears that at this point, the plan is not being pursued by Congress. The Wall Street Journal reports that the plan was not included in the list of tax change proposals recently put together by House Democrats.
Clearly, as the Journal suggests, Democrats didn’t think such a proposal would sit too well with their base.
But there are also some practical problems with the plan. For smaller banks, it would be costly and difficult to implement. It would also be difficult for the IRS to manage, considering it would have to somehow sift through all of this data.
We should be thankful that this one isn’t going forward. But it just goes to show that there’s no idea too radical for the Biden White House to consider.