In order to pay for just part of President Joe Biden’s massive $3.5 trillion “Build Back Better” domestic spending agenda, congressional Democrats have proposed rooting out tax evasion by requiring all financial institutions to report to the Internal Revenue Service (IRS) the details of all accounts with transactions in excess of $600 annually.
The proposal is wildly unpopular with banks and consumers alike, but House Speaker Nancy Pelosi (D-CA) isn’t budging. Speaking Tuesday, the Democrat leader made crystal clear that the horrifying proposal will remain on the negotiating table as her caucus continues to fight for their pricey spending proposal, Just the News reported.
Pelosi did, however, acknowledge that the dollar amount that would trigger a report to the IRS could be raised to a level higher than a mere $600, which would easily be surpassed by most working Americans with bank accounts.
IRS snooping? Pelosi says yes
During Speaker Pelosi’s weekly presser Tuesday, a reporter raised some of the concerns related to the proposal and asked if Dems were still advocating for it despite pushback.
“Yes,” Pelosi replied, according to a transcript from her office. “Yes. Yes. Yes. Yes,” she said four more times over the top of the reporter who was attempting to ask a follow-up question about her message to Americans.
“Well, I mean, with all due respect, the plural of ‘anecdote’ is not ‘data.’ I’ve said that before here,” Pelosi said dismissively in response to the inquiry.
“Yes, there are concerns that some people have,” she added. “But if people are breaking the law and not paying their taxes, one way to track them is through the banking measure. I think $600 — but that’s a negotiation that will go on as to what the amount is. But, yes.”
Invasion of privacy
Just the News noted that current rules require all banks and credit unions to report to the IRS any individual transaction in excess of $10,000, but the Democratic proposal would substantially reduce that threshold to an annual aggregate of transactions in excess of $600.
Undoubtedly due to the fierce backlash against the proposal, some Democrats have suggested raising the threshold back to $10,000, The Hill reports, though it would still be measured as an annual aggregate instead of linked to individual transactions, which is only a marginal improvement on a still-horrifying idea.
The chief complaints raised by Americans — and expressed by the banks — is that, if implemented, the policy would amount to a massive invasion of privacy.
But those concerns apparently don’t matter to Pelosi or her Democratic comrades, who instead appear fixated on the estimated $460 billion over 10 years that would purportedly be raised by this proposal.
This is a terrible, no good, and absolutely horrendous idea that is blatantly un-American and almost certainly unconstitutional. One can only hope Republicans in Congress are willing to put up a fight.