Government spies take on a whole new meaning in President Biden’s $ 5.5 trillion spending bill. Washington Democrats.
This monitoring system creates serious privacy concerns for anyone with a job. It also imposes tax preparation fees on individuals and small businesses, in addition to operational and regulatory barriers for community banks and credit unions. Democrats try to pretend in theory that it is the wealthy billionaires and the companies that they are looking for, but that logic does not stand up to scrutiny. After all, wealthy individuals and businesses can afford legal assistance to overcome these proposed hurdles and tedious declarations, assistance that small businesses certainly cannot afford on their own.
After rightly receiving a big backlash, Democrats have attempted to soften the contours of this proposal so that the IRS only monitors most bank accounts rather than nearly all bank accounts. The revised proposal exempts certain payment processors, provides support to financial institutions to facilitate processing, and excludes certain outputs such as mortgage payments.
Attempts to cover up this gross invasion of privacy are meaningless. Regardless of the reporting threshold, millions of consumers and small businesses would be affected. Even with exclusions, the Democrats’ most recent proposal could still capture the bank account of a minimum wage worker. Plus, hard-working Americans like hairdressers, plumbers, contractors, gig workers, or anyone who isn’t paid on a W2, would have their bank accounts monitored by the IRS.
Another problematic aspect of the surveillance system is the risk of IRS hacking. Democrats are completely turning a blind eye to this risk, to which the IRS is no stranger. The IRS has suffered huge data breaches in the past which have led to the theft of taxpayer personal information. While the Treasury Department says it plans to use the data only to augment audits of certain high-income earners, data collected from taxpayers earning less than that is still aggregated in a central location vulnerable to cyber-attack. attack.
The IRS surveillance plan also threatens access to financial services in rural areas. Requiring community banks and credit unions to report account inflows and outflows to the IRS adds to the significant regulatory burden that community banks and credit unions already face. Requiring these financial institutions to follow certain exemptions, determine if the accounts have the same owner or if the funds entering and leaving are in cash may be feasible by a large bank, but the smaller community banks and credit unions in our area will find the requirement to be difficult and costly to meet.
intend to pay for their giant spending plan by allowing the IRS to deploy a monitoring program on US bank accounts under the pretext of closing the âtax gapâ. The proposal would require banks and credit unions to report most inflows and outflows to IRS agents.
It’s bad enough that the $ 5.5 trillion spending program will lead to more inflation, explode our national debt, and cut jobs in the energy sector to create a Green Climate Corp.
It’s even worse that Democrats hope to pay for it by monitoring the bank accounts of working families and small businesses, while leaving your personal information vulnerable to cyberattacks. Don’t be fooled by Democrat rhetoric that the rich pay their fair share; this big government’s socialist spending plan will hurt small businesses and make life harder and more expensive for the middle class.