Posted on 10/19/2021 1:04:06 PM PDT by Red Badger
Secretary of the Treasury Janet Yellen has relented in response to backlash over a controversial proposal by Democrats that would have allowed the IRS to gain information from any American bank account with more than $600 of activity in a year.
The measure initially came to light as a part of Democrats’ $3.5 trillion reconciliation bill. Trying to head off concerns from moderates, Democratic leaders and rank-and-file lawmakers have desperately marketed the bill as being completely paid for with no substantial effect on the deficit or national debt.
One proposal to achieve that end was the IRS measure. Despite immediate backlash, Speaker of the House Nancy Pelosi (D-Calif.) and Yellen adamantly defended the planned IRS overhaul.
Yellen, the former Chairwoman of the Federal Reserve who took control of the Treasury in January, said the measure is designed to target wealthy Americans who hide income from the IRS. Because of the measure, Yellen said the IRS will be able to collect more taxes from the wealthy and close the “tax gap.”
“We have a tax gap that over the next decade is estimated at $7 trillion, namely a shortfall in the amount that IRS is collecting due to a failure of individuals to report the income that they have earned,” Yellen said.
Now, Yellen has somewhat changed course, supporting a raise in the reporting threshold from $600 to $10,000.
While still supporting the broad goal of closing the so-called “tax gap,” she relented on key aspects of the program.
“Under the current system, American workers pay virtually all their tax bills while many top earners avoid paying billions in the taxes they owe by exploiting the system,” she said. “At the core of the problem is a discrepancy in the ways types of income are reported to the IRS: opaque income sources frequently avoid scrutiny while wages and federal benefits are typically subject to nearly full compliance.”
“This two-tiered tax system is unfair and deprives the country of resources to fund core priorities.”
However, responding to concerns that the program would target middle class and low-income Americans, Yellen announced several changes to the original measure.
Foremost, the reporting threshold will be raised to $10,000, addressing a key concern from critics who considered $600 to be too low to merit IRS snooping.
Yellen also announced an “exemption” from the measure “for wage earners like teachers and firefighters.” It is not yet clear whether this exemption will extend to other middle class wage earners in the private sector.
Yellen applauded these new proposals for “protecting American workers.”
“Today’s new proposal reflects the Administration’s strong belief that we should zero in on those at the top of the income scale who don’t pay the taxes they owe,” Yellen said.
She concluded, “We will e to work with leaders in Congress to enact this important measure to level the playing field for workers and small businesses, and raise revenue to build our economy back better.”
Republicans have criticized the proposal since it became public.
House Minority Leader Kevin McCarthy (R-Calif.) said, “This surveillance program crosses a line,” calling the program “un-American.”
Senate Minority Leader Mitch McConnell (R-Ky.) said that Democrats “want to finance their spending spree by effectively treating every ordinary American as if they were under IRS audit.”
“I must have forgotten when the president campaigned on giving everybody their own audit,” McConnell quipped.
Sen. Tommy Tuberville (R-Ala.) decried the plan in a statement as “[violating] the liberty of every freedom-loving American who values their financial privacy.”
Stealing an election is unconstitutional, obama was unconstitutional, most lf the post 9/11 nazi crap they put in place is unconstitutional.
Point is they will keep going until they get violent pushback.
Which is no longer in our favor.
Of Course they exempted Congress and maybe the the IRS itself.
It just doesn’t get much worse than chopping your own cock and balls off and thinking you’re a woman.
Any time the feds want to look at my bank account should require a warrant from a court based on cause.
We have a tax gap because of the overspending in dc.
What would a minimum wage person bring in a year, 12k?
So if this sly bitch agrees to 10k, it pretty much covers everybody that have pay checks clear through their bank.
These pos bureaucrats think we are stupid. Slight of hand in a smoke and mirror filled room
Yellen did NOT back down.
The Troll merely raised the threshold amount.
STAY OUT OF MY PRIVATE BUSINESS, MUNCHKIN.
say goodbye to banks...which IS the real objective here
They probably are doing it right now. But they still have to come around the other way and find enough evidence to have probable cause for a search warrant. Yellen wanted to save on paperwork, and this is how you treat him!/s
That mean witch needs to retire and stop destroying the country.
They can tax you again, and again and again, as many times as they want. Remember the CLINTON ADMINISTRATION tax on the DEAD? They RAISED TAXES ON INCOME THAT HAD ALREADY BEEN TAXED AND PAID EVEN IF THE TAXPAYER HAD DIED SINCE THEN! AND THE DAMNED SUPREME COURT LET IT STAND!....................................
Spread it around to different banks and credit unions. Buy Certificates of Deposits, Put some in Trusts, etc, etc.......................
Isn't that special. Translation - Exemptions for people likely to vote for democrats.
Then it is legal. What is your problem with that, Janet? The 'system' YOU HELPED CREATE, YOU NOW DISPARAGE? They somply play by the rules. They are doing things by the book... ...................
A pyrrhic victory at best.
Typical liberal tactic.
Go for the gold, settle for silver or bronze.
They still win something.
Rinse, lather, repeat................
Like they do now.......................
$10k or $10T makes no difference. It’s still UNCONSTITUTIONAL.....................
They play semantics very well...............
‘They’ technically already have complete access to all banking records, if they want them, through the audit process...........................
The idea.......................
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