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.”
Oh, they’ll do it. On the sly.
Yellen did not back down. Biden string pullers only jumped back to regroup.
More to come
If Fed.gov wants your information, there is 100 ways for them to get it anyway.
Remember FISA Section 702, All of the Democrat’s “private contractors” and Admiral Mike Rogers?
Unreasonable search … where are the Constitutional “penumbrae” of privacy as in Roe v Wade??
Maybe it will slide in with the $10,000 limit noted. But as time goes on , they will make the limit lower and lower.
Or, in the worst case of severe inflation, $10,000 in a few years could have the buying power of $600 today. Give us a decade of double digit inflation, and it could happen.
Its bad enough that they’d even suggest such a heavy handed move.
These people know NO limits in attacking everyday Americans.
Yep.
Scum gotta scum.
For a huge part of the public, the only thing hitting the bank account is the slim pickings of a paycheck AFTER TAXES have been already paid.
I want to know how these creeps can spy on law abiding citizens without a probable cause warrant.
Blatantly unconstitutional.
This is why these (extra)unconstitutional agencies of the federal government need to dissolved. IRS, EPA, OSHA, BATF, Education...and so on.
This does NOT change any concerns whatsoever. This is not a proposal to report a $10,000 transaction, which is already federal law.
This is to propose to allow the IRS to snoop on any account with $10,000 of activity per year.
Do you have your paycheck direct deposited into your checking account? Bingo, your account is now eligible for full disclosure to the IRS.
The $600 amount equals the 1099/W9 reporting requirement for sub contract/contract work. I doubt it's $7 trillion worth that the IRS isn't getting from people not reporting. That would be over $20 trillion of payments taxed at 25-30% not being reported.
The fact that she was for it before she was against it
Tells us all we need to know about this bitch
“Now, Yellen has somewhat changed course, supporting a raise in the reporting threshold from $600 to $10,000.”
~~~
I heard many many years ago that transactions over 10k were by law required by the bank to be reported. Is this not already a thing?
Oh, horse doodoo Janet. You were after the low income underground economy and you know it. The public is by and large stupid but not that stupid.
They just want access to all bank accounts so they can drain them when the owners do not obey the feral government.
If the other guy has more money than I do, I say "good for him!". Taking his money doesn't make me any happier.
$600 in activity per year??????that is less than $1.65 per day….are these people completely insane????how many times per week do I ask this????
This is not a proposal to report a $10,000 transaction, which is already federal law.
I believe that is a cash transaction, not all of them currently. In fact it extends to any unusual cash transaction.
The per year thing in this proposed law is BS IMO. The government here feels it is just lending you their money.
As far as I am concerned, the government can go FO.
10k is still non of her business. Until there’s a crime, she should need a valid warrant....Then, look. But, these are our accounts a as did weather we move 10k or 100k, it is not open for her.
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