Biden wants the IRS to keep track of the accounts of all Americans with at least $ 600

The IRS will track all bank transactions over $ 600 under Biden's plan; business is outraged, reports Washington examiner.

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A major component of President Joe Biden's plan to increase revenues to pay for his trillions of new federal spending is currently being criticized by trade associations across the country.

The Biden administration has made it clear that its plan to strengthen audit will be pursued by the IRS by expanding agency funding and authority. Biden's latest proposal required banks to submit information about bank accounts with more than $ 600 to the IRS.

Strongly opposing the proposal, more than 40 trade associations, some of which represent entire industries or sectors of the economy, signed a letter to House Speaker Nancy Pelosi, California, and minority leader Kevin McCarthy, California, USA, raising the alarm about the plan.

The letter, which includes support for multiple banking coalitions, called on Congress to reject the requirement, saying it would violate customer privacy and create incredibly costly and complex reporting requirements for banks.

“Although the stated purpose of this extensive data collection is to identify tax evasion by the wealthy, this proposal does not bring about positive change,” the letter said. “In addition to serious privacy concerns, this would create enormous liability for all affected parties by requiring the collection of financial information for almost every American without adequate explanation of how the IRS would store, protect and use this vast trove of personal financial information.” We believe this program is costly for all parties, not fit for purpose, and has potential unintended and serious negative consequences.”

The groups say the plan will target “almost every American,” and question whether the IRS can protect this information from hackers and intruders.

“The undersigned associations, representing a wide range of financial and business interests, wish to express strong opposition to the pending proposal in the reconciliation package, which seeks to establish a sweeping new tax reporting regime that will directly impact nearly every American and small business,” the letter said. “This proposal would create significant operational and reputational challenges for financial institutions, increase tax preparation costs for individuals and small businesses, and create serious financial privacy concerns.” We urge members to resist any efforts to promote this reckless new reporting regime."

Some reports indicate Democrats are hoping to raise the $ 600 threshold, but that hasn't happened yet.

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Biden offered to allocate an additional $ 80 billion to the IRS earlier this year for audit, saying the agency would more than pay back the funds. House Democrats have so far indicated they plan to comply with the request.

“The wage compliance rate is 99 percent because employees report their income to the IRS,” according to a fact sheet sent by the White House to lawmakers to update them on the new plan. “But super-rich people who receive income from unknown sources can hide their income and avoid paying the taxes they owe. In fact, every year the top 1 percent choose not to pay more than $160 billion in taxes.”

Republicans on the House Methods and Means Committee have scheduled a virtual roundtable on Wednesday, titled "The IRS's Weapons: A Dark History and the Need to Protect Taxpayers," to address these concerns.

“The meeting will highlight Congressional Democrats' efforts to nearly double the size of the IRS with a huge increase in funding while failing to address the massive criminal leak of taxpayer information to ProPublica in June of this year. — said the office of Republican Representative of Texas Kevin Brady.

This is not the only criticism of the $ 3,5 trillion bill in recent days from the business community.

This week the US Chamber of Commerce formally condemned the bill, calling it a "threat to the existence" of the economy.

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“This reconciliation bill is effectively 100 bills in one, representing every major government idea that has never passed Congress,” said U.S. Chamber of Commerce President and CEO Suzanne Clark. “The bill poses an existential threat to America's fragile economic recovery and future prosperity. We will not find lasting or practical solutions in one massive bill that would be equivalent to two combined budgets from all 50 states. The success of bipartisan infrastructure negotiations provides a much better model for how Congress should act on America's problems."

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