The Biden administration is trying to get access to your bank account.
The Wall Street Journal reports that a new proposal from the Biden administration would give the Internal Revenue Service (IRS) the ability to keep tabs on the bank accounts of the overwhelming majority of Americans.
The plan was recently put forth by Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig. It would require banks to provide the IRS with transaction data on all accounts that either have at least $600 in them or have made at least $600 worth of transactions over the course of a year.
The simple answer is that the Biden administration needs more money for all of the spending that it wants to do.
Accordingly, President Joe Biden has called upon the IRS to tighten up the enforcement of tax laws, so as to make sure that everybody is paying their fair share. Yellen and Rettig’s plan is a means to this end.
The two recently wrote letters to Congress urging legislators to include the plan in legislation.
Wage and salary income is reported to the IRS on W-2 reports, and tax obligations are automatically withheld, so compliance rates stand at 99 percent. It is clear that when taxpayers know that this information exchange exists, their voluntary compliance rises.
Yellen says that the federal government would take in an additional $460 billion over the next decade if such a plan as this were implemented.
Will it happen?
At the moment, it appears that the plan will not be implemented. The Wall Street Journal reports that the plan was not included in a list of tax proposals recently compiled by Democrats in the House of Representatives.
The Journal says that this suggests that the idea was not popular among the Democrats, who probably recognized that the idea would not exactly be welcomed by their base.
But, the Journal also notes other issues with the idea, such as the cost to enforce it as well as the difficultly the IRS would have in sifting through all of the data.
Just because the idea appears to be off the table now, though, doesn’t mean that the Democrats won’t try again at some point in the future.