This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: ‘Surveillance state’: GOP sees government overreach in Biden IRS $600 disclosure plan
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Trending > ‘Surveillance state’: GOP sees government overreach in Biden IRS $600 disclosure plan
Trending

‘Surveillance state’: GOP sees government overreach in Biden IRS $600 disclosure plan

Editorial Board Published October 8, 2021
Share
‘Surveillance state’: GOP sees government overreach in Biden IRS 0 disclosure plan
SHARE

A proposal to give the IRS access to all financial transactions above $600 is raising concerns among congressional Republicans about government overreach.

Democrats are pushing for regulations within President Biden’s $3.5 trillion, 10-year social welfare bill that would require banks to report annually on the “inflows and outflows” of personal and business accounts. The reporting requirement would cover any transaction above $600 or bank accounts with deposits totaling that sum. Some Democrats are also pushing for rules to cover mobile money transfer systems such as PayPal and Venmo.

Critics say the low reporting threshold would essentially give the IRS unfettered access to how ordinary Americans spend their money. Some Republican lawmakers say the expansion of federal powers would amount to a “surveillance state.”

“It feels a lot like communist China surveillance, doesn’t it?” said Sen. Bill Hagerty, Tennessee Republican and a former ambassador to Japan. “They’re going to insert themselves in every aspect of American lives. People don’t want this.”

Biden administration officials say the provision would help crack down on wealthy tax scofflaws and businesses that don’t report taxable income. They point to the “tax gap,” the difference between the amount owed to the federal government and the amount paid, as proof of the need for more financial reporting.

“There’s an enormous tax gap in the U.S., estimated at $7 trillion over the next 10 years,” Treasury Secretary Janet Yellen said last week. “And that’s not coming from people failing to report wage income or dividend income where there’s good information. It comes from places where the information on income is opaque and can be hidden.”

Democrats want to use Mr. Biden’s social spending bill to beef up IRS tax enforcement as one way to pay for other items on their wish list. Lawmakers are proposing an additional $79 billion overall for the agency to pursue tax cheats.

Republican lawmakers say the expanded enforcement and the $600 bank reporting requirement are likely to fall hardest on average Americans who cannot afford to wage legal fights with the IRS.

“Democrats want to spend [nearly] $80 billion so that federal tax authorities can expand their reach into the financial habits of average Americans snooping on transactions as small as $600,” said Senate Minority Leader Mitch McConnell, Kentucky Republican. “They want to finance their [$3.5 trillion] spending spree by effectively treating every ordinary American as if they were under an IRS audit.”

Democrats say such fears are overblown and average citizens will have nothing to fear from the $600 reporting requirement and a beefed-up IRS.

“It’s just a few pieces of information about individual bank accounts, nothing at the transaction level that would violate privacy,” Ms. Yellen said.

Private-sector banking interests disagree with that assessment.

“This new proposal would result in banks and credit unions turning over to the IRS sensitive account details that in and of themselves do not constitute taxable events,” the Credit Union National Association wrote in a letter to lawmakers last week. “This would leave the IRS with a massive trove of personal financial data that would be used in a manner that is not detailed in the proposal. This is risky and unnecessary.”

The American Bankers Association and other financial industry groups have logistical questions about how the reporting requirements would work.

“Despite assertions by some that a new reporting regime would be simple to execute and represent a low or even no-cost mechanism to help narrow the tax gap, designing system capabilities to capture account inflows and outflows and other information is complex, expensive, and will take years,” said ABA President Rob Nichols. “Having the raw data somewhere in a bank system does not mean it is easily compiled or produced to government specifications.”

Democrats pushing for the requirements are struggling to find ways to pay for their social spending bill. A battle between the party’s moderates and liberals is whittling down the 10-year price from the bill’s original $3.5 trillion.

Dubbed “human infrastructure,” the $3.5 trillion package is pitched as the federal government’s most “consequential” expansion since the New Deal. Democratic leaders say the legislation complements the companion bipartisan infrastructure bill, which focuses on roads, bridges, railways and airports.

The larger bill amounts to a comprehensive wish list of liberal priorities such as proposals for climate change, tuition-free community college and expanded health care programs.

Sign up for Daily Newsletters

TAGGED:TrendingWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Treasury Yields Rise After Jobs Report Treasury Yields Rise After Jobs Report
Next Article Stocks Cling to Weekly Gains Despite Weak Jobs Report Stocks Cling to Weekly Gains Despite Weak Jobs Report

Editor's Pick

Pleasure parade cancelled after being halted by pro-Palestinian protesters

Pleasure parade cancelled after being halted by pro-Palestinian protesters

Ottawa’s annual Pleasure parade was cancelled on Sunday after it was halted by a native pro-Palestinian advocacy group that blocked the…

By Editorial Board 5 Min Read
If You Like Encompass Sound, the Sonos Period 300 Is 20 P.c Off Proper Now
If You Like Encompass Sound, the Sonos Period 300 Is 20 P.c Off Proper Now

Trying to improve your Sonos setup? The Sonos Period 300 (9/10, WIRED…

3 Min Read
I Turned My Yard Right into a Nature Documentary With a Flock of Sensible Hen Feeders
I Turned My Yard Right into a Nature Documentary With a Flock of Sensible Hen Feeders

It additionally comes with further plastic flowers and just a little brush…

33 Min Read

Oponion

Collin Gosselin Prolonged Olive Department to Estranged Siblings

Collin Gosselin Prolonged Olive Department to Estranged Siblings

Now that Collin Gosselin has prolonged an olive department to…

October 19, 2024

10 Greatest Sneakers to Put on With A Go well with – Males’s Information For 2024 | Fashion

Fits are a wonderful piece in…

September 24, 2024

San Mateo police arrest Kentucky man who, upset by excessive beams, allegedly rammed different automobile

SAN MATEO — A Kentucky man…

January 13, 2025

Woman shot on film set remembered as gifted cinematographer

NEW YORK (AP) - Halyna Hutchins,…

October 22, 2021

Heathrow closure: Sir Keir Starmer receiving ‘common updates’ | Politics Information

Sir Keir Starmer stated he's receiving…

March 21, 2025

You Might Also Like

Gregory Hatanaka Teases His Biggest Films Yet with No Regrets and The Shout
EntertainmentTrending

Gregory Hatanaka Teases His Biggest Films Yet with No Regrets and The Shout

If you know indie cinema, you know Gregory Hatanaka. The veteran director, producer, and distributor has spent decades zigzagging through…

6 Min Read
Okay So I Clicked on “Castle” at 2AM and Things Got Weird
Trending

Okay So I Clicked on “Castle” at 2AM and Things Got Weird

Princess. Dragon. Kingdom. Knight. Wait what? So I'm on this website called Embeddings.fyi at like 2 in the morning because…

6 Min Read
Best YTT Yoga School a Journey from Student to Teacher: Transformative Yoga Retreats in Asia
LifestyleTrending

Best YTT Yoga School a Journey from Student to Teacher: Transformative Yoga Retreats in Asia

In recent years, Bali has become a global epicenter for yoga education, attracting aspiring teachers and seekers from every corner…

7 Min Read
Inside the Blueprint: How a Ground-Breaking CCUS Review Is Shaping the Race to Net Zero
Trending

Inside the Blueprint: How a Ground-Breaking CCUS Review Is Shaping the Race to Net Zero

Author, Jean Chantel The 2024 review article “Carbon Capture, Utilization and Storage (CCUS) Technologies: Evaluating the Effectiveness of Advanced CCUS…

6 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?