Earlier today, Treasury Secretary Janet Yellin defended the Biden administration’s proposal to require banks to report inflow and outflow information on all accounts with more than $600 or more than $600 in transactions–in other words, virtually all bank accounts: …
“Right now, on every bank account that earns more than $10 a year in interest, the banks report the interest earned to the IRS. That’s part of the information base that includes W2’s and reports on dividends in other income that taxpayers earned. So collection of information is routine.”
That is rather disingenuous. Interest paid by banks is income. Employers and many others report income that they pay out to the IRS. This proposal is different: the idea is that the IRS can compare the amounts of money going into and out of bank accounts with the income reported by a given taxpayer. …
The administration claims this measure would yield something like $46 billion a year in revenue by catching tax cheats. As an honest taxpayer, I am sympathetic to the argument that it is in my interest for cheaters to be caught. The problem is that I don’t trust the Biden administration, and I don’t trust the IRS.
The Democrats have politicized one federal agency after another, and they have weaponized the IRS, in particular, to weaken their political opponents. I have zero confidence that the IRS wouldn’t selectively use this new data source to target Republicans in general, and vocal opponents of the Biden administration in particular.
On the contrary, experience suggests that this is exactly what they would do. That being the case, and given the broader concerns about privacy that most Americans share, the last thing I want to do is give the Biden administration private information about essentially every bank account in the U.S.
Too much government is never enough, comrade.
Anyway, it’s not your money — we made it, they’ll say.
They spend trillions on bills they haven’t read but want details on how you spent $600.