After Backlash Over $600 IRS Bank Surveillance, Democrats Revise Proposal
Senate Democrats on Tuesday plan to release a reworked version of a Biden administration proposal to surveil US bank accounts – after their original plan to require financial institutions to report transactions on bank accounts with more than $600 in annual deposits and withdrawals was widely panned (i.e. most people).
Now, the rule will apply to anyone with at least $10,000 in annual non-wage deposits or withdrawals, according to the Washington Post, which writes that the toned-down scope ‘intends to insure it applies to only larger account holders.’
We wonder, though, if this includes older Americans deriving at least $10,000 in annual dividends / interest outside of a traditional IRA (which is considered ordinary income when taken)? Or parents sending at least $10,000 per year to college-aged children? Or anyone paying cash for a car, or motorcycle, or literally anything that costs more than $10,000? Or those who have spent at least $10,000 in a year – which brings us back to ‘most people.’
“I don’t know why they thought $600 would be a good number. $10,000 is definitely an improvement,” said former Obama and Trump IRS commissioner, John Koskinen, who thinks the threshold should be closer to $50,000. “The vast majority of people won’t be affected, but it will pick up more than just the idle rich.”
That said, some Democratic aides are skeptical whether even the altered version of the proposal will make it into the final Build Back Better package.
Democrats supportive of the proposal have pointed out that well-funded business lobbyists and Republican lawmakers have mounted an all-out campaign against the measure that has sometimes exaggerated or outright fabricated the extent of the changes. But opposition to the measure is not limited to Wall Street, and has extended to community banks influential with much of the congressional Democratic caucus. -WaPo
Over 20 GOP attorneys general have opposed the original proposal in a Friday letter to President Biden and Treasury Secretary Janet Yellen, saying that it “stands in direct opposition to privacy that Americans are entitled to and deserve.” We can’t imagine they’ll change their stance in light of the changes.
At present, the rule change is nebulous. Perhaps Tuesday’s proposal will shed more light on exactly who Democrats are targeting with financial surveillance.
Mon, 10/18/2021 – 23:20