Source: United States Senator for South Carolina Tim Scott
WASHINGTON – U.S. Senator Tim Scott (R-S.C.), Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Committee on Finance, and other Senate Republican colleagues introduced the Prohibiting IRS Financial Surveillance Act, which would prevent the Internal Revenue Service (IRS) from implementing Democrats’ plan to give the agency access to transaction information of virtually every American.
“Low- and middle-income families are the ones who stand to lose the most in Biden’s America,” said Senator Scott. “There’s no way around it. This administration is desperate to fund trillions of dollars in new spending and is forcing hard-working Americans to pay for it by supercharging the IRS with vast new powers to spy on our bank accounts.”
“Advocates claim they do not intend for the IRS to increase audits on working families, but estimates show the IRA’s tax revenue goals for this funding cannot be met without also increasing enforcement on those making less than $400,000 per year,” said Senator Crapo. “Instead of unenforceable edicts, this legislation would prevent the IRS from using its new, massive supplemental funding to increase audits on small businesses and working families.”
This bill is endorsed by Consumer Banking Association, CUNA, American Bankers Association, U.S. Chamber of Commerce, NAFCU, ATR, and NTU.
Background:
President Biden, Treasury Secretary Yellen, and the IRS have long sought to access to every working American’s financial information by requiring financial institutions to report to the IRS each and every withdrawal and deposit that total at least $10,000.
- The “Prohibiting IRS Financial Surveillance Act” would prohibit the Biden administration’s proposed violation of privacy and federal government overreach.
- Under the Biden reporting regime a family whose monthly expenses total just $833 would still be required to be reported to the IRS.
- Nearly every American, even those below the poverty line, would be subject to this proposed reporting regime.
- The Joint Committee on Taxation has analyzed the proposal and found that it is likely to impact taxpayers in every income bracket, including those making less than $50,000.
- Steven Rosenthal at the left-leaning Tax Policy Center concluded the bank reporting requirement proposal would, “in fact, bury the agency in a sea of unproductive information.”
Click here to read the bill.
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