President Joe Biden’s proposed plan to increase revenue by auditing more Americans and having banks report their accounts to the IRS has been among his most controversial plans. Now, one of the most prestigious business publications in the world, the WSJ editorial board, says Biden’s plan will force more Americans to use cash.
The details are murky, but most Americans could still get ensnared in this dragnet unless they pay bills and buy goods in cash. Democrats say banks will only have to report total annual inflows and outflows, not discrete transactions. But nearly all Americans spend more than $10,000 a year.
Democrats have been backpedaling on the plan since a wave of pushback after it was announced. Under the proposal, banks would be required to hand over data to the IRS for accounts that featured more than $10,000 in transactions, which would hit millions of Americans.
“Today marks another attempt by the administration and congressional leaders to explain to the American people why the government needs more information on them,” said Rob Nichols, president and CEO of the American Bankers Association. “Even with the modifications announced today, this proposal still goes too far by forcing financial institutions to share with the IRS private financial data from millions of customers not suspected of cheating on their taxes. The exclusion of payroll and federal program beneficiaries does not address millions of other taxpayers who would be impacted by the proposal. Not every non-wage worker is a millionaire. How about self-employed hair stylists, convenience store owners and farmers just to name a few?”
Meanwhile, Republicans, banks, businesses and nonprofits are raising the alarm about the current proposal.
“President Biden and the Left have proposed legislation that lets the IRS spy on your bank account if you spend or receive more than $10,000 – combined – over the course of a year,” the American Center for Law and Justice said. “We’re ready to go to court to stop this new bill, but we need you.”