October 19, 2021
Commentary | Center for American Prosperity
Invasive IRS Provision in the Big Government Socialism Bill: Six Problems for American Families
How bad is the Liberals’ plan to monitor bank accounts and transactions of $600 and more? Oh, let us count just some of the ways.
- The plan targets working class families. Look, the math just doesn’t work here. As CBS News notes, the IRS plan is ostensibly meant to “crack down on tax evasion by the wealthy,” not to police the bank accounts of those Americans who are just trying to get by. And by the way, that $600 is an annual total, not merely a single transaction. That means the G-men will be Eliot Nessing your kids’ summer jobs and babysitting money.
- The plan weaponizes—again—the IRS on behalf of one party (and guess what—it’s not the party of the working families). We saw this in the wake of the Tea Party movement following the 2008 election. The IRS eventually admitted fault, but by then, the damage was done.
- It’s looking for fraud in all the wrong places. Like the drunk who searches for his lost keys beneath the streetlight—“because the light is better”—the IRS makes it plain its agents will be looking for easy prey, not the alpha tax cheats it claims to seek.
- The IRS plan puts our private data at risk. The agency is notoriously bad at protecting our privacy. By forcing banks to report data on our accounts, our most personal information is at risk of being hacked, leaked, or misused against us.
- Banks will likely force the cost of compliance onto small businesses and families—whose finances are already stretching thin due to inflation and skyrocketing energy costs. What, you think your corporate bank loves you so much that it won’t bill you for the time and trouble it takes to comply with the IRS’s new rules? Wouldn’t that be nice. But let’s face it, the cost of banking is just one more cost that will likely go up under the Biden administration.
- The IRS will have unprecedented knowledge about your most common—and your most private—transactions. Like what? The donation you made to your church’s building fund. A handgun purchase. What cable channels you subscribe to. Your internet purchases. And because it covers things like Venmo, CashApp and PayPal, the IRS would have eyes where it’s never had them before.
Center for the American Child | Laurie Todd-Smith, Ph.D.
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