[ad_1]
Never let a crisis go to waste. For years, this model has been used by power-hungry governments to restrict freedom and limit individual rights.
Amid the COVID pandemic, the Biden administration is hoping the public will be too wrapped up in battles over health and safety issues to notice one of the largest and most intrusive power takeovers in recent memory.
As part of his effort to “find” funds for his latest multibillion-dollar government spending program, President Biden and his allies, Senator Elizabeth Warren, are trying to hold financial institutions to account. withdrawals and deposits from individuals.
A provision in the President’s proposed US Family Plan requires your personal bank or credit union or even platforms such as Venmo, Paypal, or Facebook, to send a report to the IRS each year with detailed information on how and where you receive and spend your money. Security concerns alone with wholesale sharing of customer financial information to comply with this legislation should be enough to sound alarm bells and whistles.
As usual, these progressive forces disguise their proposal by targeting the “rich” and putting an end to “tax cheats”. The president’s website says the plan “will revitalize the app so the rich pay what they owe.”
These claims seek to obscure the scrutiny of every American’s financial situation.
If the administration really cared about only the wealthiest taxpayers, the plan would require reporting only accounts with, say, more than $ 250,000 in transactions. Instead, they set the floor at $ 600. This means that if your daughter has a lemonade stand that brings in $ 601 per year, her income will be reported to the IRS.
It is not really “tax evasion of the rich” that Senator Warren claims to be targeting.
This proposal will also unfairly target people living in non-traditional or multigenerational households. If your teenager has a part-time job or receives monetary checks or gifts that go to your account, be prepared for the IRS to come and ask you why you didn’t report this on your taxes. If someone doesn’t have a bank account, but uses an account in their parents’ or spouse’s name to deposit their paycheck, be prepared for Uncle Sam’s questions about your financial transactions.
Finally, like so many “progressive†policies, it will unduly harm racial and ethnic minority groups.
According to Forbes, 22% of American adults are not or underbanked and 6% have no bank accounts. Instead, they rely on a combination of check cashing, money order, or other alternative financial services. Federal data indicates that racial and ethnic minorities are much more likely to be unbanked or underbanked; these groups have often historically been excluded from mainstream services and have reported high levels of distrust of financial institutions. Instead of working to resolve these systemic problems, the Biden administration and its progressive allies in Congress are creating fear and discouraging the opening of financial accounts. This will continue to exacerbate the financial difficulties encountered in traditionally marginalized communities.
Make no mistake: the richest 1% of taxpayers will come armed with accountants and lawyers to help them organize their finances to avoid excess taxes. Single-parent families, people with part-time Etsy shops, and young families simply don’t have the time or resources to fight the federal government. This new IRS rule will massively target and harass middle-class, minority and multigenerational households.
No one should be drawn to the promise of more federal freebies in the president’s plan – all Americans should be united in opposing this dangerous and intrusive grant of power to the IRS.
Allison Ball, a Republican, is serving her second term as Kentucky State Treasurer. She can be contacted at [email protected].
Allison Ball, a Republican, is serving her second term as Kentucky State Treasurer. She can be contacted at [email protected].
[ad_2]
