When even President Joe Biden seems to be thinking of a way to raise tax revenue through the IRS is “screwed up,” it must be pretty bad.
However, this should be one of the foundation elements of how Democrats will pay their massive $ 3.5 trillion spending bill. Allegedly, to catch tax fraudsters trying to withdraw money from various bank accounts to reduce the payment of taxes, the bill would require banks to report all inflows and outflows. of accounts with a specific amount of activity per year.
The figure was originally $600 – something that could affect almost every American. After the outcry, Democrats raised the $ 10,000 limit on consolidated transactions before an account must be reported.
According to Fox Business:
Biden praised the provision in a speech, on Sept. 16.
Biden said, “It would ask just for two pieces of information from the banks of these folks — the amounts that come into their bank accounts and the amounts that go out of their bank accounts,” adding it was so people would “pay what they owe, what the existing tax code calls for.”
Democrat Senator Joe Manchin of West Virginia said, “The president and I had this conversation,” Discussing the massive $3.5 trillion spending bill.
Manchin said about the proposal, “I said, ‘Mister President, I don’t know who put this out, but that’s screwed up.’”
“Do you understand how messed up that is? This cannot happen. It’s screwed up,” Manchin said he told Biden.
Manchin said, “[Biden] says, ‘I think Joe [Manchin] is right on that,’So, I think that one’s going to be gone.”
Manchin also agreed that raising the reporting threshold would not solve any problems.
In a Daily Mail report, Manchin said, “Even if $ 10,000 is only $ 800, $ 900 a [month].”
Democrats have argued that their plan is to pay for their spending program by targeting wealthy individuals who aren’t paying their fair share in taxes.
The IRS transaction tracking proposal says otherwise. The government is trying to secure the ability to monitor the accounts of average Americans, not just billionaires.
This does not imply an interest in merely making sure that the super-rich are paying their taxes, as proponents in Congress have claimed.
If the IRS wants to have access to the bank accounts of normal Americans it can only mean that the government sees an opportunity to squeeze some extra taxes out of them at some point in the future.
Biden might agree that it is “screwed up” but he certainly isn’t doing anything to put a stop to it at the moment.
Manchin has already confirmed that there is no adjustment his fellow Democrats could make to the plan which would convince him to abandon his opposition.