$79B unexpected amount for IRS included in $3.5T budget reconciliation bill
The state of Nebraska is saying a big “no” to the Biden administration’s plan that would give the Internal Revenue Service huge government surveillance power over US bank accounts every day.
“My message is really simple. The people of Nebraska entrusted me with protecting the privacy of these accounts and I’m not going to follow through. If the Biden administration sues me, we’ll take it to the Supreme Court.” We’re going to fight every step of the way,” State Treasurer John Murante told Granthshala Business in an exclusive interview.
The proposal, which is roughly $79 billion of the $3.5 trillion spending bill, would give the IRS more power to force the IRS to report customer account inflows and outflows of $600 or more to the IRS. The White House has estimated that the policy, which would apply to bank, loan and investment accounts, could generate about $463 billion in additional revenue over the next decade.
Murante believes other state treasurers will follow his opposition lead. “We have members across the country who are committed to a limited government and free market approach, and we are unanimously against this proposal. It is an invasion of privacy and lacks any due process,” he said.
Opposition to Banks to Extend Access to Accounts to IRS
Protests are growing with groups including the American Bankers Association publicly opposing the move. Additionally, Richard Hunt, president of Consumer Bankers, believes the data could be used for personal and business customers.
“Now that they have the data, they are going to slice and dice and look at every single transaction of almost every American,” Hunt said during an interview on Granthshala Business, “Mornings with Maria,” adding, “I’m afraid if this doesn’t pass it may force some people not to come into the banking system, and we need people in the banking system.”
Despite the pushback, Treasury Secretary Janet Yellen continues to advocate for additional IRS powers. Earlier this week, during her testimony on Capitol Hill, she defended the bill’s purpose when pressed by Sen. Cynthia Lumis, R-Vyo.
“I think it’s important to recognize that we have a tax gap that’s estimated to be $7 trillion over the next decade,” Yellen said. “These are taxes that are due and not being paid to the government that deprive us of the resources we need to make significant investments to make America more productive and competitive.”
A Senate vote on a comprehensive $3.5 trillion bill, which includes massive social programs and climate-friendly economic initiatives, will take place on Thursday.