Top House Democrat defends IRS bank reporting proposal, but appears poised to remove it from bill
Sen. Joe Manchin said on Tuesday Democrats’ The proposal for banks to report the inflows and outflows of multiple bank accounts to the IRS is “bad” and will not be in the final bill, despite what many Democrats in Congress had hoped.
“I said, ‘Do you understand how crazy it is to think that Uncle Sam is going to see?’” Manchin, DW.VA, said he told President Biden during their meeting on Sunday. “I said, Mr. Speaker, I don’t know what happened. It can’t happen. It’s bad.”
Manchin described the shocked Biden employees, who were “all looking back and forth at each other, ‘Who in the hell did this?’”
Munchkin said the president said, “I think that’s right.”
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“So I think it’s going to go,” Manchin said, implying that the proposal would not be included in the Democrats’ final reconciliation bill.
Munchkin’s comments follow Democrats’ efforts over the past two weeks to push proposals, which Treasury Secretary Janet Yellen has championed not only to fund her bill but also to close the tax gap.
The proposal will initially apply to all bank accounts with more than $600 inflows and outflows over the course of a year. Banks would be required to send the IRS how much money went into the account and how much was withdrawn over a one-year period.
But after a massive backlash, Democrats said it would only apply to those who receive $10,000 in deposits in their bank accounts who are not wages per year, or who receive at least $10,000 from their wages per year. spend more.
House Democratic Caucus Speaker Hakeem Jeffries, D.N.Y., defended the motion Tuesday after being asked about Munchkin’s comments. But he and caucus vice chairman Pete Aguilar, D-California, appeared to leave the door open for other revenue raisers to reject the proposal.
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“95% of everyday Americans, who are salaried workers who work nine to five jobs, pay their taxes on a weekly basis due to deductions,” Jeffries said in response to a question from Granthshala News. “We need to close the tax gap … that tax avoidance [by the rich] Super lawyers and accountants are largely being obtained by the wealthiest among us, and are engaged in the routine practice of trying to avoid paying the taxes they are legally due.”
Jeffries said: “Finding where there is common ground in the House and Senate is an important part of the process.”
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“Members have raised similar concerns about this as a burden on smaller financial institutions. We understand that. But as the chairman mentioned, it’s about tax avoidance,” Aguilar said. “We’ll work out the details of what it will look like.”
Democrats are scrambling to reach an agreement on a framework for their reconciliation bill before President Biden leaves the country on Thursday. This, Democratic leaders hope, will allow progressives to prevent a bipartisan infrastructure bill from being held hostage in the House and give the president victory before moving to a climate summit in the United Kingdom.
It’s unclear if this will be possible, as there are still major disagreements on many of the issues in the huge, potentially multi-trillion-dollar bill.