(LibertySociety.com) – Last week, the Biden administration dropped a hotly-contested proposal to monitor bank accounts containing $600 or more from its reconciliation bill.
Although Democrats reduced the original $3.5-trillion bill down to $1.75 trillion in social and climate spending, the money to pay for the legislation has to come from somewhere. Language within the package gave the government permission to monitor cash flow in any account that moved $600 or more in a calendar year. That proposed breach of privacy would affect many Americans and sparked concern among Republicans and other citizens, forcing the Biden administration and Senate Democrats to eliminate the threshold.
(POLL) 99% are against proposal for IRS monitoring of bank accounts with $600 or more https://t.co/dUT716i6Yb
— Sharyl Attkisson🕵️♂️ (@SharylAttkisson) October 28, 2021
If included, the $600 trigger would have alerted the Internal Revenue Service (IRS) to movements that might have caused a tax audit for those individuals, and brought in an estimated $400,000 annually to help pay for the enormous infrastructure proposal. On October 19, the Treasury Department announced a $10,000 per year transaction amount as a revised approach to signal the possible need for an audit instead. Then just nine days later, Democratic legislators removed the provision altogether.
Senate Democrats originally included the new proposal to bring in the necessary income to pay for part of the package by targeting wealthier Americans they claim are cheating the system by utilizing tax loopholes.
Now that the new revenue source for the bill is gone, lawmakers either need to include another way to pay for the shortfall with new revenue, or the spending will only add to the overall federal debt.
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