Democrats Double Down on IRS Spying Proposal

As part of their multi-trillion dollar tax and spending spree, Democrats have proposed granting the IRS sweeping new powers to monitor Americans’ bank accounts. Fearing backlash from voters concerned about privacy and abuses of power, Joe Biden and congressional Democrats are reportedly considering raising the reporting threshold from $600 to $10,000.

However, even with certain transactions exempted, the proposal would require banks to report sensitive information to the IRS if more than $10,000 moved through the account for purchases like groceries, school supplies, vacations and car payments – this would include “many non-wealthy taxpayers.” Republicans, financial industry leaders and community banks have united in opposition to the big government power grab.

Washington Post: But opposition to the measure is not limited to Wall Street, and has extended to community banks influential with much of the congressional Democratic caucus. Republican attorneys general in more than a dozen states have written Biden and Yellen saying the plan is “unacceptable, illegal, and contrary to the well-founded constitutional principles against illegal searches and seizures.”

“I think [Democrats are] still likely to not get much traction with this,” said Doug Holtz-Eakin, a Republican policy expert formerly at the nonpartisan Congressional Budget Office.

To counter the Biden-Harris administration’s proposal, Republicans in both chambers of Congress introduced legislation banning federal agencies from requiring financial institutions to submit customers’ sensitive financial information.

Fox Business: Rep. Ashley Hinson, R-Iowa, introduced the bill in the House of Representatives, saying in a statement, “The push to include this provision in reconciliation, along with $80 billion to nearly quadruple the IRS budget, is reflective of how backwards Democrat priorities are right now – we need more border agents, not more IRS agents.”

“The IRS should not be snooping in our bank accounts,” Hinson told FOX Business’ “Varney & Co.,” adding, “That’s exactly what President Biden wants to happen, it’s what these Democrats want to happen.”

Bottom Line: Even under Democrats’ revised proposal, the IRS will still have access to sensitive financial information of working- and middle-class families.