In the wake of a controversial Biden administration proposal that would require banks to provide the IRS with data on any individual financial transaction over $600, a group of Republican-led states are fighting back, with more being urged to join the battle, according to the Daily Wire.
Under the proposed plan, banks and other types of financial institutions would be under an obligation to report the inflows and outflows of their customers’ accounts whenever a transaction exceeds $600, as Fox Business noted, a program that could yield an estimated $463 in additional tax revenue in ten years.
In response, a number of states led by Republican administrations indicated their unwillingness to comply, including West Virginia and Nebraska, and soon thereafter, Treasurer Scott Fitzpatrick of Missouri declared, “I will stand up to this government overreach and protect the privacy of those account holders.”
Fitzpatrick continued, “Turning over their transaction data to the federal government is illegal under Missouri law and a gross violation of Missourians’ expectation of privacy when it comes to their personal financial records,” adding, “I will not turn this information over to the IRS voluntarily and will fight in court to block any attempt by the federal government to compel my office to comply with this mandate.”
Treasurer Riley Moore of West Virginia joined in opposition to the plan, opining, “The impact this is going to have on community banks, this is like Dodd Frank on steroids. In terms of compliance, a community bank, just to be able to be in compliance, to set that type of regime up is just going to put them out of business.”
“So who wins?” asked Moore, adding, “The big banks win. The same banks that were bankrolling Biden’s campaign in 2020,” further asserting, “The $600 requirement is absolutely unconstitutional. It’s a massive invasion of privacy; it’s huge government overreach. I don’t think any state should comply with this.”
Officials in GOP-led states are not alone in cautioning against adoption of the Biden proposal, with over 40 banks recently sending a letter to House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) in which they said it would result in a “tremendous liability” by requiring the aggregation of such data for most Americans “without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information,” Fox Business noted.
Senate Minority Leader Mitch McConnell (R-KY) added his voice in dissent as well, penning an opinion piece for the Louisville Courier-Journal in which he called Biden’s plan an “unprecedented expansion of government surveillance” that “should leave everyone alarmed and outraged.”
As McConnell bluntly put it, “In effect, Washington liberals want to let the IRS leaf through Americans’ checking accounts as if everyone were a potential criminal or terrorist until proven otherwise,” and that is a proposition against which every citizen must firmly stand.