As opposition continues to grow in response to a Biden administration proposal that would require banks to report information on any account with $600 of activity over the course of a single year, House Speaker Nancy Pelosi (D-CA) insists that such a plan will indeed remain in her party’s reconciliation spending bill, but the exact dollar threshold may yet be subject to negotiation, Fox Business reports.
Under the plan at issue, banks as well as other types of financial institutions would be under a new obligation to report inflows and outflows of customer accounts whenever transactions exceed $600, in a plan designed to yield an additional $463 billion in tax revenue over ten years.
Not surprisingly, backlash over such an invasive scheme has taken hold among bank executives, a number of Republican state officials across the country, and everyday Americans, yet Pelosi remains unmoved, saying that “Yes, there are concerns that some people have. But if people are breaking the law and not paying their taxes, one way to track them is through the banking measure.”
The only small hint of a potential concession in response to the complaints being lodged about the concept came when the speaker added, “I think $600 – that’s a negotiation that will go on as to what the amount is. But yes.”
Despite Pelosi’s apparent intransigence on the issue, Republican governors and others are voicing their willingness to fight back against the proposal, with Missouri Treasurer Scott Fitzpatrick among the most outspoken, as the Daily Wire noted.
“Turning over [account holders’] 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,” Fitzpatrick declared, 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.”
Executives from more than 40 banking institutions recently sent a letter to Pelosi as well as House Minority Leader Kevin McCarthy (R-CA) declaring that such a rule change would create “tremendous liability” in that it would force the aggregation of data for just about every account holder in America “without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information,” as Fox Business reported separately.
Labeling the very idea of such a rule an “unprecedented expansion of government surveillance” that would “let the IRS leaf through American’s checking accounts as if everyone was a potential criminal or terrorist until proven guilty, Senate Minority Leader Mitch McConnell (R-KY) added his voice to the chorus of dissent.
Though Pelosi seems to be standing firm at present regarding what most would perceive as an unacceptable invasion of financial privacy, given her recent inability to bring about the sort of legislative consensus for which she has long been so famous, the future of this controversial plan may be far from certain.