Would generate $460 billion in taxes over 10 years to help pay for Democrats' struggling $3.5 trillion spending bill
WASHINGTON, D.C. (Texas Insider Report) — The Biden Administration and Congressional Democrat's proposal to require financial institutions to give the IRS detailed information on any American's bank account with a balance of $600 or more in order to help pay for their struggling $3.5 trillion spending bill hit a snag Friday, as Attorneys General in 20 states co-signed a letter to Treasury Sect. Janet Yellen arguing that the proposal "stands in direct opposition to privacy that Americans are entitled to and deserve."
While Biden’s Treasury Secretary, former Federal Reserve Chair Janet Yellen (above with Biden,) has been defending the Democrat's proposal, the Republican Attorneys General from 20 states are now on record standing in opposition by writing a letter dated last Friday, October 1th, 2021.
The Biden Administration, as well as Treasury Department projections, say the policy change – which also tentatively requires reporting of those accounts with at least $600 in annual transaction for IRS access – will generate $460 billion in tax revenue over the next 10 years which they say is required to help pay for Democrats' struggling $3.5 trillion spending bill.
Asked last week whether the proposal will be included in the House's final version of the bill is still being negotiated, House Speaker Nancy Pelosi said:
“If people are breaking the law and not paying their taxes, one way to track them is through the banking measure,” said Pelosi, leader of the Democrat-controlled House.
The 20 Republican Attorneys General's letter states the proposal – which would have the federal government "combing through almost every American’s bank account without cause, or even suspicion" – is "illegal and contrary to the well-founded constitutional principles against illegal searches and seizures."
The 20 Attorneys General's letter also follows a group of Congressional Republicans and others last month opposing the proposal.