The 78th United States Treasury Secretary Janet Yellen is very concerned about tax evasion, according to statements she made in an interview with CNBC’s “Squawk Box” on Oct. 5. Yellen claims there is a “huge tax gap” and she insists that financial information about the source of income can be “hidden”.
Janet Yellen says “information gathering is routine”
The U.S. Treasury Secretary wants lawmakers to push Biden’s “U.S. Family Plan tax compliance agenda” in order to fix the problem. The proposed legislation, if passed, would require banks to report all inflows and outflows of at least $ 600 to the IRS.
In mid-September, Bitcoin.com News reported that Janet Yellen and IRS Commissioner Charles Rettig had called on lawmakers to pass the “U.S. Family Plan Tax Compliance Program”. The proposed legislation aims to cause all financial institutions to report deposits and withdrawals of $ 600 or more to the US tax agency, regardless of tax payable. Despite the apparent bank reviews, privacy activists, and even state treasurers, Yellen once again forbidden the idea.
On the surface, the tax compliance program is aimed at high net worth individuals according to the Biden administration. The information collected “would be useful indicators of where to conduct an audit,” she said. During the interview, Yellen learned that a number of Republican lawmakers believed the legislation was intrusive on financial privacy. “Well of course they do,” Yellen remarked. The Treasury Secretary said the concept was not new.
“Right now, on every bank account that earns more than $ 10 a year in interest, the banks report the interest earned to the IRS,” Yellen said. “It’s part of the information base that includes the W2 and dividend reports from other income that taxpayers have earned. The collection of information is therefore routine. Yellen added:
This is just some information about individual bank accounts, nothing at the transaction level that would violate confidentiality. So it doesn’t report individual transactions or anything like that. And it would be a simple thing for banks and other payment providers to provide along with the other information they already provide.
3 state treasurers believe tax compliance proposal is pure “undue invasion of government”, “flagrant invasion of privacy” and “unconstitutional invasion”
There are many people who disagree with Yellen’s statements that the reporting is just routine. Missouri State Treasurer Scott Fitzpatrick told the press that his government would not comply with Biden’s tax plan.
“I will oppose this excessive government and protect the privacy of these account holders,” Fitzpatrick said. “Handing over their transaction data to the federal government is illegal under Missouri law and a gross violation of Missourians’ expectations of confidentiality with respect to their personal financial records.” Fitzpatrick continued:
I will not voluntarily pass this information to the IRS and will fight in court to block any attempt by the federal government to force my office to comply with this mandate.
Missouri isn’t the only state that has said it will not comply with Joe Biden’s “U.S. Family Plan Tax Compliance Program”. West Virginia and Nebraska have both said the states will not allow the mandate to be fulfilled. West Virginia State Treasurer Riley Moore said only mega-banks would benefit from the trend, which he called an “unconstitutional invasion” in a statement to the Daily Mail.
“The impact this is going to have on community banks is like Dodd-Frank on steroids,” Moore added. “In terms of compliance, a community bank, in order to be in compliance, putting in place this type of regime will simply bankrupt them. So who wins? The big banks are winning. The same banks that were funding Biden’s campaign in 2020. ”Moore concluded:
The $ 600 requirement is absolutely unconstitutional. It’s a massive invasion of privacy, it’s a huge government overreach. I think no state should comply with it.
What do you think of Biden and Janet Yellen’s “U.S. Family Plan Tax Compliance Program” defending the proposed declaration? Let us know what you think of this topic in the comments section below.
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