In an exchange between Wyoming Senator Cynthia Lummis (R) and Treasury Secretary Janet Yellen that occurred during Tuesday’s Senate Banking Committee hearing, Lummis decried Yellen’s proposal to have banks report to the IRS the (allegedly aggregated) “inflows” and “outflows” to/from all accounts larger than $600.
Yellen’s response was to describe the already extensive invasion of personal financial data the IRS demands and to pooh pooh the added reporting because it’s only two additional pieces of easily ascertained information onto the 1099-INT form.
the IRS has a wealth of information about individuals if you work at a job where you get labor income
Invasion, isn’t enough, though. Yellen added that Government has a $7 trillion tax gap between what Government will collect in taxes and what folks allegedly will owe over “the next decade.”
…there are a class of partnerships, businesses, high-income individuals who have opaque sources of income that the IRS doesn’t have direct information about, and that’s where the tax gap is, not low-income people.
Yellen then justified the $600 threshold with this—and she actually was serious:
so that individuals can’t game the system and have multiple accounts.
Sure. Because a family with a $400,000 annual income—President Joe Biden’s (D) threshold for being Evil Rich—is going to set up 650+ bank accounts just to hide that. Or a business in a cash-intensive industry—bars, restaurants, construction companies, et al.—are going to incur the added expense of setting up myriads of $600 accounts in order to disguise their finances.
This is the cynicism of the Biden-Harris administration regarding us average Americans.