Janet Yellen denies that the IRS is spying on Americans by monitoring $600 transactions.
Treasury Secretary Janet Yelland stated that a plan authorizing the IRS to monitor bank transactions exceeding $600 was intended to combat tax fraud among the ultra-rich, not to spy on ordinary Americans.
According to the Wall Street Journal, the Biden administration’s proposal would require banks to submit annual aggregate inflow and outflow figures to the IRS for bank accounts with at least $600 in balance or at least $600 in transactions.
The IRS estimates that the idea will produce $460 billion in tax revenue over the next ten years, but some Republicans have branded it a privacy violation.
During a Senate Banking, Housing, and Urban Development Committee hearing in September, Sen. Cynthia Lummis (R-WY) confronted Yellen, asking, “Do you dislike the American people so much that you need to know when they bought a couch?” “Or a calf?” Such a move, according to Lummis, would impose a “dramatic new regulatory burden for community banks and credit unions in Wyoming and abroad.” “There is a great deal of tax fraud and cheating going on.” The proposed $600 IRS reporting requirement for banks, Treasury Secretary @SecYellen tells @NorahODonnell, is “absolutely not” a method for the government to pry into Americans’ wallets, but rather a tool to hold billionaires accountable. pic.twitter.com/M3VKOhdtSu — The CBS Evening News (@CBSEveningNews) is on Twitter. 12th of October, 2021 Lummis co-sponsored an amendment to Sen. Mike Crapo’s (R-ID) $3.5 trillion spending package in August, aimed at preventing financial institutions from monitoring and disclosing taxpayer data to the IRS.
When questioned if the suggestion indicated that “the government is trying to peer into our pocketbooks?” by CBS News anchor Norah O’Donnell, Yellen defended the notion.
“Absolutely not,” Yellen said on Tuesday, “I believe our plan has been mischaracterized severely.”
“There was no reporting of particular transactions of any individual,” she added of the idea.
“We have a $7 trillion tax gap over the next decade,” Yellen remarked, “specifically, a deficit in the amount that the IRS collects due to people’ refusal to disclose the income that they have earned.”
When O’Donnell retorted that this only applied to “billionaires” and that ordinary Americans should not be subjected to such scrutiny, Yellen responded, “It tends to be among high-income folks whose. This is a condensed version of the information.