White House: Opposition to IRS snooping proposal driven by top 1% and lazy banks

·2 min read

The White House is contending opposition to its tax enforcement proposals, targeting amounts as small as $600, is based on banks being too lazy to deal with the extra paperwork.

The tax enforcement measures are aimed at helping pay for President Joe Biden's social welfare and climate spending package. The focus is on the wealthy rather than people with small bank accounts, according to White House press secretary Jen Psaki.

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"It should not be lost on anyone that the loudest opposition to these proposals and the biggest ad spending against them is from the biggest banks, who simply do not want to be bothered by additional reporting on inflows and outflows," Psaki told reporters Monday.

"I would note that the top 1% is responsible for $163 billion a year in owed but unpaid taxes," she added. "Let's be clear what this is about. It's about big banks deciding to protect the wealthiest Americans."

Critics have seized on an idea floated for the tentative $2 trillion social and climate framework that would compel banks to report to the IRS deposits and withdrawals made by accounts with more than $600 in activity a year.

Republicans have ripped the plan, arguing the IRS will have the "unprecedented power to spy on you."

"Why should we trust that this newfound power would not be abused? Under Obama, the IRS targeted conservative groups," Republican National Committee spokesman Tommy Pigott said in an email, mentioning former President Barack Obama.

House Speaker Nancy Pelosi acknowledged concerns created by the tax enforcement provision.

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"If people are breaking the law and not paying their taxes, one way to track them is through the banking measure. I think $600 — but that's a negotiation that will go on as to what the amount is," she told reporters last week.

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Tags: News, Biden, Biden Administration, White House, Joe Biden, IRS, Nancy Pelosi, Taxes

Original Author: Naomi Lim

Original Location: White House: Opposition to IRS snooping proposal driven by top 1% and lazy banks

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