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Politics Controversial Democratic IRS bank reporting proposal is likely dead, Manchin says

18:55  26 october  2021
18:55  26 october  2021 Source:   washingtonexaminer.com

Democrats face growing storm over IRS reporting provision

  Democrats face growing storm over IRS reporting provision Democrats are facing a firestorm of criticism over a proposal to increase the amount of bank account information reported to the IRS, posing a challenge as they craft their wide-ranging social spending bill.The proposal is a top priority of the Biden administration, which argues it will help the IRS go after wealthy tax cheats. But it has come under a barrage of attacks from banks and Republicans, who say it raises significant privacy concerns. Financial institutions have been mobilizing their customers to speak out against the proposal to lawmakers.

A controversial proposal to have banks report account information to the IRS is likely dead, Sen. Joe Manchin said Tuesday.

  Controversial Democratic IRS bank reporting proposal is likely dead, Manchin says © Provided by Washington Examiner

The centrist and key swing vote on the partisan legislation said on Tuesday that he spoke to President Joe Biden about the proposal, which envisioned banks reporting all account inflows and outflows of over $10,000 to the IRS to crack down on tax fraud. After the meeting, he noted it would probably not be in the plan.

Manchin said he told Biden the idea was “screwed up” and that the president concurred.

“So, I think that one is going to be gone,” the West Virginia Democrat said during an appearance at the Economic Club of Washington on Tuesday morning.

Video of Joe Manchin Telling Bernie Sanders 'Never Give Up' Viewed Over 123,000 Times

  Video of Joe Manchin Telling Bernie Sanders 'Never Give Up' Viewed Over 123,000 Times The two senators are haggling over climate change initiatives in Biden's Build Back Better plan. But the plan cannot succeed without either man's vote.Video captured Manchin and Sanders walking together from the Capitol building on Monday evening. After asking reporters to take photos of the two men, Manchin then put his arm around Sanders.

The Washington Examiner reached out to the White House about Manchin’s comments but did not immediately receive a response.

DEMOCRATS NARROW IRS BANK REPORTING PROPOSAL TO $10,000 TRANSACTIONS

The first iteration of the proposal cast an even broader net and would have targeted all inflows and outflows over $600. However, that was met with fierce opposition from the banking industry and Republicans on Capitol Hill.

The idea has been championed by Sens. Ron Wyden of Oregon, who heads the Finance Committee, and Elizabeth Warren of Massachusetts. The proposal was also endorsed by Treasury Secretary Janet Yellen.

Wyden noted that IRS Commissioner Charles Rettig testified the tax gap could be as high as $1 trillion per year and that the reporting proposal would narrow that gap, which represents the amount of taxes owed versus the amount paid.

Democrats narrow scope of IRS proposal amid GOP attacks

  Democrats narrow scope of IRS proposal amid GOP attacks Democrats on Tuesday narrowed the scope of a proposal to increase the amount of information the IRS receives about bank accounts, amid a massive lobbying effort against the proposal from banks and Republicans that threatens to jeopardize its prospects.Democrats are seeking to blunt the attacks, stressing that the proposal is aimed at strengthening the IRS's ability to enforce tax laws against wealthy tax cheats."Despite what opponents say,Democrats are seeking to blunt the attacks, stressing that the proposal is aimed at strengthening the IRS's ability to enforce tax laws against wealthy tax cheats.

“Working people pay their taxes voluntarily because they know their employer is sending their numbers to the IRS,” Wyden said. “A wealthy business owner, on the other hand, is on an honor system. The arguments against information reporting have always been the same, and they've always been wrong.”

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Republicans believe the bank reporting requirements violate privacy and would be logistically challenging. The GOP has pointed out the IRS recently had a massive leak of taxpayer documents to a media outlet, further degrading public trust in the institution.

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Tags: News, Joe Manchin, IRS, Bank, Taxes, Congress

Original Author: Zachary Halaschak

Original Location: Controversial Democratic IRS bank reporting proposal is likely dead, Manchin says

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usr: 3
This is interesting!