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Politics Biden administration pushing to include IRS proposal in spending bill despite criticism

22:55  27 october  2021
22:55  27 october  2021 Source:   thehill.com

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

  White House: Opposition to IRS snooping proposal driven by top 1% and lazy banks 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. © Provided by Washington Examiner 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.

President Biden delivers remarks at NJ Transit Meadowlands Maintenance Complex in Newark, N.J. on Monday, October 25, 2021. © UPI Photo President Biden delivers remarks at NJ Transit Meadowlands Maintenance Complex in Newark, N.J. on Monday, October 25, 2021.

The Biden administration is still working to include a version of its IRS bank-reporting proposal in Democrats' social spending package, according to an administration official, following criticism about the proposal from Sen. Joe Manchin (D-W.Va.) and several other Democratic lawmakers.

The administration official said there are efforts to adjust the proposal so that it focuses on taxpayers making over $400,000, and that negotiators are looking at whether a carve out could be created for those with income under that threshold.

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.

The administration earlier this year proposed requiring financial institutions to report on existing IRS forms the total amount of money that came into a bank account during a year and the total amount that came out of it. The proposal is aimed at strengthening the IRS's ability to conduct enforcement on high-income taxpayers, and its proponents say it would raise revenue to help finance Democrats' spending priorities.

The initial version of the proposal would have imposed the reporting requirement for accounts with more than $600 in deposits and withdrawals, but congressional Democrats modified the proposal to raise the threshold to $10,000 and exempt wage payments. The administration now is considering additional changes to the proposal.

Washington Post fact-checker goes to bat for IRS spying proposal

  Washington Post fact-checker goes to bat for IRS spying proposal The "fact-checking” genre is one of the most reliably dishonest and worthless forms of journalism. © Provided by Washington Examiner The Washington Post published a fact-check this week flunking Republican Sens. Mike Crapo of Idaho and John Kennedy of Louisiana for accurately criticizing the Biden administration’s since-amended proposal to empower the IRS to collect data on all bank accounts that see more than $600 in annual transactions. This is not a lie or hyperbole. The White House absolutely did propose this.

Banks and GOP lawmakers have aggressively criticized the proposal, arguing that it is an invasion of privacy.

In recent days, a growing number of Democratic lawmakers have also raised concerns. Notably, Manchin, a key moderate Democratic senator, raised objections during an event Tuesday by The Economic Club of Washington D.C.

The efforts to make new adjustments to the IRS reporting proposal come as Democrats are struggling to figure out how to pay for their spending package. Manchin has also raised concerns about a proposal to tax billionaires' investment gains annually, while Sen. Kyrsten Sinema (D-Ariz.) has indicated that she doesn't want to raise tax rates.

COVID-19, corporate taxes, Iran nuclear deal on Biden's agenda for Day One of G-20 summit .
The G-20 summit that opened Saturday in Rome will mark the first time in two years that some of the world's most powerful leaders have met in person.Biden arrived at the modernist, cloud-shaped convention center in Rome where the Group of 20, or G-20, is meeting and was welcomed by Italian Prime Minister Mario Draghi. A few minutes later, he joined other leaders for a traditional "family photo.

usr: 1
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