Biden’s proposed IRS bank account supervisor meets state resistance
A White House or Congress can come up with all kinds of controversial policies, as it does now, but state lawmakers can fight back in a number of ways. Such resistance is now underway in the Maine Legislature, with lawmakers in other states likely to follow suit.
A resolution presented to the Maine House of Representatives today, September 22, urges U.S. Senators Susan Collins (R), Angus King (I) and the rest of the Maine Congressional delegation to oppose the proposal President Joe Biden to empower the IRS to monitor the aggregate inbound and outbound transactions of personal and business bank accounts whose value or total transactions exceed $ 600 in value, which traps the majority of active bank accounts. As noted in the new state resolution filed by Maine Representative John Andrews, âPresident Joe Biden wants the IRS to have automatic access to information about every U.S. bank account as well as every PayPal, Venmo and CashApp, even without any charges. wrongdoing.
âThis is an unprecedented federal intrusion into the financial lives of everyday Americans,â said Representative Andrews. “This is an extension of the state of surveillance and it is time to push back. As state lawmakers, it is our duty to stand up, be proactive and protect those we represent. This resolution should be filed and supported in every state in the country. Lawmakers must be bold and find ways in their state statutes to legislatively quash this unconstitutional abuse of power. ”
Representative Andrews’ resolution highlights that over 96 million Americans use peer-to-peer payment transaction applications and that millions of Americans who use such applications will be subject to taxation on transactions over $ 600 if President Biden’s proposal passes. Just as the tobacco and vaping tax hikes proposed in Congress are regressive and disproportionately harm low-income households, the White House IRS empowerment proposal will also weigh unfairly on those whose means are relatively modest.
The state resolution introduced in Maine points out that 54% of Cash App users have a credit score below 600; and that peer-to-peer transaction applications have never been a proven facilitator of significant tax evasion. Biden’s proposal is unlikely to thwart widespread tax evasion, but it will create administrative headaches for many employers.
“IRS Doesn’t Have To Snoop Into The Bank Accounts Of Small, Honest Employers” Ryan ellis, president of the Center for a Free Economy and registered agent with the IRS, said about the White House’s proposal on the IRS. “These nit-picking tax audit schemes were born in faculty lounges and moldy bureaucratic files thanks to tax law professors who never had to fill out a payroll or file a corporate income tax return.”
As the Maine resolution points out, President Biden seeks to grant the IRS sweeping new powers to violate American privacy, as well as tens of millions of dollars in additional annual funding to a government agency that “already has demonstrated a reluctance or inability to protect taxpayer information through its leak of tax return data to Pro Publica. The resolution then cites a 2017 report by the Inspector General of the Treasury for Tax Administration (TIGTA), which found that the IRS “has consistently bypassed or ignored due process requirements when investigating taxpayers for violating the $ 10,000 foreign exchange transaction requirements that exist under the Bank Secrecy Act. ”
If Representative Andrews’ resolution passes in the vote, the Maine House of Representatives would formally urge the Maine Congressional delegation “to oppose this unprecedented intrusion into the privacy of all Mainers and Americans.” . Representative Andrews also tables a bill, “A Law to Protect Financial Privacy,” to enact statutory changes that can be made to block the Biden administration’s efforts to snoop around bank accounts without a warrant or court order. , at least for those who live in the state of Maine.
State legislatures “will always be not only vigilant guardians, but also wary and jealous of the rights of citizens against federal government encroachments,” Alexander Hamilton predicted in Federalist Paper Number 26. Hamilton added that state legislators “will have their attention is constantly alerted to the conduct of national leaders and will be sufficiently ready if anything improper seems to sound the alarm to the people and to be not only the voice but, if necessary, the arm of their discontent.
The vigilance and willingness of state lawmakers to protect their constituents from the kind of federal overshoot Hamilton described is exactly what Rep Andrews is now demonstrating in Maine. This momentum has also manifested itself this year in the form of lawsuits brought by more than 20 state attorneys general against the provision of the American Rescue Plan Act, the $ 1.9 billion spending bill approved in March, which aims to ban state tax cuts.
While Hamilton’s aforementioned prediction of over two centuries ago has been confirmed by the actions of Representative Andrews and other state officials this year, the United States’ First Secretary of the Treasury has not all-in. In Federalist Number 17, written at the end of 1787, Hamilton asserted that it would “always be much easier for state governments to encroach upon national authorities.”
As evidenced by the political agenda currently being pushed by the Biden administration and Congressional Democrats – which involves a federal takeover of state-run electoral systems, a federal preemption of right to work laws in 27 states, and a attempt to ban state tax. Relief, to name just a few of the top legislative priorities – Hamilton was wrong in predicting that states are more likely to encroach on federal authority than the other way around.
Don’t be surprised if lawmakers, governors and officials from other states join with lawmakers in Maine in taking action to resist White House and Congressional proposals to expand federal authority at the expense of government governments. States and the American people, which is a central theme of the major policy changes currently underway in Washington.