The guys in Arkansas weighed in on the proposal to give the IRS a lot more information on Americans. And by Arkansas guys, we don’t just mean politicians. Those who would be most affected by the Biden administration’s proposal, i.e. the bankers, have also been heard.
The pros and cons have been tossed around these pages over the past couple of weeks. Still, we still have a few questions about the whole idea:
• If banks are required to provide the Infernal Revenue Service with information on all bank accounts that process more than $ 600 per year, how does that “target tax evaders”? Or drug dealers trying to launder money? We know of a few kids working at Sonic after school who would hit that threshold.
• The newspaper said the new regulations “would help find delinquent taxpayers and could add up to $ 7 trillion to the US treasury.” Seven thousand billion! That’s a lot of tax evasion. The general consensus is that taxing all the rich people in this country would not cover what the administration wants to spend over the next decade. So he will have to tap into the middle class to get the kind of money he wants. Getting $ 7 trillion more by forcing banks to report $ 600 would be a good start, right?
• How much will it cost banks, credit unions, and other financial institutions to monitor and report all of these accounts to the IRS? And whatever the cost, it will surely be passed on to their customers.
• Can the IRS even manage the information? Better said, can the IRS handle the information on all of those US bank accounts without that information being hacked or leaked? The IRS has already been armed. And hackers target him every day.
• Speaking of costs, by how much will the IRS increase? How many government workers will he still have to hire?
Most Americans know that everyone should pay the taxes owed. And those of us who play by the rules certainly don’t want other people to skate. But increasing the size of government doesn’t seem like the best way to collect taxes more efficiently.
There are too many questions on this proposal. And not enough answers. We must not.