In testimony before Congress, the Commissioner of the IRS said that he wants banks to be required to report every transaction, deposit or withdrawal, for any bank account having $600 or more. Senate Democrats say they are making progress on getting the votes to ensure this is included as part of any spending plan.
Once we get past the immediate absurdity of the thought, logic brings us to the same conclusion. Once banks spend the money to report every single transaction of these accounts, hundreds of millions of them each with who knows how many deposits and withdrawals each year, the IRS has to hire people to go through those hundreds of millions of reports on accounts. The cost would be large, even aside from the blatant invasion of privacy for no practical financial reason.
The IRS says that the measure is to make sure people are paying taxes. But let’s get real-if we are trying to increase federal revenue to pay for the largest spending plan in history by tracking every move of someone with $600 in the bank then we are really in bad shape. No, this is not about catching tax cheats, it’s about control.