COLUMBUS, Ohio (WKBN) – Ohio Treasurer Robert Sprague is joining other state treasurers across the country in fighting a Biden Administration plan that would require financial institutions to turn over account information to the Internal Revenue Service.
Bank accounts targeted would be those that have a $600 inflow or outflow.
The measure is an effort to close an unpaid tax revenue gap estimated to be nearly $175 billion annually.
Treasury Secretary Janet Yellen is urging Democrats to maintain the Biden Administration’s complete proposal to give the Internal Revenue Service greater resources to identify tax scofflaws.
The measure also includes $80 billion to expand staffing and enforcement efforts.
A letter sent to the Biden Administration from the State Financial Officers Foundation (SFOF) said that the group does not think the federal government should give the IRS the “unprecedented and unconstitutional power to peer into law-abiding citizens’ private financial accounts.”
|“The Biden Administration’s proposal is an outrageous assault on Americans’ liberties,” said Treasurer Sprague. “Their attempt at invading our private financial accounts not only erodes our rights and values as Americans, but it would also be dangerously burdensome to our financial institutions – both large and small. I’m proud to stand alongside my colleagues around the country to fight against this unprecedented and unnecessary intrusion.”|
According to the SFOF, the measure would impact 100 million Americans. They cited the millions of Americans who received CARES Act money, which included a weekly boost in unemployment benefits from the Federal Pandemic Unemployment Compensation Program (FPUC) for the 25 million Americans who lost their job during the pandemic, roughly $3,200 in Economic Impact Payments (EIP) and most recently Advanced Child Tax Credit Payments to millions of Americans. All of those recipients would fall under the $600 guideline.
“There is zero quantitative or qualitative evidence that this proposed measure will aid in collecting
taxes from tax evaders,” the treasurers wrote.