Critics of the proposal have erroneously suggested that the IRS would track information about individual transactions. The administration said the IRS would not monitor specific customer transactions, but would instead use account information to detect discrepancies between it and what individuals reported on their tax returns.
“Banks and their high net worth clients lie bluntly, saying they would see individual transactions, and Republicans are backing them,” Ms. Warren said.
The Biden administration insists that audit rates for those earning less than $ 400,000 would not increase and that the program was focused on collecting unpaid taxes from the rich.
But Republicans, who have expressed distrust of the IRS for years, continued to criticize the proposal as an invasion of privacy. It is familiar ground. In the 1990s, Republicans orchestrated well-attended hearings into IRS abuses that described the agency as out of control. In 2013, Republicans accused the IRS of targeting conservative groups, although the political targeting extended beyond party lines.
“Whether it’s $ 600 or $ 10,000, under this proposal, the intimate financial details of everyone in this room – at a minimum, every American who has a job – will be turned over to the IRS on a daily basis,” Senator John Kennedy, Republican of Louisiana, told reporters despite the proposed exemption from payroll deposits. “What could go wrong?” “