WASHINGTON
– Sen. Chuck Grassley (R-Iowa) today joined Sen. Tim Scott (R-S.C.) and several
colleagues to introduce the
Prohibiting
IRS Financial Surveillance Act. This legislation will prevent the
Internal Revenue Service (IRS) from implementing Democrats’ plan to give the
agency access to transaction information of virtually every American.
“The
information that the Democrats are seeking is a complete invasion of privacy. The
average American shouldn’t have to explain every financial transaction to the
federal government. On top of that, this proposal would severely strain our
local banks and credit unions with significant implementation and administrative
costs,” Grassley said. “Unfortunately,
the IRS hasn’t demonstrated its ability to maintain confidentiality of the
taxpayer information it already collects. And it can’t be trusted to securely
maintain even more private information.”
“The
Democrats’ plan to allow the IRS to spy on the bank accounts of nearly every
person in this country, even those below the poverty line, should be deeply
concerning to anyone who values privacy and economic inclusion,” Scott
said. “Of the more than 7 million American households that are
currently unbanked, the majority are low-income, rural, and minority Americans.
Implementing the Biden reporting scheme will disproportionately harm those who
need greater access to our financial institutions and people living paycheck to
paycheck. My colleagues and I will not stop fighting the Democrats’
wrong-headed proposal to implement more federal government intrusion into our
lives.”
President Biden, Treasury Secretary
Yellen and the IRS are seeking access to every working American’s financial
information by requiring financial institutions to report to the IRS each and
every withdrawal and deposit that total at least $10,000. Under the Biden
reporting regime, a family whose monthly expenses total just $833 would still
be required to be reported to the IRS. Nearly every American, even those below
the poverty line, would be subject to this proposed reporting regime. The Prohibiting IRS Financial Surveillance Act would
prohibit the Biden administration’s proposed violation of privacy and federal
government overreach.
The Joint Committee on Taxation has
analyzed the proposal and found that it is likely to impact taxpayers in every
income bracket, including those making less than $50,000. Steven Rosenthal at
the left-leaning Tax Policy Center concluded the bank reporting requirement
proposal would, “in fact, bury the agency in a sea of unproductive
information.”
In
addition to Grassley and Scott, this legislation is supported by Sens. Mike
Crapo (R-Idaho), Pat Toomey (R-Penn.), Mitch McConnell (R-Ky.), John Thune
(R-S.D.), John Barrasso (R-Wyo.), Joni Ernst (R-Iowa), Roy Blunt (R-Mo.), John
Cornyn (R-Texas), Roger Marshall (R-Kan.), Thom Tillis (R-N.C.), Cynthia Lummis
(R-Wyo.), Steve Daines (R-Mont.), John Kennedy (R-La.), Jerry Moran (R-Kan.),
Kevin Cramer (R-N.D.), Richard Shelby (R-Ala.), Mike Rounds (R-S.D.), Richard
Burr (R-N.C.), Todd Young (R-Ind.), John Hoeven (R-N.D.), Cindy Hyde-Smith
(R-Miss.), Roger Wicker (R-Miss.), Marsha Blackburn (R-Tenn.), Jim Risch
(R-Idaho), Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Ben Sasse
(R-Neb.), Tom Cotton (R-Ark.), Mitt Romney (R-Utah), James Lankford (R-Okla.),
Jim Inhofe (R-Okla.), Dan Sullivan (R-Alaska), Josh Hawley (R-Mo.), Marco Rubio
(R-Fla.), Rick Scott (R-Fla.), Ted Cruz (R-Texas), Bill Hagerty (R-Tenn.),
Tommy Tuberville (R-Ala.), Lindsey Graham (R-S.C.), Ron Johnson (R-Wis.), Rand
Paul (R-Ky.), John Boozman (R-Ark.), Mike Lee (R-Utah), Susan Collins (R-Maine),
Deb Fischer (R-Neb.) and Rob Portman (R-Ohio).
