PRESIDENT Joe Biden’s American Families Plan lets the IRS snoop on your bank account, PayPal & Venmo transactions.
In Biden‘s first address to a joint session of Congress on Wednesday, the president laid out his ambitious agenda for getting the country past the economic wreckage caused by the coronavirus pandemic.
Biden’s American Families Plan calls for spending $80billion on the Internal Revenue Service to increase tax compliance in the hopes of generating $700billion over the next 10 years to partially offset the plan’s $1.8trillion price tag.
The additional funding for the IRS will come directly from increased taxes of the rich and corporations.
“The IRS will crackdown on millionaires and billionaires who cheat on their taxes,” Biden said during his address to a joint session of Congress, adding that he was “not out to punish anyone.”
To find out if the rich are not paying their taxes, the president’s latest proposal will require banks and financial institutions to start telling the IRS what people have in their bank account.
This proposal “aims to provide the IRS information on account flows so that it has a lens into investment and business activity,” the Department of Treasury declared on their fact sheet.
“Providing the IRS this information will help improve audit selection so it can better target its enforcement activity.”
The additional funding for the IRS will allow the agency to hire 15 percent more enforcement staff.
The entire IRS budget for the current fiscal year is about $12billion, with $5.2billion reserved for enforcement activities.
That means Biden’s $80 billion funding increase, spread out over 10 years, amounts to a 150 percent increase in spending on tax audits and investigations.
Author: Israel Salas-Rodriguez