A $10K Bank-Snooping Threshold Would Intrude On Millions | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

A $10K Bank-Snooping Threshold Would Intrude On Millions

Bowing to pressure from banks and taxpayers concerned about a proposal to require financial institutions to report to the IRS gross inflows and outflows for just about every account in the country, Democrats have attempted to quell concerns by raising the threshold. Unfortunately, even the raised threshold is still laughably low to accomplish Democrats’ stated purpose of cracking down on wealthy tax cheats.

The original proposal would have required financial institutions to report on any account (be it a checking account, savings account, stock portfolio, etc.) which handled more than $600 in inflows and outflows in a given year.

Obviously, that’s just about every account.

But the new proposal isn’t much better. This time, the threshold would be set at $10,000, and exempt payroll deposits. In other words, if a given taxpayer received $20,000 in payroll deposits, they would only exceed the threshold were other deposits and spending, taken together, to exceed $30,000.

That sounds at first glance like a big difference, but unfortunately it would still affect millions of Americans of modest means. After all, $10,000 a year comes out to just over $830 a month in spending. And while payroll deposits would be exempted, many Americans don’t make their income through traditional biweekly payroll deposits.

Small business owners and the self-employed, for example, often don’t receive a payroll check. With the rise of the gig economy, freelance work has exploded - Gallup research found that 44 million Americans were self-employed at some point during a given week in 2019. Meanwhile, there are well over 30 million small businesses in the United States.