'I think this proposal has been seriously mischaracterized': Janet Yellen defends plan for IRS to snoop on accounts with more than $600 and claims it will help make billionaires pay more tax | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

'I think this proposal has been seriously mischaracterized': Janet Yellen defends plan for IRS to snoop on accounts with more than $600 and claims it will help make billionaires pay more tax

The Treasury Secretary has defended plans to monitor bank transactions of more than $600, insisting that the scheme was designed to end 'tax fraud' by billionaires, and would not mean Americans' accounts were recorded.

The new proposal requires financial institutions to annually report the total amount that went in and out of the bank as well as loan and investment accounts if within that year the accounts hold a value of at least $600 or if the total transactions are $600 or more in a year.

More simply, this means that if total funds flowing in and out of a credit or debit account equal at least $600, banks have to report those figures to the IRS. This includes paychecks or money transferred from apps like PayPal.

Amid the backlash in Congress, some proposed raising the threshold from $600 to $10,000.

But Treasury Secretary Janet Yellen insisted on Tuesday that there was a lot of unwarranted panic.

Webmaster's Commentary: 

If the issue were really billionaires, then a $10,000 threshold would be sufficient (along with cracking down on off-shore accounts). This is about spying on ordinary Americans.

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