(FiveNation.com)- Not all Democrats are on board with every aspect of the White House’s massive social spending bill.
That was emphasized again Wednesday when 21 Democratic members of the House sent a letter to their leaders that called for one item to be removed from the proposal.
The rule in question would force banks to report all outflows and inflows of financial accounts in the U.S. to be submitted every year to the IRS, if they are in excess of $10,000. It would apply to all accounts, including investments, loans, savings accounts and checking accounts.
As the lawmakers wrote in their letter:
“While the intent of this proposal is to ensure all taxpayers meet their obligations — a goal we strongly share — the data that would be turned over to the IRS is overly broad and raises significant privacy concerns.”
One of the main concerns of these 21 Democrats is that the bill doesn’t provide a lot of information on how the IRS would plan to protect all of this financial data. As the proposal is written, the lawmakers say it would “erode trust in financial services providers.”
In addition, the lawmakers say that the rule as proposed wouldn’t affect the “wealthy tax evaders” that the law is supposedly targeting, but rather other people who are already following the law.
The letter continues:
“Given the privacy concerns this raises in addition to the significant burden that would be imposed on a broad range of businesses and financial institutions, we respectfully request that this proposal not be included in the Build Back Better package.”
What’s interesting about the letter is that it shows a viewpoint of liberals that seemingly lines up with opinions shared by Republicans and many representatives of the banking industry. Those two groups are staunchly against the proposal, for a number of reasons.
The National Republican Congressional Committee, for example, launched an advertising campaign that targets various House Democrats up for re-election in 2022, using this very proposal for IRS reporting against them. The ad, which has a Halloween theme, accuses the Democrats of “hiring an army of IRS agents to spy on your bank account.”
It’s an ad that would seem to be very effective at convincing voters that the proposal is a major intrusion on their privacy, when it’s not necessary.
On Wednesday, Iowa Representative Cindy Axne, one of the Democrats who signed the letter, released a statement saying:
“While I certainly think we need to be looking at ways to crack down on wealthy tax dodgers, I oppose implementing something that could up middle-class Iowa families and create massive amounts of red tape for our small community banks and lenders.”
The rule is currently in the proposed social spending bill that the White House and Democratic leadership is pushing. It’s not been settled upon yet, though, so there still is plenty of time for changes to be implemented to it.