Home » Democratic Party Proposal to Monitor People’s Bank Accounts Controversial Yellen Concession | IRS | United States | Surveillance

Democratic Party Proposal to Monitor People’s Bank Accounts Controversial Yellen Concession | IRS | United States | Surveillance

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[Epoch Times October 20, 2021](Reported by the Epoch Times reporter Joseph Lord / compiled by Takasugi) US Treasury Secretary Janet Yellen made some concessions to a controversial proposal by Democrats , The proposal allows the IRS to obtain information from any American’s bank account, as long as the account’s transaction amount exceeds $600 within a year. Now, Yellen has expressed support for raising the threshold of accounts subject to surveillance to $10,000.

This bill was first announced as part of a $3.5 trillion settlement bill promoted by the Democratic Party. In order to dispel the worries of the moderates, Democratic leaders and lawmakers tried their best to promote the bill, saying that it was fully funded and had no substantial impact on the deficit or national debt.

The bill includes measures taken by the Internal Revenue Service to monitor the bank accounts of American citizens. Despite immediate strong opposition, the Speaker of the House of Representatives and California Democrats Nancy Pelosi (Nancy Pelosi) and Yellen firmly defended the IRS’s comprehensive reform plan.

Former Fed Chairman Yellen took over the U.S. Treasury Department in January. She said the target of this measure is those wealthy Americans who conceal their income from the IRS. Yellen said that with this measure, the IRS will be able to collect more taxes from the wealthy and reduce the “tax gap.”

Yellen said: “Our tax gap is expected to reach $7 trillion in the next ten years, that is, because individuals fail to report their income, there is a shortage of taxes collected by the IRS.”

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Now, Yellen has made a slight concession and supports raising the threshold of accounts subject to surveillance from $600 to $10,000.

Although she still supports the broad goal of narrowing the so-called “tax gap,” Yellen is more moderate on key aspects of the plan.

She said: “Under the current system, American workers actually pay all their income tax bills, and many high-income earners use this system to avoid billions of dollars in taxes.” “The core of the problem. The problem is that there are differences in the ways in which various incomes are reported to the IRS: opaque sources of income can often evade scrutiny, while the payment of wages and federal benefits is almost completely complied with.”

“This double taxation system is unfair and deprives the country of resources to fund core priorities.”

However, in response to concerns that the plan will target middle-class and low-income Americans, Yellen announced that some changes have been made to the initial measures. Among them, the most important thing is that the reporting threshold will be raised to US$10,000, which solves a key issue that critics worry about. They believe that the threshold of US$600 is too low to be monitored by the IRS.

Yellen also announced that “salary workers such as teachers and firefighters” will receive an “exemption” for this surveillance measure. It is unclear whether this exemption will extend to other middle-class working class in the private sector.

Yellen praised these new proposals as “protecting American workers.”

Yellen said: “Today’s new proposal reflects the government’s strong belief that we should focus on the richest people who have the highest income but do not pay taxes.”

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She concluded: “We will continue to work with congressional leaders to adopt this important measure to create a level playing field for workers and small businesses, raise taxes, and make our economy recover better.”

Since the proposal was announced, the Republicans have been critical of it.

The leader of the Republican Party in the House of Representatives and the Republican of California, Rep. Kevin McCarthy (Kevin McCarthy) said: “This surveillance program has crossed the line.” He called the proposal “non-American.”

Senate Minority Leader and Republican Senator Mitch McConnell (Mitch McConnell) of Kentucky stated that Democrats “hope to be effective against every ordinary American, just as they are all being audited by the Internal Revenue Service. In order to fund their huge spending spree.”

McConnell quipped: “I must have forgotten whether the president promised during the campaign that everyone would be subject to their own audit.”

Alabama Republican Senator Tommy Tuberville (Tommy Tuberville) in a statement condemned the proposal as “infringement of the freedom of every American who values ​​personal financial privacy and loves freedom.”

Editor in charge: Lin Yan#

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