How government proposes to get what it’s owed
The answer from the Biden Administration has been to give the IRS the power to look at a few harmless pieces of information: money coming into, and out of your bank account. With this data, the administration expects to make sure everyone pays the taxes they owe, or as Treasury Secretary Janet Yellen put it: “what we believe we are owed.”
The “we” meaning the government. Not everyone is willing to go along with the relentless prying into bank accounts. As FEE’s Jon Miltimore writes:
…a former Kansas City Fed president argued the [proposed IRS] policy was a dangerous trap that was being laid for the middle class.
“It’s a massive search without a search warrant,” said Thomas Hoenig, who served as president of the Kansas City Fed from 1991 to 2011. “It will be the middle class and the upper middle class who will be caught in this.”
Hoenig also pointed out that, in contrast to wealthier Americans, most in the middle class do not have lawyers and accountants they can rely on to help them navigate matters with the IRS.
“In the collection of the data, there will be false positives,” Hoenig said. “That means individuals will be approached by the government about what they’re doing and they will have to spend additional funds to defend themselves. It’s a really bad idea.”
Hoenig also said the regulation would “cost billions,” since banks will have to collect the data and present it in a usable format for the IRS.
But remember: if you’ve done nothing wrong, you have nothing to hide, or fear, from the nice man from the IRS looking at your bank statements every week. Until you do.