(RepublicanDaily.org) – Earlier this year, a worrying revelation about the IRS came to light. The Biden administration and Democrats in Congress revealed plans to require financial institutions to report on a huge portion of their clients’ banking data to the agency. The agency claimed the measure aimed to reduce tax fraud, but many privacy advocates expressed concerns about its effect on individuals. Now, state governments are starting to push back.
Nebraska State Treasurer John Murante recently announced his state was against the proposal and would refuse to enforce it. He added that, if the Biden administration pursued legal action against Nebraska over this issue, he would happily go “all the way to the Supreme Court.”
Nebraska has become the first state promising to defy Biden’s proposal that would have banks report every transaction over $600 to the IRS.
“If the Biden administration sues me, we will take it all the way to the Supreme Court,” state treasurer John Murante told FOX Business.
— Julia (@Jules31415) September 30, 2021
The proposition forms part of the massive social spending bill currently under consideration by lawmakers. It would cost the taxpayer an estimated $79 billion. Under the terms of the scheme, banks would have to report every single financial transaction executed by accounts holding $600 or more. Following pushback, Democrats conceded the limit might have to increase, but they still appear keen to pass some kind of reporting measure along these lines.
The state of Nebraska is not the only opposition the idea is facing. The Consumer Bankers Association and the American Bankers Association have also expressed reservations about it. These mounting objections could bring the project to an end.
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