The good news is that Congressional Democrats have caved before the tsunami of outrage over their plans to have the IRS track every financial transaction or bank balance over $600 and have raised the limit to $10,000. The bad news is that they’re still trying to have the IRS track every transaction or bank balance over $10,000.
Treasury Secretary Janet Yellen said, “Today’s new proposal reflects the Administration’s strong belief that we should zero in on those at the top of the income scale who don’t pay the taxes they owe, while protecting American workers by setting the bank account threshold at $10,000 and providing an exemption for wage earners like teachers and firefighters.”
Republicans pointed out that this would still intrude on the privacy of every small business owner and many individuals who might have balances or transactions over $10,000, for everything from depositing daily restaurant earnings to saving for a car to making a down payment on a house.
We’ve heard this “It'll only trap rich crooks” claim before, when law enforcement was given civil asset forfeiture powers. It wasn’t long before they were happily abusing that power to seize cash, houses and other assets from innocent Americans who were lucky if they could ever get their rightful property back. Here are just 10 particularly egregious examples out of many:
Do you really think that if the IRS gets this snooping power, that agency or the politicians overseeing it won’t abuse it?
Besides, if the real target is very rich tax evaders, why is the threshold set at $10,000? People in that tax bracket spend that much on a watch or a designer gown to wear to a gala with AOC. Would they really risk audits and jail time over what they would consider sofa cushion change? $10,000 may sound like big bucks to you, but it’s nothing to the people the Democrats claim are the target. Setting it that low means you are the target.