The more we learn about the Biden Administration’s so-called infrastructure bill, the more sinister it gets. The latest piece of news is how Democrats want to weaponize banks against the Americans who use them.
The American Families Plan (AFP) aims to recover tax revenue the federal government loses out on due to under-reporting, non-compliance, or otherwise. The stated goal is sound, but in the latest installment of For the People Act and Equality Act Orwellianisms, the reality of the AFP is pretty scary.
All these measures are done under the guise of lost taxation on non-wage assets. These are easier to cheat on or lie about than wages, which the Internal Revenue Service recovers at a rate of about 99 percent. But compliance on other sources of income is estimated at just 45 percent. This disproportionately benefits the wealthy, because they make so much of their money from non-wage sources.
Alas, this is the sad reality of as complicated a tax system as we have: the rich can afford to game it so they will. The poster child for this is limousine liberal Warren Buffett, who insists the rich should pay more taxes while he pays as little as he can.
We can debate what the right tax rate is or isn’t, but whatever it is, people should pay it. Americans dodging their debt created an annual tax gap of nearly $600 billion in 2019, according to the Treasury Department, which predicts that will add up to about $7 trillion over the next 10 years.
So to close that gap, Biden’s plan is to increase verification from third-party information reports — that sounds harmless, but what it means is he’ll turn banks into enforcement arms for the IRS. Under this plan, banks and other institutions would be responsible for filing out a 1099-NEW reporting form.
Indeed, Biden’s planned takeover of our banking system would also require these financial institutions to report two additional numbers: total inflows and total outflows. It would also allow the IRS to analyze income on foreign accounts, income from businesses organized as partnerships, and previous audits. In essence, this would allow the government to monitor Americans’ finances more strictly than Biden ever would actual terrorists.
Noted champions of government authoritarianism Ron Wyden, D-Ore., and Elizabeth Warren, D-Mass., want the IRS to just outright file people’s taxes for them. As some critics have observed, the only way the IRS could possibly provide a functional tax prep portal is if it completely outsourced its production and operation, to the tune of billions of taxpayer dollars.
This is like making us pay for the very gulags they’re going to send us to!
This kind of draconian takeover of our financial system will further incentivize the mega-rich tax evaders — like Al Sharpton, Obama White House aides, and Hunter Biden — to find other means to conduct business.
This plan will, according to Treasury’s own estimates, recoup about $700 billion over the next decade — only 10 percent of the aforementioned $7 trillion the IRS is expected to lose. This means that the plan isn’t a plan for capturing lost taxes, but rather empowering the federal government to encroach on our lives and subvert our freedoms even more than it already is.
This ''pulls almost all taxpayers into a surveillance dragnet,'' Sen. Mike Crapo, R-Idaho, said, noting, ''The era of big data should not be viewed as an opportunity for big brother.''
The Democrats want to discourage lawlessness — unless it’s at our southern border or criminals rampaging through our city streets — and insist that people pay the taxes they owe. They say they want to advance necessary investments in American children and families — unless they’re forcing those children to inherit horrifying amounts of debt.
One sound piece of the proposal would modernize the outdated, 1960s-era technology the IRS uses to identify tax evasion. Biden is eager to replace this ancient system – because of course he’s had no chance to do so in the last 50 years.
All of this coincides with Biden’s plan to swell the IRS’ ranks by 87,000. Given that leftists are perfectly comfortable deploying financial terrorism against their opponents — like they’ve done with alternative social media platforms, firearms manufacturers, and a pillow salesman — it seems pretty apparent these IRS agents will be deployed to harass political opponents. Letting the federal government get its tendrils into our banks is bad for all of us.
Jared Whitley is a long-time politico who has worked in the U.S. Congress, White House and defense industry. He is an award-winning writer, having won best blogger in the state from the Utah Society of Professional Journalists (2018) and best columnist from Best of the West (2016). He earned his MBA from Hult International Business School in Dubai. Read Jared Whitley's reports — More Here.
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