WASHINGTON, DC – U.S. Senator Richard Shelby (R-Ala.), the former chairman of the Senate Banking Committee, today joined many of his Republican colleagues in introducing the “Prohibiting IRS Financial Surveillance Act,” a bill to prevent the Internal Revenue Service (IRS) from implementing Democrats’ plan to give the agency access to transaction information of nearly every American.
“The Biden administration’s misguided plan to let the IRS monitor law-abiding citizens’ private financial information is dangerous and invasive, and will have far-reaching, adverse consequences,” said Senator Shelby. “This should concern all Americans who value their privacy. I am proud to join many of my conservative colleagues in the fight to keep this deeply-flawed proposal from becoming law.”
“The Democrats’ plan to allow the IRS to spy on the bank accounts of nearly every person in this country, even those below the poverty line, should be deeply concerning to anyone who values privacy and economic inclusion,” said Senator Tim Scott (R-S.C.). “Of the more than 7 million American households that are currently unbanked, the majority are low-income, rural, and minority Americans. Implementing the Biden reporting scheme will disproportionately harm those who need greater access to our financial institutions and people living paycheck to paycheck. My colleagues and I will not stop fighting the Democrats’ wrong-headed proposal to implement more federal government intrusion into our lives.”
“Every American should be wary of giving the IRS more power and more tentacles into private financial transactions,” said Senator Crapo (R-Idaho), ranking member of the Senate Finance Committee. “The IRS bank reporting proposal is one of the biggest expansions of the agency’s authority we’ve ever seen, and is fundamentally flawed. I’m proud to support Senator Scott’s legislation to stop this proposal in its tracks and protect Americans’ personal, private financial information.”
“The Biden administration’s plan to allow the IRS to monitor Americans' bank accounts is a dangerous idea that will only prove to be worse over time,” said Senator Toomey (R-Penn.), ranking member of the Senate Banking Committee. “Today the administration wants to know your annual account inflows and outflows. What will they demand access to tomorrow? I’m glad to join Senator Scott and Senator Crapo in working to ensure this terribly flawed proposal never sees the light of day.”
In addition to Senators Shelby, Scott, Crapo, and Toomey, the bill is co-sponsored by Senate Republican Leader Mitch McConnell (R-Ky.), Senate Republican Whip John Thune (R-S.D.), and Senators John Barrasso (R-Wyo.), Joni Ernst (R-Iowa), Roy Blunt (R-Mo.), John Cornyn (R-Texas), Roger Marshall (R-Kan.), Thom Tillis (R-N.C.), Cynthia Lummis (R-Wyo.), Steve Daines (R-Mont.), John Kennedy (R-La.), Jerry Moran (R-Kan.), Kevin Cramer (R-N.D.), Mike Rounds (R-S.D.), Chuck Grassley (R-Iowa), Richard Burr (R-N.C.), Todd Young (R-Ind.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Roger Wicker (R-Miss.), Marsha Blackburn (R-Tenn.), Jim Risch (R-Idaho), Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Ben Sasse (R-Neb.), Tom Cotton (R-Ark.), Mitt Romney (R-Utah), James Lankford (R-Okla.), Jim Inhofe (R-Okla.), Dan Sullivan (R-Alaska), Josh Hawley (R-Mo.), Marco Rubio (R-Fla.), Rick Scott (R-Fla.), Ted Cruz (R-Texas), Bill Hagerty (R-Tenn.), Tommy Tuberville (R-Ala.), Lindsey Graham (R-S.C.), Ron Johnson (R-Wis.), Rand Paul (R-Ky.), John Boozman (R-Ark.), Mike Lee (R-Utah), Susan Collins (R-Maine), Deb Fischer (R-Neb.), and Rob Portman (R-Ohio).
The following contains background information regarding the ongoing situation:
- President Biden, Treasury Secretary Yellen, and the IRS are seeking access to every working American’s financial information by requiring financial institutions to report to the IRS every withdrawal and deposit that total at least $10,000.
- The Republicans’ legislation, the “Prohibiting IRS Financial Surveillance Act,” would prohibit the Biden administration’s proposed violation of privacy and federal government overreach.
- Under the Biden reporting regime, a family whose monthly expenses total just $833 would still be required to be reported to the IRS.
- Nearly every American would be subject to this proposed reporting regime – even those below the poverty line.
- The Joint Committee on Taxation has analyzed the proposal and found that it is likely to impact taxpayers in every income bracket, including those making less than $50,000.
- Steven Rosenthal, from the liberal-leaning Tax Policy Center, concluded the bank reporting requirement proposal would, “in fact, bury the agency in a sea of unproductive information.”