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Democratic leaders unite to oppose invasive IRS reporting regime
In a NAFCU-supported letter sent last evening to House Speaker Nancy Pelosi, D-Calif., and House Ways and Means Chairman Richard Neal, D-Mass., Democratic lawmakers joined to express their strong opposition against the invasive IRS reporting regime. The group urged Pelosi and Neal to withdraw the proposal and instead create “a more targeted approach” to closing the tax gap.
“While the intent of this proposal is to ensure all taxpayers meet their obligations—a goal we strongly share—the data that would be turned over to the IRS is overly broad and raises significant privacy concerns,” wrote the group. The authors of the letter, which included Representatives Lou Correa, D-Calif., Vicente Gonzalez, D-Texas, and Cyndi Axne D-Iowa, pointed out the lack of substantial information on how this reporting regime would protect and ensure financial data security.
“This proposal would erode trust in financial services providers,” the lawmakers stated.
Of note, the authors highlighted that many of their own constituents reached out directly, calling on Congress to reject this proposal, even with the increased threshold to $10,000. NAFCU has encouraged credit unions to get involved in these efforts and voice their opposition to Congress.
Objection to the provision continues to gain momentum as both sides of the aisle join the wave of opposition including Sen. Joe Manchin, D-W.Va, who recently criticized the proposal calling it ”screwed up.”
NAFCU remains at the forefront of this issue and continues to push for its exclusion in the budget reconciliation package. Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress and view the association’s advocacy page on this issue for more information.