U.S. Treasury Secretary Janet Yellen answers questions during the Senate Appropriations Subcommittee hearing on Capitol Hill in Washington, D.C., June 23, 2021. (Greg Nash/Reuters)
Some Republicans are challenging Treasury Secretary Janet Yellen’s claim that a tax enforcement provision in the $3.5 trillion reconciliation bill will only target high income tax evasion.
Republican Senator Cynthia Lummis of Wyoming argued to Fox Business that the proposal, which would allow the IRS to monitor all transactions in bank accounts with more than $600, normalizes a level of data extraction from average Americans that is a major encroachment into the private sector and personal liberties.
“No amount of explaining will change the fact that this $600 reporting threshold is completely unacceptable, a massive government overreach, and gives the IRS data they can’t manage properly,” Lummis told the network.
“Secretary Yellen is essentially implying the American people are regularly committing tax fraud,” she added. “Throwing out ‘innocent until proven guilty,’ this rule would facilitate unwarranted snooping by the IRS.”
In response to Republican outrage over the rule, Yellen clarified in an interview with CBS that banks would report full-year inflow and outflow information from bank accounts rather than monitoring individual