Joe Manchin (D-WV) is a hero. He’s pushing the boundaries of the Democratic party because he has a moral and ethical responsibility. President Joe Biden’s administration thinks they can use the IRS to get transactional information from American bank accounts to tax them more. The excuse is that it shouldn’t be a problem if you aren’t doing anything wrong, but that shouldn’t be the focus. If you’re doing something wrong, then the IRS needs to have a reason to investigate. It is an innocent “until proven guilty” situation, just as any governmental investigation should be.
After Biden’s insane proposal, his spending bill was paid for, but Biden isn’t counting on Democrat resistance. His arrogance has gotten the best of him, and he’s currently playing for it.
The original amount that the IRS was looking at was $600 off in and out account activity in a single year. That would be everyone making over $11.50 per week ($600 divided by 52 weeks in a year). The new amount is $10,000, which would include anyone who makes over $193 a week. Save the “going after billionaires” speech and be realistic with this. To make $10,000 a year as a business, you’re going to have to pay out money for products, shipping, etc., which means that your actual revenue from the business would be much lower than the $10,000 the IRS is looking for. It would also only include businesses that are done on the side because $10,000 for actual income isn’t going to take you very far.
It is an attempt to go after every American. Not just the billionaires.
This will mean that people will use different bank accounts to do business with and diversify their incoming and outgoing currency if it gets passed, which it’s unlikely to. Honestly, it doesn’t matter if it’s $1 million. The IRS doesn’t deserve or require this new “feature” to audit American citizens. They have ways to do that, and again, there has to be a reason to audit.
Interestingly, there’s such a large gap between $600 and $10,000, yet this change was supposed to cool tensions and make all of us okay with the change. The new $10,000 amount is almost 17 times the original proposal which says a lot about the offer. They knew it was so low that they could encompass everyone and therefore had foreknowledge that it wasn’t just the billionaires they were targeting, and it isn’t right now, either.
When asked about the IRS proposal, Manchin said, “The president and I had this conversation. I said, ‘Mr. President, I don’t know who put this out and how it got screwed up,’ but when they said we’re going to start looking at $600 transactions, even if it’s $10,000, okay, that’s only $800 or $900 a year. And I said, ‘do you understand how messed up that is? To think that Uncle Sam’s going to be watching and what it does for bankers and this and that?’ And I told him, I said, ‘Mr. President, I don’t know what happened. It cannot happen. It’s screwed up.’”
Of course, it is. When the conversation happened, Manchin said that the staff members looked around at each other, figuring out who screwed up and who was to blame. Manchin also said Biden said he was right on that one, and Manchin thinks it will be gone.
If Democrats pushed hard enough, they would have to answer more questions about their intent, and with the 2022 midterm elections coming up, there’s no doubt that there would be less support for Democrats than there already is.