Taxes

Biden's 'American Families Plan' Sends the IRS To Snoop on Bank Transactions, Venmo Accounts

The White House says cracking down on tax cheats will generate $700 billion over 10 years to help offset a $1.8 trillion expansion of welfare programs.

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To pay for a glut of new federal spending, President Joe Biden on Wednesday announced plans to hike taxes on businesses and wealthy Americans—and to sic the federal tax cops on everyone.

Biden's American Families Plan calls for spending $80 billion on the Internal Revenue Service (IRS) to increase tax compliance in the hopes of generating $700 billion over the next 10 years to partially offset the plan's $1.8 trillion price tag. The $700 billion that will supposedly come from stepped-up tax enforcement will be the largest single funding source for the American Families Plan—the revenue from tax enforcement is six times larger than what will be produced by raising the top income tax rate back to 39.6 percent.

The additional funding for the IRS will allow the agency to hire 15 percent more enforcement staff. The White House's fact sheet on the American Families Plan says the additional resources will be aimed primarily at high-earners and corporations. "The IRS will crack down on millionaires and billionaires who cheat on their taxes," Biden said during his address to a joint session of Congress on Wednesday, adding that he was "not out to punish anyone."

Everyone should pay the taxes they owe, of course, but it is virtually certain that a beefed-up IRS will create new headaches for banks, financial institutions, and anyone who uses them. Biden says he's targeting only the wealthiest Americans, but his own Treasury Department is already signaling that increased tax enforcement will require hoovering up more data from bank accounts and third-party payment providers like PayPal and Venmo.

Among other things, that means banks and third-party apps will be required to give the IRS data about account holders' "aggregate account outflows and inflows," the Treasury Department said in a statement on Wednesday.

"This reform aims to provide the IRS information on account flows so that it has a lens into investment and business activity," according to the Treasury's statement. "Providing the IRS this information will help improve audit selection so it can better target its enforcement activity."

Keeping an eye on the inflow and outflow of bank accounts won't automatically tell the IRS that someone is hiding unreported, taxable income, The Wall Street Journal notes. But it would be a "first step" in determining how much additional scrutiny might be necessary.

Think of it as giving another opportunity for the federal tax cops to establish probable cause for a financial stop and frisk. And that comes after Biden has already ordered the IRS to give greater scrutiny to transactions in the so-called sharing economy.

The entire IRS budget for the current fiscal year is about $12 billion, with $5.2 billion earmarked for enforcement activities. That means Biden's $80 billion funding increase, spread out over 10 years, amounts to a 150 percent increase in spending on tax audits and investigations.

But Biden is throwing so much new funding at the IRS that it isn't clear whether the agency will be capable of using it all. "I'm not sure you'd be able to efficiently use that much money," John Koskinen, who ran the IRS for part of the Obama presidency, tells The New York Times. "That's a lot of money."

It sure is. And it won't just be the rich paying the costs.

NEXT: The FDA Wants To Lower Nicotine in All Cigarettes, Which Will Make Smokers Smoke More

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  1. Tyranny is here.

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      1. The IRS will be contacting you soon, christopher.

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    2. No it was shown the door on 1/20/21—-The End of an Error.

      1. You really don’t understand what tyranny looks like if you think that’s accurate.

        1. It wasn’t accurate. It was an error. Said so himself.

  2. Why don’t we all just go on welfare? Then increase welfare benefits even further.

    1. Good luck with that because you literally have to be dirt poor broke to qualify for a measly food stamp. I’m not sure where you rightwingers got this idea that welfare recipients live a comfortable life.

      1. Depends on what you call comfortable.

        I see people on welfare with roofs over their heads, free cable and free internet, free smart phones, full stomachs, free medical care, with a beer in one hand and a joint in the other. Most of them have cars as well.

        They seem perfectly happy with the arrangement.

        1. Here in Louisiana they’re living in asbestos shingled one room dumps in shithole neighborhoods getting harassed by cops cause their cars can’t pass an inspection.

          1. Oh yeah and the cops are from the countryside and they hate the city they police. These cops even buy billboards to advertise how much they despise the residents.

            1. Of course there is violence in the city because of seemingly intractable problems. And naturally people have all sorts of opinions on what to do about it and what’s causing it. And if you’re not careful with how you react to the disfunction the news around here can turn you into a monster.

              1. do they have feet?

                1. After all of these years being kept on the Democrat plantation, leaving doesn’t even occur to them.

                2. The Indians took them.

          2. That’s not welfare.

            That’s Louisiana.

            1. That’s what I was going to say.

              1. Maybe glibs will laugh.

          3. They can always earn money. Just hafta work for it.

            1. Right but my small point was that poor people aren’t living it up on welfare.

              1. But all you can back up is that some people on welfare aren’t living comfortably.

          4. Where in Louisiana, Strudle?

          5. Not out in most of the rest of LA or the rest of the country.

        2. Probably all drunks.

      2. I’m not sure where you got the idea that you need to be dirt poor to get food stamps.

        1. For a family of three, the poverty line used to calculate SNAP benefits in federal fiscal year 2021 is $1,810 a month. Thus, 130 percent of the poverty line for a three-person family is $2,353 a month, or about $28,200 a year.

          1. That’s a middle class income in much of Europe, and well off in much of the world.

      3. Well don’t worry. Biden and friends are doing everything they can to make sure everyone qualifies.

        Do you leftwingers not understand that?

    2. How many Billions does a person need?…is it a contest?

  3. adding that he was “not out to punish anyone.”

    Yes, that’s the job of the IRS now.

    Still looking forward to the result of the Maricopa audit. The best we can hope for now is that more people will wake up.

    1. Prepare to be disappointed.

      1. I can dream

        1. Did you get a permit?

    2. “The IRS will crack down on millionaires and billionaires who cheat on their taxes,” Biden said

      So does that include him and his family? What about the majority of Congress?

    3. Who’s paying for that audit? and who’s conducting it…Sore losers grasping at straws.

  4. >>Everyone should pay the taxes they owe, of course,

    taxation is theft. try again.

    1. This place has, for sure, awoken.

      Reason is the laughingstock of “libertarianism.”

    2. Taxes are the price of development and civilization, and it is worth it. Oliver Wendell Holmes, Jr

      1. And world wars.

  5. The White House says cracking down on tax cheats will generate $700 billion

    How much of that will come from investigating the Clinton and Biden “foundations”?

    1. Nothing from Trumps as it was closed down!
      Donald Trump’s troubled charity foundation has agreed to close down amid allegations that he and others illegally misused its funds.
      The move was announced by the Attorney General of New York State.

  6. You know who won’t be getting audited, his name rhymes with “hidin'” and he’s got sticky fingers.

    Wow does this recall the 90s or what. Lots of fed government abuses, and slick willies tail waggin the dog.

    1. “slick willies tail waggin the dog”

      Guessing this round of foreign adventurism/domestic distraction won’t go as painlessly as bombing the Serbs did. And at that, we came awfully close to throwing down on Russian Army regular soldiers.

  7. Tax law is valid law like any others and we lose hundreds of billions of lost tax money from tax cheating. These are mostly rich doing the cheating. We do need more enforcement.

    Let’s also note that there are many commentators here that are ok with police killing people just for resisting arrest, so why are you all ok with tax cheating?

    1. Boot licker.

    2. When rich people evade taxes, they are probably investing the money productively, instead of yielding it to a consumption-oriented (and probably wasteful) government. It could be argued that they are doing society a great good by evading taxes.

      1. One could argue that, but they would be wrong. We know that rich people do not invest in ways that are economically productive. Just the opposite. They put their money in stocks, and then demand corporate dividends and stock by-backs that divert money from where it could be productive into their own pockets.

        1. We know that rich people do not invest in ways that are economically productive. Just the opposite. They put their money in stocks…

          You just contradicted yourself. Putting money in stocks is the definition of investing in an economically productive manner.

        2. Please don’t pretend you understand rich people and what they do.

          You understand what talking heads have told you about rich people.

          1. +

        3. People who invest in IRAs for retirement is productive. It is just money to be income taxed and spent later.

          The truly rich who buy a house or yacht is productive. The stocks and other equities they will just move around to avoid the tax so government will only collect a fraction of the tax. They will support stock buybacks to collect dividends. I don’t have a problem with that but the government will.

        4. The answer to that is for you to get rich and give it all to the government. Otherwise fuck off.

    3. Tax law is valid law

      Legalized theft is still theft. Get up off of your damn knees.

    4. Nuremberg Laws were also valid laws. JS.

    5. Say it with me “FLAT TAX” Everyone pays a flat percentage of income (I know this is were it could get messy, do Congress members consider their profits from insider trading income? Discuss.)

      No write off’s, non-profit exemptions and no deductions. States and municipalities do it so can the fed, The fed’s would have to give up their bribery inducing tax plans for special constituents however.

      How did Nancy get that $26,000 freezer stocked with $18 a pint ice cream? Stocked I’d wager by undocumented servants. I’m completely sure ‘ol Nan taxes their wages, and pays unemployment and worker comp premiums for her multitude of worker bees.

      1. And it should be capped at 10%.

    6. Income Tax law actually isn’t valid. The guy that never paid income tax proved it by going through all of the historical records and finding that some states marked as yes never voted to ratify, and 2 or 3 states voted no, but congress changed their vote. The court said fuck you anyway and threw him in jail. The income tax is literally the federal government having the biggest gang

    7. Any thoughts on the shooting of Ashli Babbitt?

      And I do not support anybody extracting wealth from people under the threat of violence, whether it be government or not.

      1. Reason has done a fine job covering her murder in all zero articles about her.

    8. Nope plenty of blue collared tax avoidance. We call them side jobs, weekend/night work for cash.

    9. Molly, a huge point of this that you’re missing is that the amount of revenue that will be raised by this enforcement action is nowhere near $700B. Biden is “paying” for this initiative with made up bullshit numbers.

      Assuming the IRS can effectively use the influx of money, which is unlikely, there’s no way that the tiny number of millionaires and billionaires that we have are cheating to the extent of $50 billion a year.

      I can’t believe that anybody believes this garbage, but then, there is you.

      1. We need to give the IRS more money so it can better take more money to better get more money to better take more money so it can get more money to take more money…it’s like a perpetual growth machine or something.

    10. Let’s also note that there are many commentators here that are ok with police killing people just for resisting arrest, so why are you all ok with tax cheating?

      The cops were justified because only leftists got mad and protested. Leftists are wrong about everything and shall not be appeased. That alone makes the actions of the police totally and completely justified. To say otherwise is to give in to leftists. No need to look at a video or hear testimony. Politics is all that matters.

      1. Oh. Youre still doing this retarded hyperbolic strawman shit.

        Youre a troll like WK admitted to and like Jeff.

      2. By the way… you arguing for a standard that is less than beyond a reasonable doubt and calling yourself a libertarian is hilarious. To think the standard used to be better one guilty man free than 10 innocent men be caged.

        But nope. You want to ignore the actual evidence and succumb to political prosecutions because you’re a victim of the right. Quite funny actually.

        1. I think that’s 10 guilty going free to avoid one falsely imprisoned.

    11. Actually the rich being more likely to be audited are less likely to cheat. If a taxpayer has high risk of being audited they are less likely to cheat. Most of the cheating is by individuals in the black market economy & those in the legitimate economy that is transacted primarily in cash. The wealthy & corporations can afford the best accounting firms & tax attorneys to assure compliance while minimizing their tax liabilities. The IRS’s employees & DOJ attorneys aren’t the sharpest tools in the shed. The sharp tools are all in private practice. There is a reason the IRS hasn’t collected the taxes from Warren Buffet that are in dispute.

      1. The poor get audited more then the rich.

    12. “These are mostly rich doing the cheating. ”

      This is absolutely, positively, bullshit.

      The vast majority of tax fraud happens in cash transactions in the labor class. Do you pay a landscaper guy to keep your yard? Do you think he accurately reports his income? And do you think the people who work for him are paying taxes? That handy man who painted your fence? How about that person selling hotdogs in front of the stadium? The guy you pay for pain pills on the side?

      Hell, there is a reason why when you go to the barber, they have signs that say “Tips are Great, Cash tips are Greatest!”. It is so that they can evade taxes.

      In total, around 2010 the IRS was saying that roughly $500 Million per year is lost on this type of p2p cash transactions which are not reported as income. Personally, I don’t have a problem with that. But it should at least advise your class-obsessed marxist bullshit.

      If you want everyone paying their fair share of taxes, it is absolutely the poor who will get hammered for it. Not the rich.

      1. I don’t pay anybody to do most of what you are describing–except for the pain pills. I do it myself. I get my medicine through a licensed and credible doctor and pharmacy–all of whom pay their taxes. I have also bussed and waited tables before–and I know that what service personnel receive in tips is merely a drop in the bucket compared to what the Donald Trumps in the U.S. are doing to avoid paying to sustain the system that allows them to maintain their wealth at our expense.
        Go for it, IRS !

    13. These are mostly rich doing the cheating.

      LOL–I worked as a waiter for several years. There’s more lying about income in one week at an average restaurant than in a year on Wall Street, and that’s saying something.

      1. I’m putting the dinner on the card, but the tip is in cash was a rule I adopted long ago. A friend of mine who waitressed all through college and beyond assured me that, as long as one wasn’t a stingy tipper, doing that was preferred by the waitstaff. Having cash on hand was good for making change and “tipping out” busboys/girls and barkeeps. IRS adopted rules assuming average tips for various types of establishments years ago. IMS, it was 8% for most places undergoing a “tip audit.”

  8. Too bad we don’t have a 4th Amendment worth a damn in this country.

    1. You wanted a government more powerful so it could ‘help’ the helpless – well it’s ‘helping’. Good and hard.

    2. What do you get when you cross an aging dementia case with a political party seeking one-party rule, in a society that is dominated by hyper risk-averse, emotionally fragile people?

      I’ll tell you what you get–you get what you fucking deserve.

      1. Beats what we had before–an ignorant narcissist case using the Republican Party in an attempt to attain totalitarian control while enriching himself at our expense !

  9. Biden’s American Families Plan calls for spending $80 billion on the Internal Revenue Service (IRS) to increase tax compliance in the hopes of generating $700 billion over the next 10 years to partially offset the plan’s $1.8 trillion price tag.

    Hmm. How about spending $240 billion “in the hopes of” covering the price tag *and* making a profit?

  10. The Biden administration is just like Top 40 AM radio back in the day. The hits just keep on coming!
    It’s Left-wing totalitarianism, so it’s all good.

    1. If Biden had an AM radio group, it would be called Captain and Sennille. “Do that to me one more time…”

  11. “The additional funding for the IRS will allow the agency to hire 15 percent more enforcement staff.”

    So Lizzy Warren gets what she wanted.

    1. 15% more staff costs 80 billion dollars?

  12. This is tyrannical and unprecedented. The senile brain dead idiot wants to fund a 2 trillion dollar steaming bucket of shit by weaponizing the IRS. What am I missing here? It’s madness.

    1. I seem to remember another president from a completely totally different* administration trying to weaponize the IRS, but this definitely seems more brazen

      *sarc

    2. It is tyrannical but nothing senile about it. It is like a mob boss bringing in more thugs to collect the protection money.

      Don Corleone in the movie always kept his promises and took care of his own people. The democrats do that as well.

  13. The IRS is being weaponized against the American people. Just like the FBI and DOJ have been weaponized. Just like the CIA has been weaponized.

    Nothing good will come of giving the IRS more surveillance power.

    1. So that’s why there’s no tinfoil at the supermarket!

      1. Check in a few days when your EBT card gets recharged. It is almost the first of the month.

        1. Huh, that should have been under XY’s post.

    2. This is how they’re going to control the under the table markets that emerge once they finish destroying whatever remains of the economy.
      “The Rich” and “corporations” aren’t going to be victimized by this. They’re major donors. Poor slobs doing jobs for cash in order to make some extra money are going to be victimized by this.

      1. That will be how they’ll argue that we need to go to a cashless society. The only people who use cash are terrorists and criminals and right-wing insurgents. If you’re not breaking any laws, you have nothing to fear from a system that lets the government track every transaction you make, just to make sure that you’re paying all applicable taxes and not buying anything you’re not supposed to.

  14. Leave it to the Koch funded Reason drivel team to say “oh no, getting tax from millionaires will affect little old ME negatively!”

    What a bunch of garbage. Heaven forbid we put mechanisms in place to make sure everyone pays their fair share. This by and large will be fantastic for everyday Americans.

    But hey, you go on and serve your master Reason writers.

    1. What happens to the slow guy in my shop whose job is already on the line when we can’t avoid to pay him because the company is busy paying its “fair share”?

      1. avoid = afford

        Damn you Reason, edit button!!!

      2. If he’s slow enough, he has a bright future in the Democrat Party.

    2. Or you know you could educate yourself and stop listening the sound bites the media spoon feeds you. I guess the top 10% of income earners in the US footing 71% of the total income tax received isn’t “fair” enough for you?

      1. Seriously reason get in edit button in your comments. It’s f’ing 2021. My response was to raspberrydinners

    3. Millionaires and billionaires are not going to pay a nickel more than they do now, because they have expensive lawyers and accountants to make sure they don’t. What you think is “cheating” is actually milionaires and billionaires paying exactly what they are required to pay and not a penny more, based on how the tax code is written. That’s not cheating. Plus, they’re hard targets and the IRS is no different than any other federal thug agency. They’re not going after hard targets. Catching a billionaire cheating on taxes is hard work.

      The people who are going to get fucked by this are middle and upper middle class taxpayers who can’t afford to hire expensive lawyers and accountants to keep track of their Venmo transactions, freelancers who occasionally fail to report payments, plumbers who did a job under the table for cash, or stay home moms who run unofficial day cares for cash. The IRS will spend billions wringing a few million out of working slobs and then celebrate their success.

      Don’t be stupid.

      1. Right. No Millionaire is running their taxable income through Venmo and PayPal. That the government is seeking records from these companies tells you exactly what the fuck they are doing here. They are catching that kid who built bots to buy PS5s and sell them on Craigslist for 3x markup. They are catching those barbers who have been cutting clients’ hair in their houses when governators shut their salons down.

      2. It may be legal. It’s still cheating.

    4. everyone pays their fair share

      Don’t your knees hurt, shitlunches? Maybe you should get up off of them for a while.

    5. Fuck you.

      All we need is a flat tax, but the shit that passes for politicians in this shithole country use the tax code to purchase votes. Both parties.

      The answer is obvious and simple, but clowns on both sides refuse to even consider it.

    6. “” mechanisms in place to make sure everyone pays their fair share.””

      Half your income is more than your share. Does not matter how much you make.

    7. How do you define “fair share” and how do you know the rich aren’t paying it?

  15. I do understand what you’re saying. You’re saying that spending increases should come with tax increases to pay for them. The problem is that we’re way past that. The budget deficit is so unimaginably huge that no amount of taxation will come close to closing the gap.

    All these taxes will do is make envious people happy while destroying wealth. Wealth being the means for producing jobs, goods, and services that people actually want.

    Also, since you used the term, I’d like you to define “fair share.” Because it seems to me that “fair share” means “That guy’s still rich! He hasn’t paid his fair share! Because if he had then he wouldn’t be rich anymore! Take some more!”

    1. This was in response to raspberrydinners April.29.2021 at 2:59 pm

      1. This response was the tiny bit of libertarian you have left and didn’t sell out due to your self styled victimization.

  16. Who the frick wants the IRS to be more powerful? How do you sell that? Well, you say they’re gonna get “the rich” and “the corporations”. Let’s get out the pitch forks and torches and get after ’em, everyone!

    1. Bootlicking dumbasses, that’s who.

  17. Since the modern post WWII income tax era started while the highest marginal income tax rate has varied from over 90% under Ike to the current lowest marginal income tax rate the income tax revenue has remained constant at between 20 and 21% of GDP.

    How do the shit eating dems explain that.

  18. the income tax revenue has remained constant at between 20 and 21% of GDP.

    Dude, it’s not even that high. It’s only gone above 19% a total of five times since the end of World War II, and one of those was even during the early 80s recession. The average is about 17% in a VERY narrow range.

    What has notably changed in that time frame is a MASSIVE expansion of government programs and, in particular, bureaucracies. On top of that, Medicare and Medicaid Services spending alone is now around $1.5 trillion a year.

    1. Those government programs include things like roads, a massive defense budget, and environmental protection. We could easily cut the bloated defense budget and afford much of the rest of government far more easily.

  19. If you’re not frightened by this article you’re asleep or dead.

  20. 1. Tax evasion is illegal; tax avoidance is a national sport and a high priority activity of large corporations.
    2. The rules of the tax game are defined by Congress.
    3. The rules are too complicated for any Congress Critter to understand.
    4. It is much easier to blame those playing by the rules than to fix the rules.
    5. Because of #3 changing anything in the rules usually results in creating new opportunities to avoid taxes.
    6. Scrapping the whole thing in favor of a simpler system greatly reduces the social engineering power enjoyed by Congress Critters. Therefore, #4 reigns supreme as the first (only) step to be taken, repeat as required.

    1. The rules are made primarily to benefit those who try to avoid playing by any rules–or paying their share of taxes.

  21. Let’s all admit the only people that don’t cheat on their taxes are the people not required to file taxes. But likely most of them are somewhat cheating that. Poor people lie about their marital status to increase EIC and get Head of Household deductions. Middle-class Americans don’t report the side jobs or deduct Netflix as a business expense. Wealthy Americans hide profits and claim research credits for looking both ways to cross the sidewalk.

  22. National Gun registry work-around anyone? By having complete access to your financials, the IRS can search for transactions to gun marketplaces. Not that they don’t already keep a record of FFL transfers….

    Also political donations……

  23. Some times we don’t believe on politics speech most of the time they lie.

    Still looking forward to the result of the Maricopa audit. The best we can hope for
    https://wapexclusive.com ,now is that more people will wake up. I still Don’t believe let watch and see prove ,

  24. By the time Biden and his henchmen are done you’ll all be praying for Trump. Oh ye suckers!

  25. Go for it, IRS ! This is long overdue. It is PAST time for rigorous enforcement of tax laws at the Federal level. The upper income levels already get far more breaks than they need or deserve. AS far as I’m concerned, the IRS can see whatever financial records of mine they like. I have nothing to hide.
    We really need the 2017 tax legislation completely repealed, but this is a good start.

    1. Do you really think you need to go back? or are you joking a little? in any case, I think this is not entirely acceptable! https://irs-offices.com/ forms the country’s budget, but there is also a question where these most taxes go? Wouldn’t it be better to spend them less?

  26. In general, it is not very clear why the https://irs-offices.com/ decided to take on ordinary citizens, and not on some other. there are many bankers, businessmen, etc. who are doing more serious money laundering schemes in the country.

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