Financial information

McRae calls US plan for Biden’s families “biggest data mining exercise in US history”


JACKSON, Mississippi (WLBT) – Mississippi State Treasurer David McRae has joined 22 state financial executives to oppose a plan by President Joe Biden that they say would allow the IRS to ” have access to the private banking business of more than 100 million Americans.

The proposal in question is the American Families Plan.

According to the White House, the bill’s provisions provide funding for a free preschool for three- and four-year-olds, two years of free community college, and additional investments to provide a four-year education for earning Americans. low and medium. .

The plan would also provide direct support to families to supplement childcare costs, create a national paid family and medical leave program, and expand tax cuts for low- and middle-income workers that have been put in place. as part of the American rescue plan.

Those provisions aside, members of the State Financial Officers Foundation say the plan’s tax compliance rules represent what would be “the largest data mining exercise in US history.”

“We don’t believe the federal government should give the IRS the unprecedented and unconstitutional power to review the private financial accounts of law-abiding citizens,” the organization said in an open letter to President Joe Biden and Secretary of the Treasury Janet Yellen. “It would be one of the biggest data privacy breaches in our country’s history and is a direct attack on the financial disclosure of all Americans.”

To ensure compliance, the plan would include allocating an additional $ 80 billion in funding to the IRS over the next decade to update technology and hire additional agents.

Efforts would also be designed to close what the Biden administration calls the “tax gap,” or the amount of federal taxes voluntarily paid each year compared to the amount actually owed.

The SFOF says that to fill this gap, the plan would require financial institutions like banks and credit unions to hand over information on the bank accounts of people with inflows or outflows greater than $ 600.

The plan would require banks and other institutions to “report gross inflows and outflows with a breakdown of physical cash, transactions with a foreign account and transfers to and from accounts of financial institutions,” according to an explanation of the plan released by United States. Treasury.

The guidelines would apply to both business and personal accounts.

The SFOF argues that having to provide this information “would have a devastating impact on the costs of small community banks and credit units” and put more US financial information at risk of cyberattacks.

“The IRS is a constant target of cybercriminals and has suffered significant breaches in recent years,” the letter said. “This reporting requirement will routinely put a large amount of sensitive financial data in transit to the IRS, (which) will be exposed to constant risk of a cyber attack.”

The bill was not passed and is currently being debated by Congress.

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