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Democrats Float $10,000 Threshold for Bank-Account Reporting

  • Wages, federal benefits wouldn’t count toward threshold
  • Republicans say plan gives the IRS ‘new snooping powers’
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Democrats Look to Scale Back Biden’s Economic Agenda
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Democrats are vowing to crack down on tax cheats by giving banks new requirements to disclose to the IRS accounts that have total annual inflows or withdrawals of at least $10,000.

The plan would help fund President Joe Biden’s multi-trillion-dollar economic agenda, potentially raising $700 billion and reducing the need for tax increases to offset the cost of new social spending. Democrats say this plan to catch tax evasion by the wealthy and boost federal revenues is critical to address inequalities in a tax system that forces middle-income people to pay all they owe, while high-earners can shield their income from the IRS.