Biden wants to snoop in nearly every American's bank account


To help pay for Democratic spending priorities and cut down on unpaid taxes, the Biden administration is proposing to empower the Internal Revenue Service to collect information from banks about accounts "with total annual deposits or withdrawals worth more than $600," according to The New York Times. The proposal has already begun to inspire criticism among banks and their customers — and for good reason.
Banks already report information to the IRS about cash deposits of $10,000 and higher — and that sometimes results in hassles (audits, investigations, and even civil asset forfeiture) for individuals and small business owners. But what the Biden administration is proposing now is far more onerous. It would drop the threshold for scrutiny of deposits all the way down to $600 and include all withdrawals above that level as well.
It's hard to imagine the IRS effectively processing the tsunami of data this rule would require banks to send their way. But it's even harder to believe banking customers will be content to go along. As the Times reports, a backlash has already begun, and it's bound to get worse. This is a country with very low trust in government — so low that persuading people to take advantage of life-saving vaccines promoted by both the Centers for Disease Control and Prevention and the Food and Drug Administration has been a challenge. Now the IRS will be closely monitoring every bank account in the country with a modest level of annual activity to determine if an audit or investigation is in order?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
With this plan, the administration is running the significant risk of generating a whole new groundswell of opposition to government. Biden should back off — all the way back, at least, to the $10,000 level. An unnamed official at the Department of Treasury quoted in the Times indicates that this is being considered, along with the creation of an exemption for people paid through payroll processing companies, so Americans who withdraw cash from accounts containing income from paycheck deposits can avoid scrutiny.
That seems perfectly reasonable, even if it results in the continued loss of a certain amount of revenue every year. Such losses may well be an unavoidable cost of living in a free society.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Damon Linker is a senior correspondent at TheWeek.com. He is also a former contributing editor at The New Republic and the author of The Theocons and The Religious Test.
-
June 25 editorial cartoons
Cartoons Wednesday's cartoons include war on a loop, the New York City mayoral race, and one almighty F-bomb
-
How generative AI is changing the way we write and speak
In The Spotlight ChatGPT and other large language model tools are quietly influencing which words we use
-
How long can Nato keep Donald Trump happy?
Today's Big Question Military alliance pulls out all the stops to woo US president on his peacemaker victory lap
-
How Zohran Mamdani's NYC mayoral run will change the Democratic Party
Talking Points The candidate poses a challenge to the party's 'dinosaur wing'
-
Is Trump's military parade 'just a parade'?
Talking Point Critics see an 'echo of authoritarianism'
-
Is Trump's LA troop deployment about order or authoritarianism?
Talking Points President: 'We're going to have troops everywhere.'
-
Is Trump trying to take over Congress?
Talking Points Separation of powers at stake in Library of Congress fight
-
The anger fueling the Bernie Sanders and Alexandria Ocasio-Cortez barnstorming tour
Talking Points The duo is drawing big anti-Trump crowds in red states
-
Why the GOP is nervous about Ken Paxton's Senate run
Today's Big Question A MAGA-establishment battle with John Cornyn will be costly
-
Bombs or talks: What's next in the US-Iran showdown?
Talking Points US gives Tehran a two-month deadline to deal
-
The JFK files: the truth at last?
In The Spotlight More than 64,000 previously classified documents relating the 1963 assassination of John F. Kennedy have been released by the Trump administration