EDITORIAL: A look back at Biden’s banking turmoil | Editorials


It doesn’t matter what a politician writes on her outfit at an elite cultural ball – like US Rep. Alexandria Ocasio-Cortez’s “Tax the Rich” performative dress at last month’s Met Gala – ordinary people in Colorado and the country are waking up to how they are in the big government’s monetary crosshairs.

We are in a painful period of inflation made worse by a shortage of dollar circulation. In the midst of this, it is the most dedicated members of our working class – those with side jobs in addition to 40-hour-a-week careers – who are the taxpayers the increasingly authoritarian federal government wants to squeeze the most. .

It’s the tip waiters, Venmo-funded weekend warrior photographers, and after-hours tinkerers that will pay for the bloated bureaucracy that President Joe Biden himself says will cost you nothing.

Case in point: Until Tuesday, Biden’s multibillion-dollar “Build Better” spending proposal included a proposal that would have forced financial institutions to go after account holders. Banks and other popular new personal money platforms – like PayPal, Venmo, and Cash App – should have reported gross inflows and outflows to the IRS for accounts with $ 600 or more per year in transactions.

Six hundred dollars. Not 60,000. Not 6,000. Six hundred.

Late Tuesday, ABC News reported that the White House had granted us all reprieve. The administration had backed down from its proposal in the face of raging opposition and is now proposing to limit its money hunt to bank accounts that generate more than $ 10,000 a year in non-W-2 revenue.

The fact that the administration is prepared to take this route is worrying. And the outcry over the initial proposal should be a wake-up call to the president about his general contempt for taxpayers over various policy initiatives.

Even Americans who are unfamiliar with the Fourth Amendment to the Constitution – the right of the people “to be safe in their persons, homes, papers and belongings from unreasonable searches and seizures” – can now understand suddenly why this is so important. They perceive the potential espionage that Biden’s Internal Revenue Service would undertake to be what it is: a digitally-voyeuristic financial fishnet. And the average guy or girl is just a minnow for the post-modern tax protest under Biden and Treasury Secretary Janet Yellen.

While Biden’s clumsy justification for his haughty tax idea is trivial at best and pernicious at worst, at least Yellen has been blunt. After a career of applying theoretical economics at the academy and at the Federal Reserve, Yellen, the current director of the US Treasury, wants what she believes owes him. Specifically, she envisions a tax gap – a gap she expects to grow to $ 7 trillion over the next decade – as your hungry uncle ogles the tastiest side dish happening around the Thanksgiving table. .

And Yellen did not appear to be shaken by the disenchantment and disengagement expressed by otherwise submissive taxpayers defending themselves.

Team Build Back Better’s response? May your privacy, your little crush and your entrepreneurial spirit be cursed while your working class collection of our dollars runs out.

Critics of the proposal were not limited to entities like the Taxpayer Protection Alliance and the American Bankers Association. Trendy collections of people, like Facebook groups, ensured that the policy proposal did the trick. This immediately sparked a revealing economic philosophical conversation.

One example in Colorado is the Denver Photo Betties Facebook group, a social media community of 1,600 female photographers in the Denver area, many of whom trade money like many of us do now: via the Venmo transfer . In a September 30 thread, there were over 70 comments among the Betties discussing all the ways the proposed policy would affect them – how it would force them to raise their rates and pass the cost on to their consumers.

“They’re trying to stop billionaires from tax evasion by monitoring $ 600 transactions,” a comment from Bettie read.

By fending off Biden, these Betties and other con artists have a champion – U.S. Rep. Lauren Boebert of Colorado’s 3rd Congressional District. Boebert, who, at 34, is right in the middle of the Betties demographics, is a co-sponsor of the Protecting Financial Privacy Act to ban the IRS from accessing and monitoring Americans’ bank transactions over $ 600.

On Monday, Boebert sent an email saying that the federal government “has no business monitoring small cash deposits and the way Americans pay their bills. The Constitution is the White House’s new doormat.” she added, “but if Biden bothered to read it, he would know the Fourth Amendment doesn’t allow unreasonable research.

It appears that the pushback has caused the administration to back down a bit, at least for now. We’ll assume that the last iteration is not the last. We will stay tuned.

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