Bill Text: TX SCR5 | 2021 | 87th Legislature 3rd Special Session | Introduced
Bill Title: Urging Congress to oppose the burdensome reporting requirements included in the Biden administration's revenue proposals for fiscal year 2022.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-10-08 - Filed [SCR5 Detail]
Download: Texas-2021-SCR5-Introduced.html
87S30703 TBO-D | ||
By: Springer | S.C.R. No. 5 |
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WHEREAS, The Biden administration's revenue proposal for | ||
fiscal year 2022 includes a number of provisions that would place | ||
undue burdens on banks, small businesses, and law-abiding American | ||
citizens; and | ||
WHEREAS, The proposal seeks to improve tax enforcement | ||
measures by requiring peer-to-peer payment transaction apps as well | ||
as banks and other financial institutions to annually report | ||
aggregated data on all account inflows and outflows of $600 or more | ||
to the Internal Revenue Service; the reports would also disclose | ||
whether transactions involved physical cash, foreign accounts, or | ||
transfers between accounts with the same owner; critics of the | ||
proposal have highlighted key issues regarding privacy, compliance | ||
costs, and negative impacts on low-income communities; and | ||
WHEREAS, The proposal's low $600 threshold for reporting | ||
would ensnare most active bank accounts, including those owned by | ||
individuals and small businesses; as a result, the financial data | ||
of the majority of bank accounts would be sent to the IRS, which | ||
experiences more than one billion cyberattacks each year; in | ||
addition, a June 2021 ProPublica article revealed a massive leak of | ||
tax return data from the IRS, demonstrating that the agency is | ||
unable or unwilling to protect taxpayer information; considering | ||
its many vulnerabilities in cybersecurity, the IRS should not be | ||
trusted with more private information; and | ||
WHEREAS, By holding financial institutions responsible for | ||
data collection and reporting, the proposal would force banks to | ||
increase spending on additional staffing, technology, and other | ||
resources; these costs could then be passed on to the depositors, | ||
thereby burdening tax-compliant citizens and businesses; and | ||
WHEREAS, People from both political parties have expressed | ||
concern about the Biden administration's revenue proposal; a group | ||
of 141 House Republicans explained their position in a letter to | ||
their Democratic colleagues, and House Democrats omitted the bank | ||
reporting requirements in their September 2021 list of tax policy | ||
changes due to the potential harm it may cause to low-income | ||
communities; moreover, an Independent Community Bankers of America | ||
poll conducted by Morning Consult found bipartisan opposition to | ||
the IRS reporting requirements included in the proposal, with 67 | ||
percent of voters opposed and more than half of voters strongly | ||
opposed; and | ||
WHEREAS, The Biden administration's revenue proposal fails | ||
to consider cybersecurity risks and unjust burdens on lawful | ||
individuals, and the United States Congress should oppose this | ||
unprecedented intrusion into the privacy of Americans; now, | ||
therefore, be it | ||
RESOLVED, That the 87th Legislature of the State of Texas, | ||
3rd Called Session, hereby respectfully urge the Congress of the | ||
United States to oppose the burdensome reporting requirements | ||
included in the Biden administration's revenue proposals for fiscal | ||
year 2022; and, be it further | ||
RESOLVED, That the Texas secretary of state forward official | ||
copies of this resolution to the president of the United States, to | ||
the president of the Senate and the speaker of the House of | ||
Representatives of the United States Congress, and to all the | ||
members of the Texas delegation to Congress with the request that | ||
this resolution be entered in the Congressional Record as a | ||
memorial to the Congress of the United States of America. |