Credit Unions Already Losing Customers After Biden Plan to Allow IRS to Spy on Bank Accounts
Many credit unions are already reporting a loss of members and customers in the wake of Joe Biden’s plan to allow the IRS to spy on every bank account with more than $600 in it.
One community banking representative recently said in shock that “The IRS is now going to force your bank to turn over information that can further … track your personal and professional banking accounts,” and credit unions are already hurting because of this new policy.
As Just The News reported:
According to the National Association of Federally-Insured Credit Unions, customers at some credit unions have already decided to close their accounts over “government intrusion” concerns fueled by the prospect of such new rules taking effect.
The Democrats’ proposal would require financial institutions to report account activity above $600 to the IRS.
House Speaker Nancy Pelosi said on Tuesday that new IRS reporting rules for financial institutions will stay in the Democrats’ filibuster-proof budget reconciliation bill but the $600 threshold is part of ongoing “negotiation.”
Dan Berger, president and CEO of NAFCU, said the new requirements stand to have “extremely serious and costly implications for consumers and financial institutions,” especially credit unions.
“If this provision goes into effect, credit unions would not only be left facing technical challenges and added costs to meet the reporting requirements, they would also have to deal with an increase in questions and concerns about what they are reporting from their members,” Berger said. “Not to mention the major financial data privacy concerns they’d need to address to ensure their members feel safeguarded and still willing to place their trust in credit unions.”
“Some credit unions are already seeing consumers withdraw their accounts because they are concerned about the possibility of this government intrusion,” Berger reported. “Any increase in compliance burdens ultimately leads to higher operational costs that could impact service and credit unions’ lending capacity. Every dollar spent on cumbersome compliance costs is one less dollar to lend to members.”
The administration has pushed this policy using as cover the bald-faced lie that they only need this power to force “billionaires” to pay their fair share of taxes.
But, think about it for a minute…. how many “billionaires” do you imagine are doing tiny, little $600 banking transactions?
No, folks, this is an attempt to corral lower and middle-class people, not billionaires.
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