Stock Groups

U.S. banking lobby groups oppose proposed tax reporting law By Reuters


© Reuters. FILE PHOTO : Wall Street is crowded with people outside of the New York Stock Exchange (NYSE), New York City, U.S.A. March 19, 2021. REUTERS/Brendan McDermid/File Photo

(Reuters) – The largest U.S. banking lobby groups banded together on Friday to make another push to kill a proposed bank account reporting law being drawn up as part of the congressional reconciliation package.

Lobby groups sent a letter to U.S. House of Representatives Speaker Nancy Pelosi as well House Minority Leader Kevin McCarthy stating that their proposal could create “reputational difficulties” for large financial firms, raise the cost of tax preparations and pose serious concerns about “financial confidentiality.”

The groups urged members to reject any attempts to promote this new, ill-advised reporting system.

The stated purpose of the vast data collection was to expose tax dodging by wealthy individuals, but this proposal does not target that goal or any population.

A $3.5 trillion House bill would require domestic accounts to be reported. This is an issue that is important for the banks, who are opposed to any tax reporting reforms being proposed by Democrats.

Financial services firms will have to report inflows and outflows to every account that exceeds $600 per year. This includes cash breakdowns.

Lobbyists feared that the proposal would create privacy problems and discourage taxpayers, as well as hamper efforts to increase access for vulnerable people and households who are not banked.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. Instead, they are determined by marketmakers. As such, the prices might not reflect market conditions and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.