Here’s how a new IRS proposal would impact banks, customers
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Bankers: We oppose IRS pressure for more data
Peter Gwaltney is President and CEO of this North Carolina Bankers Association. Dan Schline is President and CEO of the Carolinas Credit Union League
This week, Congress will consider a sweeping proposal that, if passed, will force banks and credit unions to report to the Internal Revenue Service detailed information on the entries and exits of each account greater than $ 600.
The legislative proposal is seen as a source of revenue for the $ 3.5 trillion budget reconciliation plan proposed by the Biden administration. The The Treasury Department says it is designed to reduce tax evasion and improve the collection of taxes already owed to help fund the expense bill.
But the proposal requires banks and credit unions to track transactions of the individuals and businesses they serve, then report that activity to the IRS and have the IRS use it to identify those who avoid paying. pay taxes.
The massive amount of new information that will be submitted to the IRS under this proposal will be unmanageable and of questionable relevance to calculating taxable income. In addition, this proposal creates huge data security and customer privacy issues.
Instead of invading client privacy and occupying resources that might otherwise be spent serving local communities, we suggest members of Congress direct the IRS to close any tax compliance gaps with local governments. data and authority the agency already has. We urge individuals and businesses served by North Carolina banks and credit unions to contact their members of Congress and join us in expressing their opposition to this proposal.
NC must level the playing field on broadband
The author is professor of economics and director of the Center for the Study of Free Enterprise at Western Carolina University.
Regarding “Six Ways Republicans Steal Local Control – And Hide It In The NC Budget” (Editorial, August 18):
Rather than âstealing local control,â the proposed measure to limit the costs that utility pole owners incur in securing equipment will bring enormous economic gains to the state. My research estimates that current broadband expansion plans will create $ 3.5 billion in economic value for the state. However, this gain can only be realized if the existing obstacles to the deployment of broadband are removed. That is what the proposed measure would do.
Today, existing barriers to the deployment of broadband prevent nearly 472,000 North Carolina residents, mostly in rural communities, from accessing the high-speed Internet they need to be successful in the modern world. Utility pole fasteners are a key and largely unavoidable part of providing this service. Unfortunately, our state’s current regulations create an unfair level playing field, giving pole owners (primarily municipal and co-op electric utilities) a significant concentration of market power that is detrimental to the public interest.
Rather than achieving mutually acceptable terms for pole mounting, too many municipal and cooperative pole owners are delaying broadband expansion by imposing long schedules, excessive license fees, unnecessary pre and post construction requirements , etc.
These monopoly tactics too often make the deployment of broadband economically unfeasible and block the expansion of broadband infrastructure, especially in the âlast mileâ areas of the state that need Internet service the most. .
Left unchecked, the unfair playing field will result in delayed or lost economic gains statewide, losing $ 14 million to $ 16 million per month in delay costs that can never be recouped.
Characterizing the proposed measure as an attempt to âsteal local controlâ distracts attention from the importance of bridging the digital divide. By proposing state-wide policies to reduce transaction fees and delays currently imposed on broadband providers when accessing utility poles, House leaders are prioritizing l public interest throughout the state. They empower local communities by freeing their broadband futures from the inefficient and unfair market power of power co-operatives and municipal utilities.
Edward J. Lopez