State Treasurer Dennis Milligan Discusses Implications of Biden Tax Agenda
“Tax Compliance Agenda” Could Hurt Middle-Income Families, Small Businesses
Little Rock, Ark. – (Sept. 16, 2021) The Biden Administration and the US Treasury’s proposed agenda to change reporting requirements of banks and credit unions would have unintended consequences on middle-income Americans and small businesses, Treasurer of State Dennis Milligan said today.
The proposed change would require all U.S. banks and credit unions to report transactions to the Internal Revenue Service of any bank account with a balance of $600 or more.
The Biden Administration claims that the change in reporting requirements would generate about $460 billion in tax revenue over the next 10 years. The Tax Compliance Agenda is part of the Biden Administration’s $3.5 trillion reconciliation bill.
“The Democrats are trying their hardest to make up for the massive amount of debt they are putting our country in,” Milligan said. “In doing so, they are burdening middle-class Americans and small businesses in the name of trying to catch tax evaders. People who evade taxes aren’t your hardworking middle-class Arkansans. Instead, this is just another type of government overreach that is typical of a Democrat-controlled Congress.”
Milligan also has major concerns about the security such an overhaul would have on individuals’ personal data.
“As Treasurer, I serve as the state’s banker, so I’m familiar with cyber threats and the types of data breaches that are out there, and I have very strong concerns about this agenda. The IRS itself has a continued track record of data breaches, and I’m very concerned with the amount of security – or lack thereof – that the government has shown in the past,” Milligan said.
The agenda would also affect the relationship that banks have with potential customers – many of whom, especially in Arkansas, are already leery of banking institutions.
At 9.7%, Arkansas already falls above the 7% national average of households who are unbanked, and this additional reporting requirement could cause an unnecessary breach of trust between Arkansans and banks, and force potential customers out of the industry altogether, Milligan said.
“Forcing banks to implement such rigorous reporting requirements would not only bog down their institutions with unnecessary red tape, but would violate Americans’ constitutional rights to be free from unreasonable search or seizure of their papers and effects,” Milligan said, adding that it could also overwhelm many small Arkansas banks.
“Moreover, it would have a detrimental effect here in Arkansas because of the number of small banks we have here. Requiring them to implement such measures would overwhelm them with an excessive workload.”
Treasurer Milligan’s letter to President Biden and Treasury Secretary Yellen:
Treasurer Milligan’s letter to Arkansas’ Congressional delegation:
Dennis Milligan was elected Treasurer of State in 2014 and re-elected in 2018. The State Treasury is responsible for overseeing the state’s $5 billion portfolio. Since taking office in 2015, Milligan has receipted the state more than $420 million in investment returns and has grown the investment portfolio’s receipts to record highs. www.artreasury.gov.