Joint Statement by Texas Association of Business and Texas Bankers Association
Austin —The Texas Association of Business (TAB) joins the Texas Bankers Association (TBA) in opposition to the $3.5 trillion reconciliation spending plan, which increases the corporate tax rate (21 percent to 26.5 percent) and allows the IRS to collect data on all financial transactions of $600 or more.
“For an outrageous price tag of $3.5 trillion, small businesses will incur corporate tax increases and become a target for IRS inquisitors. At a time when job growth is slower than expected, the last thing our businesses need is a tax increase,” said TAB CEO Glenn Hamer.
The U.S. House Ways & Means Committee is following the budget Reconciliation process, including S. Con Res. 14, which claims that reporting on large financial account balances will “ensure those evading the tax system pay what they owe.” However, the low dollar amount runs counter to the Biden Administration’s claim to just go after the largest tax offenders by looping in individuals and small businesses that often do not have the means to challenge IRS interpretations. This means that most mortgage payments, credit card transactions, and small business vendor payments of $600 or more would be captured and subject to IRS scrutiny. Moreover, it would make sensitive data on millions of Americans and small businesses an easy target vulnerable to hacking.
“Texas banks value the privacy of customers and we strongly oppose this over-reach that will give the IRS unprecedented surveillance of the financial activity of citizens and small businesses,” said TBA President & CEO Chris Furlow. “If approved, individuals and small businesses will be caught in this IRS dragnet which, without probable cause, raises major Fourth Amendment concerns.”
TAB is the voice for Texas businesses, representing more than 1,500 members and 200 local chambers. United to protect the business-friendly climate, TAB works on the frontlines, in a bi-partisan manner, to deliver real solutions that promote economic development in Texas. Follow TAB on Facebook, Twitter, and LinkedIn.