(PresidentialHill.com)- Third-party payment processors are required to report all business transactions that happen on their platforms if individual users have at least $600 in transactions for the year.
This means that platforms such as Cash App, PayPal and Venmo are required to report these transactions to the federal government if the exceed that relatively low amount.
That’s one of the lesser-known parts of the American Rescue Plan, President Joe Biden’s signature coronavirus stimulus package that was passed in the spring of 2021. Before the plan was passed, those platforms only had to report transactions if an individual had more than 200 separate transactions that totaled more than $20,000 of gross income.
What the rule is doing is forcing thousands of individuals and small businesses to file 1099-Ks with the Internal Revenue Service as part of their annual taxes.
But, one Republican senator is doing everything he can to stop this from happening.
Bill Hagerty, a senator from Tennessee, has introduced what he’s calling the SNOOP Act — or the Stop the Nosy Obsession with Online Payments Act. It would eliminate this provision from the country’s tax code altogether.
In introducing the bill, Hagerty released a press release that read:
“The Biden Administration is relentless in their attempt to invade the privacy of Americans’ lives and finances.
“It is regrettable that this Administration insists on advancing their perilous and oppressive political agenda to the detriment of taxpayers’ privacy, heedless of their failed track record of protecting Americans’ confidential data. It is past time we stand up for our small business owners and say ‘no more snooping’ to this administration’s egregious and unwarranted overreach.”
Other GOP members of the Senate Banking Committee are joining with Hagerty to push the SNOOP Act forward. They believe this is just another “intrusive” policy the Biden administration is pushing on the American public.
The group of Republicans believe this act hinders the progress of small businesses throughout the country, and also makes reporting taxes and income extremely hard for taxpayers.
Florida Republican Senator Rich Scott added that he believes this tax doe increases the cost of doing business for independent contractors and small businesses. It also increases taxes on a wide group of people that the president said he’d work hard to protect.
As Scott commented:
“Along with trillions in unnecessary and unrelated spending in their so-called ‘COVID’ spending package, Biden and the Democrats snuck in a tax increase on gig workers, like hardworking Americans that drive for Uber, Lyft or DoorDash.
“Meanwhile, Democrats refuse to acknowledge the inflation and supply chain crisis. Let me be clear: Reckless spending is causing inflation, and further increasing costs and regulations on already-struggling Americans only makes things worse. I want to thank Senator Hagerty for continuing our fight in protecting working-class families, and I urge my colleagues for their support of the SNOOP Act.”
This is just another example of how the Biden administration is indeed pushing a far-left political agenda that most Americans certainly wouldn’t support.