While Democrats don’t like to enforce law and order in their major cities, they are seriously concerned with enforcing financial regulations of small businesses. Starting January 1, 2022, all small businesses that use a third-party payment processor, such as Venmo, Cash App, or PayPal, must report earnings exceeding $600 in one year.
Democrats snuck this new tax law into the March 2021 American Rescue Plan. It is not surprising that they frame increased tracking of American financial records as part of a “rescue plan.”
This new tax code was created to ensure that small business owners were not lying on their 1099-K tax reports. With this new rule, third-party payment processors must report your financial earnings to the IRS if they exceed $600.
Business owners have always been expected to pay taxes on their earnings, but now the IRS will know for certain how much small businesses earned on cash apps and whether they were completely truthful on their 1099-K.
Mainstream media outlets reassure their listeners that this new tax code will only apply to goods and services transactions. So, if you are sent a gift, receive rent payment from your roommate, or are reimbursed for paying for dinner, you won’t have to pay taxes on those earnings.
Despite these assurances, it is hard to believe that authoritarian Democrats will not abuse the power to review the financial records of anyone using Venmo, Cash App, or any other payment app.
Let’s say that pottery is your favorite hobby, and you often sell your vases and mugs to friends and family. If your earnings amount to just over $600, would the IRS consider you a business owner and prosecute you for tax fraud if you didn’t pay taxes on those earnings? Under the Biden administration, the answer is likely yes.
Before this new tax code was implemented, Americans only had to report to the IRS if they earned over $20,000 on a third-party payment processor. However, funding a socialist utopia isn’t cheap.
That’s why Biden wants to ensure every American who makes a small fortune for themselves with a side hustle is paying up to fund his Marxist legislative agenda.
With this new tax code, third-party payment processors will now require more information from their users. This may include an Employer Identification Number, Individual Tax Identification Number, or Social Security Number.
As Democrats continue to push for increased trillion-dollar spending bills, they are ramping up taxation enforcement to prop up their regime. If leftists had their way, every single monetary transaction would be reported to the IRS.
If the pandemic has taught us anything, more government control over our lives is always a bad thing. Now that private payment apps are under the surveillance of the IRS, the federal government will be able to precisely track our lives and how we spend or earn our money.
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