While the Biden administration has continued to insist that the IRS would not be targeting those making under $400,000, a new IRS rule has changed the reporting threshold for payment app transactions from $20,000 earned over 200 transactions to just $600.
The IRS has warned Americans that they must report payments on Venmo, PayPal, & Zelle over $600
The $600 threshold includes part-time work, side gigs, and selling goods
Wasn't the plan to go after Billionaires?
— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) November 30, 2022
The new rule would require anyone who earns more than $600 on payment apps in 2023 to file a 1099-K form next year.
President Joe Biden and other Democrats have claimed that hundreds of billionaires are paying lower federal taxes than average Americans — and have argued that their tax increases, controversial policies, and increased funding for the IRS would fix that supposed problem.
According to reporting from BizPac Review, “Biden has claimed there are hundreds of billionaires paying lower federal tax rates than schoolteachers, police officers, firefighters, and nurses, and called on Congress to ‘pass my proposal for the billionaire minimum tax’ in his Feb. 7 State of the Union address.”
“The proposal would be dead on arrival, but Biden continued the political posturing in his proposed budget, asking Congress to levy a 25% minimum tax on billionaires,” the outlet added.
However, critics have pointed out that this new rule would have little-to-no consequences for billionaires and would instead harm the average Americans that Biden and the Democrats claim to be helping.
Widespread confusion and concern over the new rule led the IRS to postpone its implementation in December 2022, while many Americans continued to demand that the rule be eliminated entirely.
Meanwhile, critics are blaming Biden for the increased scrutiny over their small transactions, blasting the president for targeting low-income Americans and small businesses.
“Promise Kept! Biden promised to go after billionaires and this is proof he is! Most billionaires are hiding their income by using Venmo to collect income at $600 a pop. This new rule will force them to pay their fair share! Thank you, Joe!” popular Twitter user Amuse said sarcastically.
Promise Kept! Biden promised to go after billionaires and this is proof he is! Most billionaires are hiding their income by using Venmo to collect income at $600 a pop. This new rule will force them to pay their fair share! Thank you Joe! https://t.co/Eg5EOekEZj
— @amuse (@amuse) April 13, 2023
Democrats and their allies in the mainstream media have tried to defend the new IRS rule, claiming that it will only target transactions involving goods and services. CBS News also provided advice for Americans who use these payment apps for personal transactions.
“According to the IRS, money exchanged between friends on those apps should not be taxed. As added protection, experts warn users to classify their transactions to family and friends as personal, not goods or services,” the left-wing network reported.