Sen Joe Manchin, D-W.V., a key vote for any budget reconciliation bill, said Tuesday he is opposed to a controversial plan to require credit unions and banks to report to the Internal Revenue Service the inflows and outflows from member and customer accounts.
“This cannot happen,” Manchin said during an appearance at the Economic Club of Washington. “This is screwed up.”
He said he told President Biden that the plan is not acceptable, and that Biden told staff attending, “I think Joe’s right on this one.” Manchin predicted that the provision will not be in the budget reconciliation bill, although others are predicting that it will.
Given the close partisan margin in the Senate, Manchin’s vote is essential for the budget reconciliation bill and any infrastructure legislation that may come to the Senate floor. This has put Manchin in a unique position of power as the legislation is developed.
As originally proposed in the Biden Administration’s FY 22 budget, banks and credit unions would be required to report the inflows and outflows from customer accounts when the gross flow threshold exceeds $600. Credit union and banking trade groups mobilized customers and members to flood Congress with messages saying that plan amounted to an invasion of their privacy.
Democrats last week attempted to quell that furor by increasing the gross flow reporting threshold to $10,000. However, the trade groups have continued to send messages to members of Congress and Biden expressing their outrage.
The Biden Administration has accused the trade groups of misleading the public in order to encourage opposition to the proposal.