In 2022 the U.S. Internal Revenue Service announced that online payment platforms must report all transactions made by individuals that are over $600. The rule would result in online sellers, resellers and gig workers having to report more earnings to the IRS. Under the previous law online platforms had to send reports to the IRS if a vendor earned more than $20,000 and had over 200 transactions. Proponents argue that the rule will force tax cheats to report income. Opponents argue that the rule unfairly targets small businesses and people who sell items on Ebay and AirBnb.
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NO... Online payment platforms should not be forced to report all transactions over $600 to the IRS without significant reform, contextual nuance, and protective exemptions. The policy undermines proportionality, burdens the wrong populations, violates personal privacy, and introduces systemic inefficiency without meaningfully addressing the core tax gap. Tax justice requires integrity, but integrity must be paired with prudence, trust, and restraint. A just government cannot trade mass surveillance for marginal compliance.
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