MASON CITY, Iowa-The North Iowa Community Credit Union warned members against a tax provision in the American Families Plan on their Facebook page Tuesday.
The specific tax policy, which has since been left out from the reconciliation bill, would require financial institutions to report cash flows of at least $600 dollars to the Internal Revenue Service.
The Biden Administration said the policy would reduce tax evasion and generate at least $700 billion in 10 years.
However, banks across the country have expressed concerns over privacy violations.
The Director of Government Affairs for the Iowa Credit Union League Gracie Brandsgard said the bank is concerned private member data will be compromised.
"Our concern is having to report intimate details of people's spending habits to the government and allowing them to capture all of that. We have concerns about how that will remain private and secure," Brandsgard said.
The tax provision could still be added to future legislation, as it is still a top priority for the Biden Administration.