Neighborhood Ministries

President Biden pushed through the American Rescue Plan Act of 2021 right after taking office. It will take effect in Aug., 2026 unless it is repealed. It required that the threshold of reporting for third party settlement organizations like PayPal was lowered from 200 transactions with an aggregate total of over $20,000 to transactions totaling over $600 with no minimum number of transactions. He claimed it would close the tax gap but estimates are that the increase in collections will only be a drop in the bucket. Personal payments like buying a car and reimbursements for expenses could easily be wrongfully included in taxable income. President Biden also ordered the hiring of 87,000 IRS agents but no provision was made to pay for them. It is estimated that this was designed to pay for them. It is supposed to tax the rich but the rich can afford expensive lawyers so it will primarily hit small businesses and individuals with side hustles. President Biden was also pushing a digital currency and many feel this was a step toward instituting one.