Inside Housing Bailout Bill: Track and Monitor All Credit Card Data

Inside Housing Bailout Bill: Track and Monitor All Credit Card Data

www.freedomworks.org

Hidden deep in Senator Christopher Dodd's 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America's small businesses. The provision, which was added by the bill's managers without debate this week, would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.
Call Congress and Tell Them to Oppose The eBay Reporting Provision in the Housing Bill: 1-866-928-3035
FreedomWorks Chairman Dick Armey commented: "This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America's small businesses are breathtaking."

"Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.

"At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America's payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications."

(visit the link for the full news article)

Not only do they want to give everyone's tax dollars to bail out people who cannot use their money wisely, they are coming for your credit card data.

Just when you thought that they couldn't think of anything else to monitor, they surprise you. There is no justification for wanting to put all transactions in to a central government database. I wouldn't put it past them to sell out your spending habits as well as places you frequent to a big corporation who wants it. The article brings up many great points and questions, definitely recommended reading.

Also the fact they are hiding this in the middle of this bill only shows that they know it's highly invasive and shady. Thumbs down all around.

www.freedomworks.org
(visit the link for the full news article)

[edit on 25-7-2008 by ragnarak]

reply to post by ragnarak


Wow, when is this going to end. The way the economy is going, the way the banks are going, life as we know it is definitely about to change if things continue this way. So much for land of the free...

Seriously, I thought people would care more about this, especially in a forum like this.

I guess it's true no one cares about their freedoms anymore. Just wow.

There is no freedom left to fight for when we can't eat or keep a roof over our heads, but this bill is disturbing to the max. It went from a housing bailout to a Feddie mac/Fannie Mac bailout and now we have poop like this in it. It is currently being revised by the hour with more poopies added every last minute till they vote on it as soon as tomorrow - yes on Saturday.

You want the real meat on this Bill watch this, then have a good time trying to sleep tonight.

www.youtube.com...

P.S. Sorry I haven't mastered the insert YouTube thingy yet.

This does indeed sound disturbing...

I hope this is made more public before the bill is passed

The Bill is being fast tracked, they are going to attempt a vote today - yes on a Saturday. There is a small group of people trying to flood the offices of their representatives to stop it or at least attempt a filabuster, but there is big money behind this (or I should say big missing money) and the re-writes were happening hourly yesterday. The entire thing is over 600 pages now, and things like this posted by the OP have shown up. Not to mention this started as a housing bailout to save some of the foreclosures, but now includes a complete bailout of Freddie/Fannnie too.

Total potential cost to you and me? Try to the tune of 1.3 Trillion. This was exposed by the guy who did the video I linked to above weeks ago. Yesterday, someone admitted it on national news.

Be afraid - be very afraid.

I'm pretty sure that this part of the bill is to track down folks being paid by credit card (think person who makes a living selling stuff on ebay). With the amount of potential exposure to the taxpayer that is in the rest of this bill, the .gov needs every potential source of revenue they can get.

reply to post by ragnarak


People do care, of course... don't get bummed out; no worthwhile struggle is ever easy. Here's a thread about this from last month, when this provision was introduced in the reconciliation process:

Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government

There's some analysis and links to the text in the Congressional Record. I'm checking the EAS2 now (HR 3221); let's see if anything's change in the lastest version..

When they made it illegal for banks to process online gambling transactions, third party processors took over. Guess that will end too.

reply to post by ragnarak


Wow this pisses me off.. What the hell do they even need with this information? How is it possibly in any way going to help the government?? Makes me sick.. I wish I knew what congress person put that ear mark in the bill......

They could use it to label anyone a terrorist , that spends money on activities they do not approve of. If you buy anything in another country, they can ask questions. This is really spooky.

Of course their mouths are watering at all that new taxable income.
(ebay etc)

So now If I send my daughter some money on paypal, she better pay the taxes on it.... sheeshhh

For those who are interesting in the details of this, it's in H.R.3221 ("Housing and Economic Recovery Act of 2008 (Engrossed Amendment as Agreed to by Senate)"), section 3901.

I noticed a backup withholding requirement, that I'm not sure was there before. Basically, if there's a requirement to report the gross payment amount, and it's over $600, and the payee doesn't furnish a valid TIN, "then the payor shall deduct and withhold from such payment a tax equal to the product of the fourth lowest rate of tax applicable under section 1 (c)" (via 26USC3406).

Looks like it's going to be some new form of 1099 income, as such income would now be qualified as ' Other reportable payments' in the tax code.

Originally posted by Rockpuck
I wish I knew what congress person put that ear mark in the bill......

You can look to Messers Dodd, Shelby, and Reid:

AMENDMENT NO. 4983

The Senator from Nevada [Mr. Reid], for Mr. Dodd, for himself and Mr. Shelby, proposes an amendment numbered 4983 to the House amendment striking section 1 through title V and inserting certain language to H.R. 3221.

Mr. DODD. Mr. President, let the games begin. We are open for business. If Members have amendments they would like to raise, Senator Shelby and I are here, and we would like to move along...

Source

reply to post by Rockpuck


I agree with you completely. This was like the gov demanding youtube to turn over all user accounts.

This is just something I don't think Government should have any access to. This is about peoples' personal lives, and PERSONAL purchases. They tried passing this same exact thing not long ago... But I thought they weren't going to get it through until 2010, from the sound of it.

Why are they in such a HURRY to get this through now?