Bill Overview
Title: Saving Privacy Act
Description: This bill adjusts certain amounts for inflation, including reporting thresholds applicable to financial transactions, the threshold for the criminal offense of cash smuggling, and tax return thresholds for cash receipts.
Sponsors: Sen. Lee, Mike [R-UT]
Target Audience
Population: Individuals engaged in substantial cash transactions
Estimated Size: 20000000
- The bill aims to adjust financial thresholds related to reporting financial transactions, tax returns, and criminal offenses like cash smuggling.
- Such adjustments typically affect economic actors who operate around these thresholds, impacting those who frequently deal with financial transactions.
- The scope includes individuals and businesses transacting in significant cash amounts, potentially either legitimizing their activities under new thresholds or subjecting them to new classification.
- Persons and entities engaging in domestic and international financial transactions might be affected.
- All taxpayers who file returns, especially those dealing with cash receipts, may experience administrative changes impacting their filing requirements.
Reasoning
- The policy affects individuals engaged in substantial cash transactions and those dealing with cash flow businesses, where inflation adjustments change reporting requirements.
- The affected group in the US has been estimated at around 20 million, many of whom face changes in how financial thresholds apply to them in legal terms.
- With many people using cash for privacy or convenience, a change in reporting thresholds could lead to increased scrutiny for some and relief for others.
- The budget restrictions mean the impact would need to be significant but targeted, primarily influencing medium-sized businesses and individuals operating near threshold levels.
Simulated Interviews
Small business owner (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I've managed to keep my transactions under the reporting threshold to avoid excessive paperwork.
- This policy might either give me more leeway or force me into new compliance burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Freelance graphic designer (Miami, FL)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- The policy might make it easier to handle my finances without falling afoul of outdated thresholds.
- I hope it reduces my administrative burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Jewelry store owner (Los Angeles, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Adjustments in thresholds might either unburden us or increase regulatory pressure.
- I'm concerned it might complicate my tax filings if it classifies more of my transactions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Software engineer (Houston, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- This policy probably won't affect me unless my crypto gains need specific reporting under cash equivalence rules.
- It seems more relevant to businesses and cash-heavy industries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 7 |
Retired auditor (Chicago, IL)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- I'm interested in how this would shift reporting requirements for small to medium businesses.
- For seasoned professionals, this will require adjustment to new norms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Business consultant (Seattle, WA)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- A policy update like this could simplify some transactions.
- For clients, this could be seen as freeing or burdensome depending on adjustments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Bank teller (Denver, CO)
Age: 25 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 17/20
Statement of Opinion:
- Adjustments might change our workflow and interactions with frequent cash users.
- I hope it makes processing smoother for both customers and banks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Musician (Atlanta, GA)
Age: 37 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- As someone who often receives cash payments, thresholds will directly affect me.
- I'm optimistic for more financial clarity and less compliance hassle.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Independent art dealer (San Francisco, CA)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This policy may make it easier or harder to understand international sales under US law.
- A renewed threshold could alleviate some of my documentation burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Real estate investor (Columbus, OH)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I hope these adjustments simplify the transaction reporting for significant cash purchases.
- This could affect my business strategy if thresholds shift notably.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 6 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $200000000 (Low: $150000000, High: $250000000)
Year 3: $200000000 (Low: $150000000, High: $250000000)
Year 5: $200000000 (Low: $150000000, High: $250000000)
Year 10: $100000000 (Low: $75000000, High: $125000000)
Year 100: $10000000 (Low: $5000000, High: $15000000)
Key Considerations
- Initial implementation costs mainly involve system updates and stakeholder training.
- Potential savings through reduced administrative burdens and compliance costs over time.
- Impact on efficiency of tax enforcement and potential slight improvement in economic transactions although minor.
- No direct impact on inflation.
- Minimal but positive effects on GDP in the long run possible through efficiency gains.