H.R. 4646--Debt Free America

Proposed--a 1% tax on every transaction made through a bank.  So, if you deposit money, you get to deposit 99% of what is left after the federal goverment has already had their hands on.  I don't normally follow things like this, but this bill is another pernicious tax that will never go away.  So we have income tax, sales tax, transactions taxes.  This new tax is supposed to phase out the old tax, but we all know how tax phase-outs work--well, maybe we just need it for one more year, well, maybe for another, until there is no phase out.

But in the interim, if I have to make a transaction to pay my tax bill, I get to pay 101% of what is owed.

Track H.R. 4646 here.

2/23/2010--Introduced.
Debt Free America Act - States as purposes of this Act the raising of sufficient revenue from a fee on transactions to eliminate the national debt within seven years and the phasing out of the individual income tax. Amends the Internal Revenue Code to impose a 1% fee, offset by a corresponding nonrefundable income tax credit, on transactions that use a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument. Defines "transaction" to include retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions. Establishes in the legislative branch the Bipartisan Task Force for Responsible Fiscal Action to review the fiscal imbalance of the federal government and make recommendations to improve such imbalance. Provides for expedited consideration by Congress of Task Force recommendations. Repeals after 2017 the individual income tax, refundable and nonrefundable personal tax credits, and the alternative minimum tax (AMT) on individuals. Directs the Secretary of the Treasury to: (1) prioritize the repayment of the national debt to protect the fiscal stability of the United States; and (2) study and report to Congress on the implementation of this Act.

Later: corrections made to better reflect the actual intent of the act.

Comments

  1. If I am reading this correctly, this would phase out the income tax?

    What scares me about this is that the government never uses the taxes they collect for what they say they are collecting it for. For example, all the I.O.U.s in the Social Security Fund.

    I'm afraid that all that money would just give them more ideas on creating new ways to throw away our tax money. Then they would say "oh, we're sorry, but we are going to have to keep the income tax. There just wasn't enough to pay off the National Debt".

    ReplyDelete
  2. Dear Anonymous,

    You are correct, I did not read carefully enough. But I do know enough to share your fear. Once established the new tax will remain, and given that there is a seven year "phase-out" of the old, it seems entirely likely that neither will ever go away.

    shalom,

    Steven

    ReplyDelete

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