If this H.R. 4646 bill passes into law, then there will be a one percent (1%) tax on every transaction. Rep. Chaka Fattah of Pennsylvania introduced the bill on February 23, 2010 and the bill is currently in committee. I do not have a problem with the bill if all other personal income tax laws and regulations are concurrently abolished. Otherwise, this transaction tax will be an additional tax on top of all the current taxes.
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.
Rep. Fattah, Author of Debt Free America Act, Says:
“Let’s Abolish April 15 as Personal Income Tax Day!”
WASHINGTON D.C., April 15, 2010 -- Congressman Chaka Fattah (D-PA), author of the Debt Free America Act, H.R. 4646, pending in the 111th Congress, issues the following statement:
“We can’t erase today - April 15 - from the calendar on the wall. But my Debt Free America Act will abolish April 15 as the day that Americans dread as the filing deadline for their personal federal income taxes.
“How can we accomplish that? With my bold plan for a penny-on-the-dollar transaction fee that will wipe out the national debt within seven years – and then fund the federal government while abolishing personal income taxes.
“Under the Debt Free America Act, the one percent fee on transactions in the United States would be directed to eliminating America’s national debt that existed on January 20, 2009 – about $10 trillion -- and reducing the deficit. Once that debt is paid off, over the next seven years, the fee’s proceeds would be directed to broad-based tax reform to include elimination of personal income taxes.
“Taxpayers earning $125,000 (or $250,000 for those filing jointly) would receive a year’s-end one percent credit on their income, eliminating the impact of the transaction fee on middle class and low income Americans. In addition, my bill provides statutory authority for the Bipartisan Task Force for Responsible Fiscal Action to control and limit federal spending, recently established by President Obama by executive order.
“The soaring national debt and rising deficits translate into bad outcomes for all Americans. Today of all days, with the tax filing deadline just hours away, it’s time for thinking outside the box.
“Imagine, just one penny making a difference. When my Debt Free America Act becomes law, we can look forward to the time that we can abolish April 15 as Tax Filing Day for Americans’ personal income taxes.”