H.R. 4646:Debt Free America Act 1% tax on all bank transactions

[knarfxii]

H.R. 4646:

Debt Free America Act http://www.govtrack.us/congress/bill.xpd?bill=h111-4646

[Mike4Freedom]

if they pass this, i am going to all bullion i am done with banking. This is insanity.

[Kregisen]

Very interesting....gets rid of the income tax, so this really isn't horrible....though they shouldn't be taxing bank transactions.

[Matthew Zak]

Yeah, and 1% turns into 2%...

I'm close to losing my mind.

[awake]

This is not a tax on the banks... It is a tax on the people. The banks become the governments tax collectors, the cost gets passed along with little effect on any banking ledger..

[Humanae Libertas]

Yeah, and 1% turns into 2%...

I'm close to losing my mind.

More like 20%, and so on.

[HOLLYWOOD]

Yeah, and 1% turns into 2%...

I'm close to losing my mind.

Yes in Indeed... let's look at what President Woodrow Wilson did on taxing the people. Look what happen with this Wilson Warmongering, League of Nations, Progressive, & CONgress on taxing Americans within 5 years.

1913 Tax Rates (Year One)
http://i533.photobucket.com/albums/ee332/McLieberman/IncomeTAX-1913.png


1918 Tax Rates (Year Five)

http://i533.photobucket.com/albums/ee332/McLieberman/IncomeTAX-1918.png

[Knightskye]

So, if you used your debit or credit card at the store, who would pay the x% fee?

[BrendenR]

if they pass this, i am going to all bullion i am done with banking. This is insanity.

Unless you're done using dollars, you wouldn't be able to avoid this:



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.

I'm assuming this tax would be collected much like state sales taxes, where the proprietor collects the tax as part of the purchase price.

[susano]

‘SEC. 4501. IMPOSITION OF TRANSACTION FEE.
‘(a) In General- There is hereby imposed on every specified transaction a fee in an amount equal to 1 percent of the amount of such transaction.
‘(b) Specified Transaction- For purposes of this chapter--
‘(1) IN GENERAL- The term ‘specified transaction’ means any transaction that uses a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument.
‘(2) TRANSACTION- The term ‘transaction’ includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
‘(c) Liability for Fee- Persons become liable for the fee at the moment the person exercises control over a piece of property or service, regardless of the payment method.
‘(d) Collection- The fees will be collected by the seller or financial institution servicing the transaction and shall be paid over to the Secretary. In the case of a person who fails to collect and pay over the fee as required under this subsection, such person shall become liable for the fee not so collected and paid over.
‘(e) Potential Exclusions- Subsection (a) shall not apply to transactions involving stock (and any options or derivatives with respect to stock) until--
‘(1) such time as the United States enters into an international agreement that regulates domestic and international stock exchanges, or
‘(2) the Secretary issues recommendations regarding the application of the fee as it applies to stock.
‘(f) Regulations- The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which require reporting of such information as the Secretary determines appropriate to prevent under reporting of the amounts on which a fee is imposed by this section.’.
(b) Clerical Amendment- The table of chapters for the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36 the following new item:



This is a fee on EVERYTHING but stocks and other trading.

Who do you suppose wrote this piece of bankster friendly SHIT?

What is 1% of your house payment? Utilities? PROPERTY TAXES? Car insurance? And every other thing you must pay to survive?

[Stary Hickory]

Hmmmm how about a 1% reduction in government spending instead? Whats that congress crittets? UNTHINKABLE!! Well go Ummf yourselves then.

[DamianTV]

Very interesting....gets rid of the income tax, so this really isn't horrible....though they shouldn't be taxing bank transactions.

So how long until 1% turns into 15% then 30%? And the banks impose their own fees on top of this to cover their transactional expenses?

A better replacement for the Income Tax would be a big fat hairy buck toothed NOTHING.

[dean.engelhardt]

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.


This is a little laughable. I see to co-sponsors yet.

[knarfxii]

This is a little laughable. I see to co-sponsors yet.

no co sponsor!

[Dr.3D]

I see they are trying to keep people from buying things. This should be good for the economy. :rolleyes:

[2young2vote]

This is a wonderful incentive to get people to take all of their money out of the banking system. If i had to pay 1% on all bank transactions i would just take my money out and hide it under my bed...literally.

[ChaosControl]

This is a wonderful incentive to get people to take all of their money out of the banking system. If i had to pay 1% on all bank transactions i would just take my money out and hide it under my bed...literally.

Except that taking it out would be a banking transaction and you'd be taxed on that.

[tangent4ronpaul]

I see that they want to tax wholesale purchases. Last I heard those were tax exempt because you got taxed at the retail level. So now, whatever you buy get's taxed twice - first wholesale (hidden in the marked up price) and at time of purchase - retail - that you seel

This would also seem to be a war on paying with cash, as you get taxed for withdrawing it, and then taxed for spending it while plastic only gets taxed once.

One assumes that making deposits would also be taxed as they are a transaction...

so lets see... deposit check (tax one), withdraw cash (tax two) go to store and buy something (tax three) that has already been taxed at the wholesale level (tax 4) - WHOOOPPPPPTTTYYY DO! 4% tax on everything!

:rolleyes::mad:

-t

[Fox McCloud]

I can't see this turning out well; this is just a 1% income tax on everyone, especially if effects cashing a check; they claim it'll pay down the debt, but I'm not so sure about that. I could see it being put into place and staying there...along with the income tax too, meaning your tax-bracket would be your income-tax bracket+1%.

Even worse, people won't use banks as much either; they'll cash their checks and take the 1% hit, then keep their money at home...and hey, might as well; if you deposit it, you'll get another 1% charge when you withdraw, effectively turning it into a 2% tax.

Now, if the bill does exactly as the summary states and the income tax is repealed entirely, and only the 1% tax stays in place, then I think it'd be better, in the long run.

Shame it doesn't eliminate the corporate income tax as well.

edit: this would kill credit card cashback for everyday purchases. The normal cashback is 1%...so....yeah, say bye-bye to that.

[Dr.3D]

Employers would have to start paying in cash.

[Fox McCloud]

Employers would have to start paying in cash.

and considering the income tax wouldn't be phased out until 2017, paying in cash, in the mean time, would be an excellent way to avoid the income tax as well! =p

[Romulus]

Fuck this!

[Luis Carlos da Silva]

Regarding advantages and disadvantages of a bank transactions tax, let me draw your attention to a recent book that discusses the Brazilian experience with its use as internal form of taxation.

The book is available at www.amazon/books and is called.

Bank Transactions: Pathway to the single tax ideal by Marcos Cintra, a Harvard trained professor of Economics in Brazil.

After all, is a Bank transactions tax a bad idea?

This book proves that this modern tax technology may become the building block for tax reform around the world.

Tax reform is a recurrent theme in public policy around the world. Nevertheless, since the spread of value-added taxes (VAT´s) in the second half of the nineteen hundreds, little technological progress has taken place in this important field of public policy.

This book brings fresh new concepts into this debate, and shows that

a-) value-added taxes can be rightfully challenged in its presumptive virtues of neutrality, efficiency, economicity, and equity, especially in countries with a federal political organization, and

b-) bank transactions taxes, a tax species that evolved directly out of technological modernization of monetary and banking institutions with the coming of the electronic age, could displace VAT´s as the predominant element in tax reform around the world.

The typical criticism of turnover taxes, such as a bank transactions tax, stresses the allocative distortions which they presumably introduce in the economy through massive relative-price changes introduced by its cumulative nature.

In this book, such widely accepted “truth”, which has become dogma among economists, is carefully tested through the use of input-output simulation models for 110 products constructed from Brazilian National Accounts data. It is shown that such uncritical belief in the superiority of value-added taxation is based on a set of strong assumptions which are, nevertheless, seriously weakened by lack of empirical validation.

The conclusion is that since bank transaction taxes require lower tax rates than VAT´s to collect a given revenue target, they introduce less allocative distortions than conventional tax systems, and can be more efficient than value-added taxation.

Best regards

Luis Carlos da Silva

[TheBlackPeterSchiff]

Dont like taxes, but this sounds better then a damn income tax.

[LibertyEagle]

If they're wanting to cause a bank run, this is one way to do it.

[LibertyEagle]

Debt free America Act, my ass!!! Stop spending our money you jackasses! There is no amount of money that can appease the monster our government has become.

The American people had damn sure better wake the hell up and soon. Where are their damn brains?! Money doesn't fall from the sky. The Piper has to be paid eventually and that eventually is almost here. Wake the *&&^% up, America!!!

EDIT: I know one way to make America debt free and it is to fire all those SOBs and try them for treason. :mad:

[TonySutton]

This is not a 1% tax on bank transactions, it is a 1% tax on ALL transactions!

From the bill:

‘(2) TRANSACTION- The term ‘transaction’ includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.

(d) Collection- The fees will be collected by the seller or financial institution servicing the transaction and shall be paid over to the Secretary. In the case of a person who fails to collect and pay over the fee as required under this subsection, such person shall become liable for the fee not so collected and paid over.

(bold mine)

[sailingaway]

Like every time you use your debit card?

[2young2vote]

Except that taking it out would be a banking transaction and you'd be taxed on that.

Yes, but A) it would be one time transaction and B) it could be taken out before this system goes into effect. I wouldn't want to keep my money in a place that would tax me every time i took my own money out.

[Brian4Liberty]

This is a fee on EVERYTHING but stocks and other trading.

Who do you suppose wrote this piece of bankster friendly SHIT?


Great question. Let's see...the same people that lobbied to make capital gains taxes low? The same people who lobbied to make mortgages tax-deductible? The same people who created the Federal Reserve? Are we getting close?

[torchbearer]

Employers would have to start paying in cash.

i've always wondered what the law was on that-
you have to accept frns for all debts, but i don't think you have to take a check written in frns. or do you?
those gold atm machines would work out nice.
get paid in cash, go to machine- get your gold. go home.

[Brian4Liberty]

Where does this bill say anything about "Bank Transactions"? Misleading thread title...

[Brian4Liberty]

This Bill does not eliminate annual income tax filing! Makes it pretty easy to just start adding back a little tax on that income...


‘SEC. 25E. CREDIT DURING PERIOD OF TRANSACTION FEE AND INDIVIDUAL INCOME TAX.

‘(a) In General- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 1 percent of the taxpayer’s adjusted gross income.

‘(b) Phaseout Based on Adjusted Gross Income- The credit allowed under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount of such credit (determined without regard to this subsection) as--

‘(1) the excess (if any) of the taxpayer’s adjusted gross income for such taxable year over $100,000 ($250,000 in the case of a joint return), bears to

‘(2) $10,000 ($20,000 in the case of a joint return).’.