The bill is HR-4646
One percent transaction tax is proposed
President Obama's finance team is recommending a transaction tax. His plan is to sneak it in after the November election to keep it under the radar.
This is a 1% tax on all transaction at any financial institution i. e. Banks, Credit Unions, extra. Any deposit you make, or move around within your account, i. e. transfer to, will have a 1% tax charged. If your pay check or your social Security or whatever is direct deposit, 1% tax charged. If you hand carry a check in to deposit, 1% tax charged, If you take cash in to deposit, 1% tax charged.This is from the man who promised that if you make under $250,000 per year, you will not see one penny of new tax.
Keep your eyes and ears open, you will be amazed at what you learn.
Lee Hoecherl
Washington Terrace
http://www.standard.net/node/44797
HR 4646-The Debt Free America Act
As many of you know recent polls show an utter mistrust between the citizens of this great country and its government. The reasons for this are many and another one has just reared its ugly head: HR 4646-The Debt Free America Act.
This wonderful sounding new bill that is making its way through committee in the House of Representatives is what I have dubbed the “Trojan Horse Tax” for reasons that I will explain below but first the text of the bill itself. You see I actually believe that we should READ THE BILL first.
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. (Courtesy www.govtrack.us)
Immediately upon reading this people are taken in by the thought of abolishing the dreaded Income Tax Law. However, before you go swooning over this proposal and lend your support for this bill you should keep something in mind. Why would the federal government, which runs solely off of the income it collects from its citizens, kill the one thing that allows it to operate? It wouldn’t and that is where the “Trojan Horse” aspect of this tax comes into play. Just look at what this tax would entail:
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.
Ask yourself this question: How many “transactions” that would fall under this particular definition are you involved with every day? 10, 20, 30? Once you realize what this will mean you start to get the picture of what this is.
Let’s say hypothetically that you are involved with 10-20 “transactions” daily. Then instead of paying a 1% tax you have now just paid a 10-20% tax. do you see how easily this can snowball?
Most people won’t dispute a 1% tax. Especially when they believe it will go toward paying off the national debt. However, what most people won’t realize, until it is too late that is, is that this tax will grow exponentially over time until it’s much more than just a 1% tax.
As I said earlier, the government would not give up its sole source of income UNLESS they knew they had a better alternative which is what this is. The 1% figure is a foundational number that establishes the tax. Once in place the government can raise it at will. They can spend, spend, spend and then “adjust” the tax over time to make sure that all of this spending can be paid for.
There is an other thing about this bill that gives it a “Trojan Horse” like aspect: it will affect everyone.
Think for a moment about the people that do NOT pay income taxes now. The poor, those on welfare, etc. According to the latest IRS compiled data roughly 50% of the people in this country do NOT pay income taxes. Personally I am all for everyone paying their fair share.
I feel that if you don’t pay taxes you should not be allowed to vote. After all, you don’t have any skin in the game so why should be involved with the outcome? But I digress.
This tax will ensnare those people who currently do NOT pay income taxes and when that little piece of news gets out you can bet there will be major opposition. Even they conduct “transactions” on a daily basis. With much less frequency I would imagine but they do it just the same. This realization will hit them hard.
The other thing that this tax does is provide another way for the government to “tax the rich” and redistribute wealth. More than any other demographic, the “rich” are more likely to be involved with financial transactions and to move money around.
Therefore this is a back-door way to tax them and to redistribute that wealth back to the government. However, this bill does NOT discriminate when it comes to who will be taxed…it hits everyone.
The government, Congress and those that are supposed to represent us keep asking themselves how it is that they could have lost the support of the American People to the point where they are no longer trusted. Yet they continue to put forward legislation that backs up the reasons behind that mistrust and if anything reinforces our reasons for feeling that way.
Just as the real Trojan Horse was a surprise tactic that wreaked havoc upon its target, this tax will have the very same effect. However, just like the real Trojan Horse, by the time the true reason behind it is revealed it will be too late.
