Congressional Fleecing the Public Legislation - by Stephen Lendman
On February 23, HR 4646: Debt Free America Act was introduced "To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals."
Sponsor Representative Chaka Fattah's (D. PA) same day press release said:
The bill offers a "simple new approach to paying off the debt now escalating past" $13.6 trillion as of late October. "The breakthrough legislation proposes a 1 percent fee (on) all payment instruments including cash transactions, checks, credit cards, those processed through the Federal Reserve Bank, and those collected at the point of sale."
"In addition, taxpayers would receive a 1 percent tax credit for gross income up to $250,000 to offset the impact of the fee," supposedly helping middle and lower-earning households. The bill will also establish a Bipartisan Task Force for Responsible Fiscal Action "to control and limit federal spending." Once the debt "is paid down...broad-based tax reform" would follow.
The bill's text says:
(1) "The current tax structure creates economic distortions that limit growth and job creation."
(2) Complying takes five billion hours and about $200 billion.
(3) Tax code restructuring will promote economic prosperity.
(4) Replacing the federal income tax with a transactions fee will eliminate systemic inefficiency.
The bill aims to raise enough revenue in seven years to begin phasing out the personal income tax, a goal helping big earners more than lesser ones, and provides no help for the millions of low income households paying little or no tax. They, however, will be saddled with an immense burden if this bill passes.
The Bill's Key Section
SEC. 4501. IMPOSITION OF TRANSACTION FEE would impose "on every specified transaction a fee in an amount equal to 1 percent," defined as:
-- those "us(ing) a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument;" and
-- those involving "retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions."
Persons become liable "at the moment (they exercise) control over a piece of property or service, regardless of the payment method."