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 transactions at any financial institution I. e. Banks, Credit Unions, etc.. 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.
remember once the tax is there they can raise it at will.
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.
H.R. 4646: Debt Free America Act (GovTrack.us)
To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals.
Currently in committee...
Sounds like a national sales tax of 1%, which would in 2017 replace the personal income tax. Until then, the extra revenue would 'allegedly' be used to pay down the debt.
Not sure how I feel about this.
It is not a sales tax. It is a tax on bank transactions. Any transaction made at a financial institution will be taxed. How much do you want to bet the income tax will not go away in 7 years?
Defines "transaction" to include retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
The Snopes.com article on this matter is very clear:
- Neither Pres. Obama's finance team nor House Speaker Nancy Pelosi is recommending a 1% transaction tax.
- The Debt Free America Act is purely the effort of a single congressman, House Rep. Chaka Fattah.
- The proposed bill has never gained traction in the 6 attempts to bring such to the House floor including this latest attempt.
The irony here is that if such a bill were ever to be enacted and there was a guarantee that the income tax would be eliminated by a specific timeframe, $0.01 per transaction really isn't such a large price to pay. Consider how often you use your debt card, credit card or have your pay check direct deposited to your personal bank account. I'd say on average I use my debit card 3-5 times per day, I don't use credit cards and on average most of us get paid 2-4 times per month.
5 debit card transactions per day = $0.05 cent X 7 = $0.35 per week X 4 weeks = $1.40 per month X 12 months per year = $16.80
4 direct deposits per month = $0.04 cents X 12 months = $0.48 per year
Total Est. Avg annual transaction fee = $17.28
Compare that to the 25% income tax taken from your pay every pay period. I'd say it's an extremely small price to pay for the average consumer compared to what we're all paying right now under the current tax rules. And let's not even think about the number of ATM bank fees most consumers are charged if they use a non-member bank ATM.
This proposal really doesn't sound half bad when you really sit down and do the math.
Except your math is wrong. It's not a penny per transaction. It's 1%.
BTW OV, I wouldn't rely too heavily on SNOPES.COM if I were you. I put them in line with HuffPo and so on.