Transaction tax to replace income tax?


Richard Moore

Full text version of bill:
In the full text version, we see that the initial amount of the tax is to be 1% on each and every transaction, with the exception of — can you believe it? — stock transactions. That is, fat cats are ‘too big to tax’.
What this tax would mean, is that first you pay 1% of your gross income as soon as you receive it. Then as you spend your income, you pay 1% all over again, one transaction at a time. So the tax rate is actually 2%, and if the rate goes higher, you’re always paying twice the stated rate. And the rate will go higher, as the bill calls for the tax to be adjusted as necessary to pay off the national debt. 
The bill would be absolutely devastating to any business, for in the bill we read:
TRANSACTION- The term ‘transaction’ includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
Clearly the bill is designed to accelerate the total destruction of the economy.
H.R. 4646: Debt Free America Act
111th Congress

Congressional Research Service Summary
The following summary was written by the Congressional Research Service, a well-respected nonpartisan arm of the Library of Congress. GovTrack did not write and has no control over these summaries.
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.

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