Posted on 10/06/2010 8:08:17 PM PDT by Windflier
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?
It sounds like a form of VAT tax that goes to the government. You will pay MORE with this kind of a scheme.
Taxing is more to pay debt and spending more is insanity and you know that is what will happen. Round and round we go.
Insert the words "democrat dirty deeds - taxpayers and voters can you afford this?" in front of it and run it with ALL political ads to inform voters what's in store for them if they vote democrat in November.
Just finished our 2009 taxes after our extension. We are so busy growing and creating new products that dealing with the current monstrosity is something we have to set aside time we do not have. The thought that it will get worse actually makes me hate Republicans more then Democrats. It’s the Republicans who I thought in 2000 would begin to create some type of simplification but it has gotten steadily worse no matter who governs. The Repubs had better wake up this time because “We the People” are fed up with all politicians.
And to add insult to injury, when all was said and done, and after we had been snookered out of MORE of our FREEDOM, all that extra money would have gone down the same ratholes that so much of our other tax money goes down, and the national debt would have only gotten BIGGER! The only way the debt will EVER be reduced is with an ENTIRELY NEW crew in Washington, DC!
sfl
A rose by any other name...
This is a Value Added Tax, or VAT. Once it gets implemented, think about how easy it would be for Congress to amend the percentage to any amount they wanted. Even a tenth of a percent does not sound significant but it gives the Government access to even more of our money to do what they damned well please with it.
This is exactly the kind of vindictive legislation I fear this so-called “lame duck” session might turn out against all of us.
There is still a lot of damage this Congress can do, especially if the November elections go as badly for the Dhimmies as it appears it will...
Can you say ... Bend Over! Again!
When the new Congress is sworn in, reducing spending will be on the front burner, starting with ObummerCare.
It's worse than a VAT tax, because it penalizes every single financial transaction, from top to bottom.
BOHICA!
I wouldn’t go to Las Vegas and put a nickel in a slot machine, but I’d bet you any amount of money you’d care to name that the Debt Free America Act will not make America debt-free.
Your 20 or 30 transactions would not increase the 1% tax. If I get paid $1,000 and spend it all in one place, I pay $10 in taxes. If I spend it in 20 places I pay $10 in taxes.
But, let’s just look at my one transaction. Suppose it is a purchase of some new furniture. There is 1% on the lumber; 1% on the lumber mill; 1% on the trucker who delivers it to the factory; 1% on fabrictor who builds the frame. Now, suppose it is upholstered, too. Another dozen or so 1% taxes get added on. Now factor in the wholesaler and the retailer. Perhaps a credit company financed part of the purchase for me. I would be paying 1% on top of the accumulation of dozens of 1% taxes, which would all get added on to the price. So, I probably paid $1,000 for a folding chair.
You can bet your sweet bippy that this was spawned by Democrats. The email I got alerting me to this says that it was authored by House Rep Peter deFazio (D-Oregon) and Senator Tom Harkin (D-Iowa).
Yes, someone ought to use this data in a campaign commercial. It would be devastating.
Yes, our wonderful elitist overseers are finding new ways to protect us and give us less to worry about.
I wonder if this will lead to an ed of banks and credit cards as we know it ... when people choose to quite spending money. except for the bare necessities.
Absolutely true. We'll get closer to that in November, but it'll take a couple more election cycles to clean them all out.
The suspicion is that they'll try to put this through during the lame duck session. If they do, the country needs to explode in revolt to stop it.
Thanks fair taxers. We told you so.
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