[Thanks, george76.]
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?
Actually, $19.90. There was $10 withheld on the financial transaction of paying you, then another $9.90 when you spent the $990 you actually received.
“Make the nation a business friendly atmosphere and get people working again.”
You make it sound obvious how to accomplish that. Do you actually have ideas on how to accomplish that ?
That’s right. Every debt/deficit situation is a spending problem, not a revenue problem. That goes for people as well as government.
The only difference is government doesn’t add to the economy, but detracts from it.
Tyranny, feudalism, overlording - you know, the usual.
The way I see it, we've got to organize and vote as if our lives depended on it, for at least the next ten years. It'll take that long to rid the country of the elitist scum in government.
The sort of fundamental shift that you describe can only lead to revolution. The ruling class elites have already caused the populace to explode in a civil rebellion with their decades-long transgressions against the Constitution. They're going to push it over into a hot rebellion with tyrannical moves like this one.
YES! Leave the Bush tax cuts in place, and remove onerous restrictions, regulations, fees, etc etc, then get the EPA OUT OF the law making business. They are unelected, bypass congress altogether, and hinder businesses from operating. Lastly, make the unions negotiate and if they will not, go non-union. Those are just a few things.
This reminds me of a story in Analog Science Fiction several decades ago in which every transaction was subject to a “Floating Instantaneous Sales Tax”, or FIST; and the sales tax amount increased or decreased every time a bill was passed by Congress.
Of course, in that story, each computer participating in the transaction had a red button, which the owner could push if they were unhappy when the sales tax amount went up.
If a majority of the voters in a congressional district pushed their red buttons in a 24 hour period , a small explosive charge at the back of the skull of the House member of that district was triggered. If a majority of the voters for the whole state pushed their buttons, the explosive charges for both Senators went off. And if a majority of the voters in the entire country pressed their red button, ....
I think it is called “accountability”.
Congresscritters: you can have your FIST if we can have our “red buttons”.
Deal?
two words...Black Market during the great Utopian Soviet experiment with this nonsense more than half the economy was underground possibly more as the numbers will never be known. Bartering will come back in ernest too. Lets see no bank account, pay what little bills one could get away with by money order for 69 cents each plus 1% new taxes, never accept checks for work done EVER. contract productive efforts with like minded people for cash only and keep a low profile.Work less enjoy life more, I would rather work 3 days a week and have a modest dwelling and a couple of electronic toys bought used of course, than slave for the govt and lazy parasites 6 days a week just to buy a Mc Mansion n 4 plasma tvs, no thanks work 3 days golf 2 and fish one, the 7th is the Lords day spend it with family around a home cooked meal. Wait is this not going GALT? I prefer starving the monkeys myself
I like that idea!
What it boils down to, is, Congress critters wouldn't go astray if there were real repercussions for doing so. We've got to make it hurt when they betray us.
Leaving the Bush tax cuts in place means a 35% marginal income tax rate for successful individuals, small businesses, and corporations. It also means taxing dividends at 35% before a corporation distributes them to shareholders who will then have to pay at least another 15% individual income tax. That’s not enough to make American business competitive with foreign competitors who have flat tax rates of 15%.
Keep in mind that if every INDIVIDUAL paid a flat 10% individual income tax, the IRS would collect more revenue than the current corporate and individual income taxes combined. To really make American businesses competitive, we should eliminate the Corporate income tax completely, and only tax income when it lands in a PERSON’s pocket and then tax at the 10% flat rate.
“Lastly, make the unions negotiate and if they will not, go non-union. “ Actually, the unions negotiated for everything they ever got. The reason they won outrageous wages and benefits from their employers was because they can legally shut-down the business — by striking, picketing, blocking access to the premises, etc. while the business is legally prohibited from firing employees for going on strike. What we need are changes to the law so it’s impossible to shut down a business and legal for an employer to simply fire all striking workers. Businesses have a large investment in trained workers, so they are unlikely to use this option lightly.
HR 4646: The Trojan Horse Tax
[Thanks, george76.]
From xxx | 10/21/2010 9:43:08 PM PDT
It is a real bill. You can see it on Thomas.gov. It is supposed to replace the Individual Income tax. However, this bill would take effect in 2011, but the repeal of the individual income tax won’t happen until 2017 ( like it ever will.
Plus once they have the 1% established , they can raise it at will - remember the original income tax was not to go above 3 % ).
Any financial transaction with a bank will be taxed 1 percent. If you bring cash into the bank to deposit ( which most small businesses such as restaurants do at the end of each business day ) - a 1% tax. If you move money from one account to another - 1% tax. If you get a mortgage, 1% tax - paid upfront. If you sell a stock or buy a stock, a 1 % tax.
This is going to destroy foreign investment in the US. You have corporations that transfer money daily between different banks. Each transfer would result in a 1% tax. If you wire money overseas, it usually goes through more than one bank before it is transferred. Every new bank would be a 1 % tax.
What this is really going to kill are day traders. Though there is a possible future exemption for them ( depends on an international treaty ) by the time they get that signed ( if ever ) they will be out of business. They purchase a stock - 1 %. They sell a stock 1% . they park the money in an overnight holding accoount -1%. They pull it out the next day to purchase stock - 1 %. These guys deal on less than a percent profit per trade. You add all these taxes and the broker fees, they will be losing money on every transaction.
HR4646 One other thing
From xxx | 10/21/2010 9:45:06 PM PDT
If you read at the bottom of the bill, they are pulling a fast one. Get it to the floor the day before Thanksgiving ( so no one will notice ) and vote on it 2 days before Christmas , so no one will notice. Probably a midnight voice vote.
[Thanks, anonymous.]
Thank you Neil Bortz....
They got this idea from you ya-know...
Any other great ideas???
bump
HELLO BLACK MARKET BOOM!!
You deposit your check ... 1% tax
You withdraw your check : 1% tax
EVERY bill you pay 1% tax
F#$% this I'm going cash and will work with my utilities for quarterly billing cycles. This is going to TRASH the velocity of $$$.
It is bogus. One rep keeps sending the bill up. No one is stupid enough to co-sponser the bill.
Snopes
This commie admin has pulled this before.
Most republicans would vote for it too.
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