1% Trasaction tax?!?!?!

H.R.4646
Title: Debt Free America Act
Sponsor: Rep Fattah, Chaka [PA-2] (introduced 2/23/2010) Cosponsors (None)
Related Bills: S.2965
Latest Major Action: 2/23/2010 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, Rules, and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

If this passes there won’t be any cash left in the banks.

Looks a lot like a VALUE ADDED TAX!!! (vat)

Which can (and will) be increased every year.

They must have got the idea from watching ‘Office Space’.

And all the while, the dimislam party is talking about extending the Bush tax cuts.
Yeah right.

I have looked at the final draft and don’t see it. I have checked with Cato and AEI (who read these in depth) and they haven’t seen it.

So, can you provide a RELIABLE source? And it has to be to the FINAL draft of the legislation.

Thanks!

I have no information how likely this would be passed, but I doubt ATM transfer would be taxed. That would be too visible tax on many Dems.

In anycase, GOP should use the prospect of lame-duck session in campaign ads and try to force dem candidate renouncing them or signing a legally binding contract not to do such things (this of course if enforcable but would be nice PR)

H.R.4646

Debt Free America Act (Introduced in House - IH)

SEC. 3. IMPLEMENTATION OF A TRANSACTION FEE.

(a) In General- Subtitle D of the Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter:

`CHAPTER 37--TRANSACTION FEE

`Sec. 4501. Imposition of transaction fee.

`SEC. 4501. IMPOSITION OF TRANSACTION FEE.

`(a) In General- There is hereby imposed on every specified transaction a fee in an amount equal to 1 percent of the amount of such transaction.

`(b) Specified Transaction- For purposes of this chapter--

`(1) IN GENERAL- The term `specified transaction' means any transaction that uses a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument.

`(2) TRANSACTION- The term `transaction' includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.

`(c) Liability for Fee- Persons become liable for the fee at the moment the person exercises control over a piece of property or service, regardless of the payment method.

`(d) Collection- The fees will be collected by the seller or financial institution servicing the transaction and shall be paid over to the Secretary. In the case of a person who fails to collect and pay over the fee as required under this subsection, such person shall become liable for the fee not so collected and paid over.

`(e) Potential Exclusions- Subsection (a) shall not apply to transactions involving stock (and any options or derivatives with respect to stock) until--

`(1) such time as the United States enters into an international agreement that regulates domestic and international stock exchanges, or

`(2) the Secretary issues recommendations regarding the application of the fee as it applies to stock.

`(f) Regulations- The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which require reporting of such information as the Secretary determines appropriate to prevent under reporting of the amounts on which a fee is imposed by this section.'.

(b) Clerical Amendment- The table of chapters for the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36 the following new item:

`Chapter 37. Transaction Fee.'.

(c) Effective Date- The amendments made by this section shall apply to transactions in calendar years beginning after the date of the enactment of this Act.

SEC. 4. INCOME TAX CREDIT DURING PERIOD THAT TRANSACTION FEE AND INDIVIDUAL INCOME TAX ARE IN EFFECT.

(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

`SEC. 25E. CREDIT DURING PERIOD OF TRANSACTION FEE AND INDIVIDUAL INCOME TAX.

`(a) In General- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 1 percent of the taxpayer's adjusted gross income.

`(b) Phaseout Based on Adjusted Gross Income- The credit allowed under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount of such credit (determined without regard to this subsection) as--

`(1) the excess (if any) of the taxpayer's adjusted gross income for such taxable year over $100,000 ($250,000 in the case of a joint return), bears to

`(2) $10,000 ($20,000 in the case of a joint return).'.

(b) Clerical Amendment- The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:

`Sec. 25E. Credit during period of transaction fee and individual income tax.'.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning during calendar years beginning after the date of the enactment of this Act.

SEC. 5. ESTABLISHMENT OF TASK FORCE.

(a) In General- Title III of the Congressional Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended by adding at the end the following new section:

`ESTABLISHMENT OF TASK FORCE FOR RESPONSIBLE FISCAL ACTION

`Sec. 316. (a) Definitions- In this section:

`(1) TASK FORCE- The term `Task Force' means the Bipartisan Task Force for Responsible Fiscal Action established under subsection (b)(1).

`(2) TASK FORCE BILL- The term `Task Force bill' means a bill consisting of the proposed legislative language of the Task Force recommended under subsection (b)(3)(B) and introduced under subsection (e)(1).

`(3) FISCAL IMBALANCE- The term `fiscal imbalance' means the gap between the projected revenues and expenditures of the Federal Government.

`(b) Establishment of Task Force-

`(1) ESTABLISHMENT- There is established in the legislative branch a task force to be known as the `Bipartisan Task Force for Responsible Fiscal Action'.

`(2) PURPOSES-

`(A) REVIEW- The Task Force shall review the fiscal imbalance of the Federal Government, including--

`(i) analyses of projected Federal expenditures;

`(ii) analyses of projected Federal revenues; and

`(iii) analyses of the current and long-term actuarial financial condition of the Federal Government.

`(B) IDENTIFY FACTORS- The Task Force shall identify factors that affect the long-term fiscal imbalance of the Federal Government.

`(C) ANALYZE POTENTIAL COURSES OF ACTION- The Task Force shall analyze potential courses of action to address factors that affect the long-term fiscal imbalance of the Federal Government.

`(D) PROVIDE RECOMMENDATIONS AND LEGISLATIVE LANGUAGE- The Task Force shall provide recommendations and legislative language that will significantly improve the long-term fiscal imbalance of the Federal Government, including recommendations addressing--

`(i) Federal expenditures;

`(ii) Federal revenues; and

`(iii) the current and long-term actuarial financial condition of the Federal Government.

`(3) DUTIES-

`(A) IN GENERAL- The Task Force shall address the Nation's long-term fiscal imbalances, consistent with the purposes described in paragraph (2), and shall submit the report and recommendations required under subparagraph (B).

`(B) REPORT, RECOMMENDATIONS, AND LEGISLATIVE LANGUAGE-

`(i) IN GENERAL- Not earlier than November 3, 2010, and not later than November 9, 2010, the Task Force shall vote on a report that contains--

`(I) a detailed statement of the findings, conclusions, and recommendations of the Task Force;

`(II) the assumptions, scenarios, and alternatives considered in reaching such findings, conclusions, and recommendations; and

`(III) proposed legislative language to carry out such recommendations as described in paragraph (2)(D).

`(ii) APPROVAL OF REPORT- The report of the Task Force submitted under clause (i) shall require the approval of not fewer than 14 of the 18 members of the Task Force.

`(iii) ADDITIONAL VIEWS- A member of the Task Force who gives notice of an intention to file supplemental, minority, or additional views at the time of final Task Force approval of the report under clause (ii), shall be entitled to not less than 3 calendar days in which to file such views in writing with the staff director of the Task Force. Such views shall then be included in the Task Force report and printed in the same volume, or part thereof, and their inclusion shall be noted on the cover of the report. In the absence of timely notice, the Task Force report may be printed and transmitted immediately without such views.

`(iv) TRANSMISSION OF REPORT- No later than November 15, 2010, the Task Force shall submit the Task Force bill and final report to the President, the Vice President, the Speaker of the House, and the majority and minority leaders of both Houses.

`(v) REPORT TO BE MADE PUBLIC- Upon the approval or disapproval of the Task Force report pursuant to clause (ii), the Task Force shall promptly make the full report, and a record of the vote, available to the public.

`(4) MEMBERSHIP-

`(A) IN GENERAL- The Task Force shall be composed of 18 members designated pursuant to subparagraph (B).

`(B) DESIGNATION- Members of the Task Force shall be designated as follows:

`(i) The President shall designate 2 members, one of whom shall be the Secretary of the Treasury, and the other of whom shall be an officer of the executive branch.

`(ii) The majority leader of the Senate shall designate 4 members from among Members of the Senate.

`(iii) The minority leader of the Senate shall designate 4 members from among Members of the Senate.

`(iv) The Speaker of the House of Representatives shall designate 4 members from among Members of the House of Representatives.

`(v) The minority leader of the House of Representatives shall designate 4 members from among Members of the House of Representatives.

`(C) CO-CHAIRS-

`(i) IN GENERAL- There shall be 2 Co-Chairs of the Task Force. The President, majority leader of the Senate, and Speaker of the House shall designate one Co-Chair among the members of the Task Force. The minority leader of the Senate and minority leader of the House shall designate the second Co-Chair among the members of the Task Force. The Co-Chairs shall be appointed not later than 14 days after the date of enactment of this section.

`(ii) STAFF DIRECTOR- The Co-Chairs, acting jointly, shall hire the staff director of the Task Force.

`(D) DATE- Members of the Task Force shall be designated by not later than 14 days after the date of enactment of this section.

`(E) PERIOD OF DESIGNATION- Members shall be designated for the life of the Task Force. Any vacancy in the Task Force shall not affect its powers, but shall be filled not later than 14 days after the date on which the vacancy occurs in the same manner as the original designation.

`(F) COMPENSATION- Members of the Task Force shall serve without any additional compensation for their work on the Task Force. However, members may be allowed travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code, while away from their homes or regular places of business in performance of services for the Task Force.

`(5) ADMINISTRATION-

`(A) AUTHORITY TO ESTABLISH RULES AND REGULATIONS- The Co-Chairs, in consultation with the other members of the Task Force, may establish rules and regulations for the conduct of Task Force business, if such rules and regulations are not inconsistent with this section or other applicable law.

`(B) QUORUM- Fourteen members of the Task Force shall constitute a quorum for purposes of voting, meeting, and holding hearings.

`(C) VOTING-

`(i) PROXY VOTING- No proxy voting shall be allowed on behalf of the members of the Task Force.

`(ii) REPORT, RECOMMENDATIONS AND LEGISLATIVE LANGUAGE-

`(I) DATES- The Task Force may not vote on any version of the report, recommendations, or legislative language before the timing provided for in paragraph (3)(B)(i).

`(II) CONGRESSIONAL BUDGET OFFICE AND JOINT COMMITTEE ON TAXATION ESTIMATES- The Congressional Budget Office and Joint Committee on Taxation shall provide estimates of the Task Force report and recommendations (as described in subsection (b)(2)(D)) in accordance with section 308(a) and 201(f) of the Congressional Budget Act of 1974. The Task Force may not vote on any version of the report, recommendations, or legislative language unless a final estimate is available for consideration by all the members at least 72 hours prior to the vote.

`(D) HEARINGS- The Task Force may, for the purpose of carrying out this section, hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and administer such oaths the Task Force considers advisable.

`(c) Expedited Consideration of Task Force Recommendations-

`(1) INTRODUCTION-

`(A) RECONVENING-

`(i) IN THE HOUSE OF REPRESENTATIVES- Upon receipt of a report under subsection (b)(3)(B), the Speaker, if the House would otherwise be adjourned, shall notify the Members of the House that, pursuant to this section, the House shall convene not later than November 23, 2010.

`(ii) IN THE SENATE-

`(I) CONVENING- Upon receipt of a report under subsection (b)(3)(B), if the Senate has adjourned or recessed for more than 2 days, the majority leader of the Senate, after consultation with the minority leader of the Senate, shall notify the Members of the Senate that, pursuant to this section, the Senate shall convene not later than November 23, 2010.

`(II) ADJOURNING- No concurrent resolution adjourning the Senate for more than 3 days shall be in order until the Senate votes on passage of the Task Force bill under paragraph (2)(B)(iv).

`(B) INTRODUCTION OF TASK FORCE BILL- The proposed legislative language contained in the report submitted pursuant to subsection (b)(3)(B), upon receipt by the Congress, shall be introduced not later than November 23, 2010, in the Senate and in the House of Representatives by the majority leader of each House of Congress, for himself, the minority leader of each House of Congress, for himself, or any member of the House designated by the majority leader or minority leader. If the Task Force bill is not introduced in accordance with the preceding sentence in either House of Congress, then any Member of that House may introduce the Task Force bill on any day thereafter. Upon introduction, the Task Force bill shall be referred to the appropriate committees under subparagraph (C).

`(C) COMMITTEE CONSIDERATION- A Task Force bill introduced in either House of Congress shall be jointly referred to the committee or committees of jurisdiction and the Committee on the Budget of that House, which committees shall report the bill without any revision and with a favorable recommendation, an unfavorable recommendation, or without recommendation, not later than 7 calendar days after the date of introduction of the bill in that House, or the first day thereafter on which that House is in session. If any committee fails to report the bill within that period, that committee shall be automatically discharged from consideration of the bill, and the bill shall be placed on the appropriate calendar.

`(2) EXPEDITED PROCEDURES-

`(A) FAST TRACK CONSIDERATION IN HOUSE OF REPRESENTATIVES-

`(i) PROCEEDING TO CONSIDERATION- It shall be in order, not later than 2 days of session after the date on which a Task Force bill is reported or discharged from all committees to which it was referred, for the majority leader of the House of Representatives or the majority leader's designee, to move to proceed to the consideration of the Task Force bill. It shall also be in order for any Member of the House of Representatives to move to proceed to the consideration of the Task Force bill at any time after the conclusion of such 2-day period. All points of order against the motion are waived. Such a motion shall not be in order after the House has disposed of a motion to proceed on the Task Force bill. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. The motion shall not be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order.

`(ii) CONSIDERATION- The Task Force bill shall be considered as read. All points of order against the Task Force bill and against its consideration are waived. The previous question shall be considered as ordered on the Task Force bill to its passage without intervening motion except 100 hours of debate equally divided and controlled by the proponent and an opponent, and any motion to limit debate. A motion to reconsider the vote on passage of the Task Force bill shall not be in order.

`(iii) APPEALS- Appeals from decisions of the chair relating to the application of the Rules of the House of Representatives to the procedure relating to a Task Force bill shall be decided without debate.

`(iv) APPLICATION OF HOUSE RULES- Except to the extent specifically provided in paragraph (2)(A), consideration of a Task Force bill shall be governed by the Rules of the House of Representatives. It shall not be in order in the House of Representatives to consider any Task Force bill introduced pursuant to the provisions of this subsection under a suspension of the rules pursuant to Clause 1 of House Rule XV, or under a special rule reported by the House Committee on Rules.

`(v) NO AMENDMENTS- No amendment to the Task Force bill shall be in order in the House of Representatives.

`(vi) VOTE ON PASSAGE- Immediately following the conclusion of consideration of the Task Force bill, the vote on passage of the Task Force bill shall occur without any intervening action or motion, requiring an affirmative vote of three-fifths of the Members, duly chosen and sworn. If the Task Force bill is passed, the Clerk of the House of Representatives shall cause the bill to be transmitted to the Senate before the close of the next day of session of the House. The vote on passage shall occur not later than December 23, 2010.

`(vii) VOTE- The House Committee on Rules may not report a rule or order that would have the effect of causing the Task Force bill to be approved by a vote of less than three-fifths of the Members, duly chosen and sworn.

`(B) FAST TRACK CONSIDERATION IN SENATE-

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This is some kind of whacked “fair” tax scheme that will never come out of committee.

So, this is PROPOSED legislation?

I will ask the banking committee members in the House and Senate.

They know that “1%” sounds like a little, but it is on EVERY transaction!!! This will amount to at least a 10% tax on everyone!
They are not crazy. They are marxists. They don’t care what we think of them. They are throwing excrement at the wall in the hopes that some of it will stick.
Take them very seriously.

Fact check shoots this down.

http://factcheck.org/2010/09/1-transaction-tax/

They are not crazy. They are marxists. They don’t care what we think of them. They are throwing excrement at the wall in the hopes that some of it will stick. Take them very seriously.

BUMP

If something like this passes and doesn’t make you want to take up arms, I don’t know what would!

One of the main drivers of the run on banks in the 1930’s was Roosevelt placing a fee on writing checks.

People simply took their money out in cash.

These dumb*sses never learn.

As a side note, so many ‘facts’ about the depression that are accepted today are false, thanks to our Progressive leaning educrats. Roosevelt ‘saving us fromthe Great Depression’ is rarely questioned

This would work if it were the ONLY tax. It would be completely neutral in its effects, and favor no one.

For this reason, it will never happen.

These guys have got to go, tell the beast down boy, beat it with your votes in NOV..

This will put an end to a lot of speculative activity. People will cash their paychecks and stick their money in a mattress in order to avoid this tax. This proposal is custom-made to slam the brakes on the entire national economy.

The only thing Washington gives a damn about is extracting money to pay for their wish-lists and pay-offs. It it kills the US economy and throws millions out of work, those are just the eggs they have to break.

Fact check shoots this down. http://factcheck.org/2010/09/1-transaction-tax/

Maybe "fact check" should go to Thomas.gov and look it up.