[Thanks, george76.]
[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.]