'Tax Everything' tax would bring in $4.4-trillion Democrat's plan would raise levies to pay

wnd ^ | 10/26/10 | Drew Zahn

[Nachum]

U.S. Rep. Chaka Fattah, D-Pa., has proposed a plan for eliminating the multi-trillion-dollar national debt: Tax everything.

Earlier this year, Fattah introduced H.R. 4646, the "Debt Free America Act," which would impose a massive new tax for a period of seven years, while the national debt is being paid off. And once the debt is paid, the bill would eliminate the individual income tax, supplanting it with the new, "transaction" tax instead.

Specifically, H.R. 4646 would levy a 1-percent tax on every transaction of any kind that uses check, cash or credit cards (with a path in place for also taxing stock transfers), whether done at the bank, grocery store, nail salon or even through the Federal Reserve.

[VOA]

bump

[Husker24]

Right, the new tax would be extended forever and they would never get rid of the income tax.

[The Free Engineer]

Where is this road? I was under that impression that Michigan does not have any toll roads.

[UCANSEE2]

[ProtectOurFreedom]

It would 1) force us into a third-world barter economy where people bypass the banking and credit systems and 2) lead to the creation of local and state scrip like happened in the Depression when the money supply dried up.

The author of this bill is astoundingly stupid and ignorant of basic economics and human nature. But he’s a Dem, so I repeat myself.

[Lou L]

People and especially businesses won’t make non-essential transactions in general. This tax will encourage vertical integration of enterprises (which isn’t necessarily a bad thing) to decrease tax expenses.

Maybe I don't fully understand your point, but aren't businesses dependent upon a bunch of transactions? Certainly any kind of manufacturing business is--buying components, then selling to wholesalers and eventually consumers. Even "service-based" industries are dependent upon transactions.

For this reason, such a tax would be horrible for businesses in general, but that's pretty much what I expect from Obama and his merry band of Democrats. Most businesses would come to a screeching halt, and I don't even think you could effectively model how much income such a tax would generate. People that could, would resort to home farming, trading, and bartering for basic goods. We'd be reduced to a third-world economic status.

[UCANSEE2]

Aren’t we still paying for the War of 1812 on our phone bills?

[Waryone]

I’ve got a better idea they have not thought about — cut everything! Everything not specifically enumerated by the Constitution gets cut. No more money appropriated, not one dime, unless the Constitution specifically says the Federal govt. is responsible to do it. After firing all the unnecessary federal employees from all the unnecessary departments and agencies, take all the money left after paying the legitimate bills and pay off the debt.

[earlJam]

I was thinking of 80-90, which is just across the Indiana boarder.

[Schatze]

Michigan’s only toll road was set up as a temporary toll for 10 years to get the highway paid for..... and that was nearly 50 years ago.

Yeah, the Golden Gate Bridge toll was supposed to go away after the bridge was paid for in 1971. The toll is now up to $6.

[funfan]

I have another idea since these politicans ran up the debt
as they are the ones spending the hard earned money of most of the American public-A speedy trial and they are found guilty and sentanced to 100 years hard labor on a chain gain and when they are no longer able to carry out their sentence their relatives will finish their sentence until their debt to society and the american public has been deemed paid in full

[Fu-fu2]

“Aren’t we still paying for the War of 1812 on our phone bills?”

Good one! Can I use that?

[UCANSEE2]

Don’t see why not. Feel free.

[dsrtsage]

While raising 4.3T in taxes, spending will increase 18.49T.

[desertfreedom765]

Its actually the Spanish American war (1898)

[hsalaw]

Wow. This has got to be the stupidest thing I ever heard. The economy would be dead in a week. This guy is even dumber than Boxer, who fell out of the stupid tree and hit every branch on the way down.

[Republic of Texas]

Except that NO TAX EVER GOES AWAY UNLESS THE COUNTRY DISINTEGRATES.

[yldstrk]

don’t worry

we will find ways to avoid taxes

look around you demon rats

it’s happening right now............

people are putting off purchases, making do

trading, going to church rummage sales, ain’t it just killing ya

learning how to do things without hiring YOU as their union labor, lawyer or CPA

or buying from your stores..............

economic power cuts many ways........

[willyd]

In 1989 in Houston, the Doobie Brothers played at the opening of the Beltway. The toll road was going to only be a toll road for four years. It is still a toll road.

[Greysard]

aren't businesses dependent upon a bunch of transactions?

They certainly are, and the most likely outcome of this harebrained scheme is that they all close one day before this tax goes into effect. Switching to scrip is possible, but has its own risks that can be unacceptable for a business. Large businesses will probably leave the country, and if that is made illegal then they will open another company abroad and sell all US assets to it for 1 penny. The most valuable asset, though, is people; many will gladly leave to work in China, be paid in gold (if they wish so) and be able to skip all these confiscatory taxes. The next most valuable asset is IP, and that can't be contained at all. Buildings, computers, forklifts and other junk is worthless compared to people and knowledge.

We'd be reduced to a third-world economic status.

Comrades Mugabe, Kim and Fidel are probably much happier than evil capitalists Sarkozy, Merkel and Netanyahu who can't just order car accidents for their political rivals. 3rd world has plenty of value for an egotistical narcissist. Good that we don't have any of those here... /s