Democrat's plan would raise levies to pay national debt, phase out IRSPosted: October 26, 2010 9:38 pm Eastern
By Drew Zahn Â© 2010 WorldNetDaily
U.S. Rep. Chaka Fattah, D-Pa., has 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.
In other words, if a man deposits his paycheck into the bank, there would be a 1-percent tax levied on the "transaction." When the same man then withdrew the money through an ATM, there would be another 1-percent tax. When he spends the money to have his car's oil changed, there would be another 1-percent tax, and so forth.
And though the bill's language currently excludes transactions involving stock, the exclusion can be waived if the Treasury secretary recommends waiving it.
Not only consumers would pay the tax, however, but also banks when transferring money, businesses when purchasing supplies and when paying employees, and so forth. Any time money changes hands, someone pays the tax.
"There is no question Congress must begin to make some hard choices now," Fattah's website declares in advocating the measure. "If Congress fails to act, inflationary pressures triggered by staggering debt will create economic conditions unlike anything ever experienced in the history of this country, including the Great Depression."