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Posted: 10/28/2010 5:46:20 AM EDT
Link Posted: 10/28/2010 5:51:22 AM EDT
Link Posted: 10/28/2010 5:53:06 AM EDT
Doesn't look like it is going anywhere.

Such shenanigans would ruin the banking industry and move us to a cash only economy.
Link Posted: 10/28/2010 5:54:26 AM EDT
[Last Edit: 10/28/2010 5:54:41 AM EDT by skygod]
Lets actually read the bill, rather than post links to other forums, shall we?

"To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals."

Link Posted: 10/28/2010 5:56:07 AM EDT
Sounds like another term for a VAT tax, a really bad idea for this country.
Link Posted: 10/28/2010 5:57:25 AM EDT
Debt Free America
It has nice ring to it and after all what kind of crazy Republican bastard wouldn't want America to be out of debt? And I'm sure people who don't have any money in the bank would give it their full support.
Link Posted: 10/28/2010 5:57:40 AM EDT
Consider the source.
Link Posted: 10/28/2010 5:57:48 AM EDT
Why can't the government do with less?

Link Posted: 10/28/2010 6:03:12 AM EDT
Originally Posted By RhinelandArms:
Sounds like another term for a VAT tax, a really bad idea for this country.

Not if it actually did replace personal income tax.
Link Posted: 10/28/2010 6:05:44 AM EDT
It's a tax on every bank transaction.

So if I move money from my checking account to my savings account I get taxed.


Link Posted: 10/28/2010 6:08:14 AM EDT
Actually the law (as proposed) seeks to eliminate the personal income tax by imposing a 1% surcharge on all transactions where money changes hands. It's, essentially, a very low sales tax on all transactions.

It would also split the tax burden in this country in a vastly more transparent and fair way. The rich will still pay more money (just not as a percentage) and the poor will still pay less (including a tax credit to EVERYONE in the county). It also taxes the sales of intermedite and second hand goods so corporations can no longer "avoid" paying the taxes on materials

Here's the summary text:
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.

I really need someone to explain the problem to me.
Link Posted: 10/28/2010 6:08:28 AM EDT
Link Posted: 10/28/2010 6:11:31 AM EDT
[Last Edit: 10/28/2010 6:20:28 AM EDT by RhinelandArms]
A VAT for this country would be a nightmare and destroy the key to our success.

With a VAT it is impossible to recoup your taxes without a shitload of record keeping. Also, every society that implements it, simply stops buying stuff thus taxes rise to offset this effect, its a nasty slippery slope.

With a income tax, if you reinvest it is extremely easy to get your tax money back and this is the easiest way to accumulate wealth. The reinvestment of individuals wealth in this country has been the kingpin of our society as well and few other countries can match what we do. Without it you are going to screw the entire flow of funds to investments worse than obama has so far.

If you want a massive flow of funds to investments with a VAT, all you are going to do is come up with another set of tax regulations a million pages deep and the entire effect will be the exact same with the added downfall of low income households getting hit even harder.

EDIT to add, because VAT is collect at the moment of the transaction it is every socialist wet dream tax plan, thus why europe uses it. On the other hand the republicans flat tax is just flat out fucking stupid(even though its intent is to force the tax payer to see what the current tax burden the Govt is putting on them)
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