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H.R.4646

H.R.4646

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H.R.4646 -- 1% tax on all transactions at any financial institution
H.R.4646 — Debt Free America Act (Introduced in House – IH)

"President Obama’s finance team is recommending a transaction tax. His plan is to sneak it in after the November election to keep it under the radar. This is a 1% tax on all transactions at any financial institution i. e. Banks, Credit Unions, etc.. Any deposit you make, or move around within your account, i. e. transfer to, will have a 1% tax charged. If your pay check or your social Security or whatever is direct deposit, 1% tax charged. If you hand carry a check in to deposit, 1% tax charged, If you take cash in to deposit, 1% tax charged. This is from the man who promised that if you make under $250,000 per year, you will not see one penny of new tax. Keep your eyes and ears open, you will be amazed at what you learn.
Some will say aw it’s just 1%… remember once the tax is there they can raise it at will."


http://www.ohiofreepress.com/tag/debt-free-america-act/

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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 (UNELECTED) Secretary (BUREAUCRATS) 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.’.

http://www.ohiofreepress.com/general/2010/h.r.4646-1-tax-transactions-financial-institution/

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It's an odd thing to do when you can just raise the top income tax bracket. Worked fine when Clinton did it.

1 edit
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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).'.

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(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.


Why? 😕

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I like the idea of a transaction tax, but not as an additoinal tax. If we go to a different tax system, then we need to get rid of the old taxes while we are at it.

I've liked this idea for years now: http://www.apttax.com/

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Originally posted by Palynka
(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.


Why? 😕
Because otherwise people would simply always use foreign brokerages to trade stock.

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Originally posted by sh76
Because otherwise people would simply always use foreign brokerages to trade stock.
Yes... taxing stock trades would be a great idea but it requires a scale of international cooperation that is only a remote possibility in the future.

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are you serious?? a politian you want them to do what they say before being elected, thought people now realised the truth, first priority of anyone going into politics is get elected first , get elected second , get elected third.

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Originally posted by utherpendragon
H.R.4646 -- 1% tax on all transactions at any financial institution
H.R.4646 — Debt Free America Act (Introduced in House – IH)

"President Obama’s finance team is recommending a transaction tax. His plan is to sneak it in after the November election to keep it under the radar. This is a 1% tax on all transactions at any financial institution i. e ...[text shortened]... ere they can raise it at will."


http://www.ohiofreepress.com/tag/debt-free-america-act/[/b]
That seems like a very strange tax! I thought moving money around was good for the economy ... why tax it?

In UK Mr and Mrs Average are used to moving money around to get best deals from banks on various accounts and take advantage of tax free saving .. such a tax here would cause riots.

And 1% !!! Thats pretty heavy.

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Originally posted by wolfgang59
That seems like a very strange tax! I thought moving money around was good for the economy ... why tax it?

In UK Mr and Mrs Average are used to moving money around to get best deals from banks on various accounts and take advantage of tax free saving .. such a tax here would cause riots.

And 1% !!! Thats pretty heavy.
Mr and Mrs Average will receive a 1% tax credit, so the transaction tax - in the round - squarely targets higher earners. As per the above.

3 edits
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Originally posted by sh76
Because otherwise people would simply always use foreign brokerages to trade stock.
Can we begin to phase out banks now? I'm thinking I will begin to stop doing business with them. Do we really need them? What about foriegn on line banks?

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Originally posted by wolfgang59
That seems like a very strange tax! I thought moving money around was good for the economy ... why tax it?

In UK Mr and Mrs Average are used to moving money around to get best deals from banks on various accounts and take advantage of tax free saving .. such a tax here would cause riots.

And 1% !!! Thats pretty heavy.
WHy? Because they are rabid leaches scheming every day how to steal your money. Havn't you figured that out by now? Of course, how can you live and survive without them since they run pretty much everything in our lives now. Oh well, I suppose we should just all just accept the fact that is the way things are and there is nothing to be done to change it.

NOT!!!

Say, how many more Rhinos have been sacrificed today in the primaries?

1 edit
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Originally posted by sh76
Because otherwise people would simply always use foreign brokerages to trade stock.
Right, but that seems true of most financial transactions.

PS: I just noticed is that this is on almost all transactions, not just financial so I guess what I was worried about is less relevant then. This will never pass. It's like a sales tax with a vengeance.

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Originally posted by Palynka
Right, but that seems true of most financial transactions.

PS: I just noticed is that this is on almost all transactions, not just financial so I guess what I was worried about is less relevant then.
Also, with banks, people almost always use banks with local branches that would be subject to local jurisdiction. Banking on a daily basis with a foreign bank to avoid the tax would be extraordinarily inconvenient and so I suppose they're not worried about it.