H.R. 4646: The 1% Transaction Tax to “Phase Out” Federal Income Tax

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  • Jim Myrtle

    “As we weather a financial crisis, sit on more than $13 trillion in public debt”

    Debt held by the public is a bit under $9 trillion.

    “With anti-government sentiment out there, H.R. 4646 awaits a vote which would institute a 1% transaction tax”

    What a perfectly silly idea.

    “while dangling the carrot of phasing out the federal income tax by 2017″

    Does that mean the bottom half of the earners in the country will give up their EITC and start paying taxes now?

    “Its stated purpose is to raise sufficient revenue from a fee on transactions to eliminate the national debt within seven years”

    LOL! Income tax receipts last year were $915 billion. Assuming you raise that much, plus $1.3 trillion ($9 trillion debt held by the public/ 7 years), you’d be pulling about 150% more out of the economy. I wonder if that might stifle growth? More likely, a giant, cash only, black market would spring up.

    “I’d be open to a 1% transaction tax concept and anything that simplifies the current system, though call me skeptical that the federal income tax would get axed by 2017″

    No kidding, we’d have both and the rates would rise.

  • Ron Paul says that compromising in favor of freedom is the way to go. Adopting one more proposal in favor of one more tax is not increasing freedom in any way. The inflation tax is already a substitute for a transaction tax. One more tax is one more tax. If we want smaller government why should I support one more newfangled tax?

  • Ross Wolf

    Considering the taxes this idea proposes on checking account transactions, why wouldn’t consumers opt to keep their cash under their mattress to pay transactions? Consequently that would deplete banks of funds they need to operate.

    “The 1% fee would be imposed on transactions that use a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument.”“As a result of the transaction tax, every $1.00 you run through a personal checking account would be taxed at 2% (once going in and once going out). Considering at the end of Q2, households held $170 billion in check-able deposits and currency, $6,228.7 billion in time and savings deposits, and $1,109.5 billion in money market fund shares alone, it’s safe to say this could be quite a windfall for the government.”

  • Boston811

    A lot of people don’t have tax liability and pay no federal taxes. Seniors, disabled, etc.

    So, this bill would have them paying 1% of all transactions. Some people will pay more than they normally would pay.

    I am one of them. I don’t have enough taxable income to pay federal tax, so a 1% tax on all my financial transactions would be like adding me to the tax rolls.

    Are some people going to be exempt???

    • I’m not a tax expert and don’t give tax advice. But it appears that yes, it would be like adding you to the tax rolls. No one is exempted in the bill; only potential exclusions to types of transactions are listed (SEC. 4501.(e)).


      For individuals, a credit will be allowed against the tax imposed for the taxable year an amount equal to 1 percent of the taxpayer’s adjusted gross income. If you don’t pay federal taxes, federal tax credits really aren’t that useful haha.

  • Southern_Wolf

    This is an invasion of privacy, plain and simple, not that it is not already happening but now it’s bold and in your face. The Government has been watching every transaction for years. You say bull, well tell me how they know if you make a $5,000.00 and above transaction they know about it. Do you really think they have some sort of 5 thousand dollar trigger that flags only those transactions? The government is going to monitor – even put under scrutiny every transaction and eventually we will be a chash-less society, and that is what they (the government leaches) are going for. It will make tracking a lot easier. It will take time but as said “the wheels turn slow”. High Horsepower gets you there really fast, high Torque just keeps moving. Our government is torque, they don’t move fast but they are strong – because they have money backing them and because mankind is greedy and the politicians know this fact, because they are greedy and have money. America views money as power therefore to even Patriotic Americans the government is strong to them. The morality of America has taken a nose-dive, we have to be politically correct or face possible lose of jobs, lawsuits and even jail/prison time. Today illegal aliens are treated better than Americans that helped build this country. A one percent tax on all transactions will most likely wind up producing more revenue for the government than an income tax as long as corporations have to pay the tax too. I can live with it, guess I’ll have to until someone with money and a true sense of American Patriotism is elected into office. One that loves and upholds the American way of life. Someone that will bring jobs back to America. A man that knows how to help the little man build new industrial empires, like what GE once was before they moved everything to Mexico, China, India, amongst other places. Who benefits by sending work to other countries – the corporate leaders and only the corporate leaders. Yea, the prices are a bit cheaper but it doesn’t matter how cheap the items are if you don’t have a job and money to pay for the items. No, our government, corporations and their lobbyists’ aren’t bringing other countries standards up, they are bring our standards down. Any dummy can see that.

  • This is totally bogus! Please check facts before posting something that will never come to fruition. http://www.snopes.com/politics/taxes/debtfree.asp

  • Lisa

    Great so we have to pay income tax AND a 2% tax on any money transactions? Maybe RON PAUL and the government should first (1 )pay back all the money that was STOLEN from Social Security. (2) Then they could work on the expensive and ongoing money spent on KILLING PEOPLE in wars. (3) Stop the tax breaks and bring OUR jobs back that were STOLEN from us by the Feds. (4) Pass laws to Stop giving big bonuses o Corperate CEOs. (5) Stop paying our Senators and Representatives lifetime pension and benefits when they serve just one term. Stop pensions and medical insurance on ALL federal employees. Taxppayers have low paying or no jobs and no insurance. Why subsidize their insurance and benefits? (6) Stop or cut entirely the high salaries, health insurance, many paid holidays, and long paid vacation of our government workers. (7) Banish Special Interest Group Lobbyists (8) The government got us into this not the American taxpayers so let them take a 10 to 15% cut in salary. We get fired if we don’t do a good job. They destroyed the economy and are STILL working and WANTING US TO PAY FOR THEIR SELFISH, STUPID MISTAKES (8) Do not pay social security death benefits to any widows or children of aliens who only paid into the system fo0r less that 10 years. (9) Deport ALL aliens and confiscate their real properties (10) Stop the “anchor baby” programs. (11) Do not pay food stamps, free health insurance. welfare payments for more than two children born or adopted by two parents or for any alien parents’s children whatsoever. Additional children by either parent are exempt from welfare. (12) Pardon any non-violent prisoners in our State and Federal Prisons incarcerated for light-weight (like pot etc.) convictions (13) Stop wasting our tax money on the War on Drugs (14) Stop us from paying income tax, 2& bank transaction fees, chose either state, city, or taxes and have us pay ONLY one of those. Free up our money so we can spend and help get economy going with our new jobs sent back from India. (12) Pay Senators and Representatives only for HOURS WORKED no a lump sum. (13) Make every large corporation pay a 3% tranaction fee. (14) Raise the interest rates and have large penalitesfor for the corporations who took bail-out money. (15) Send back any foreighners working here on Visas (16) Send back the Foreign Exchange Students and free up more jobs for American. (17) Have the president and governors pay rent of the publically owned properties they live in for free. (18) Force people to vacation lony in the United States until the economy gets better. (19) Have it so online purchases from companies out of state can no longer be taxed. (20) Get our public schools back to sudents learning about all different subjects, doint free thinking. Return to daily Physical Ed, art, and music classes instead of drilling our kids to pass tests. I think this is a good start.

  • Rick

    Why doesn’t congress take no pay until all this insanity by the most worthless 535 quivering mounds of blubbler and flesh in human history get this fixed they did it they should pay for it. Part of the reason for the 2nd amendment allows the population to take up arms and take over the central government to put it back to doing as the Constitution requires. So, congress look out we are watching you. One if by land two if by sea. We have a congress of cowards that steal our money. I am a Vietnam Veteran and all my life the government has crapped on me and my brothers now it’s time for us to do some serious defacating!!!

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