Did you guys see the summary where it says that this would, in 2017, repeal the individual income tax?
I might be OK with this passing. A 1% tax on all bank transactions... I'll just withdraw my money. Forty nine cents at a time. Or all of it, the day before this becomes effective.
But... If the US paid off all of the debt we wouldn't have any money.
I would love to see this pass just so the Treasury Secretary would have to testify in front of Congress how the US money system actually works.
No Debt = No Money.
The way I understand it, for all intents and purposes, every dollar in circulation is borrowed from somewhere: China. Japan, The Federal reserve...
Did you guys see the summary where it says that this would, in 2017, repeal the individual income tax?
I might be OK with this passing. A 1% tax on all bank transactions... I'll just withdraw my money. Forty nine cents at a time. Or all of it, the day before this becomes effective.
It would not affect any state taxes, as the states and federal government are still seperate (at the moment).
Would this also repeal payroll tax? What constitutes a "transaction"? If I move my money from savings to checking is that a transaction?
What guarantee do we have that the personal income tax will actually be repealed other than a promise that can be changed? What guarantee do we have that even if repealed won't be instituted again later?
Sorry, this doesn't pass my "we want to screw you harder" meter.
If this includes credit card transactions (credit card companies usually transfer monies directly into banking accounts) ....it would be a killer for small businesses that have hundreds or even thousands of credit card transactions in a month.
IMHO, there is only one answer to paying down the debt and balancing the budget: cut spending and raise taxes. Not that I like the idea, both are probably necessary. The challenge being getting leaders of both parties to be honest about that and to have the courage to do something about it. While I am skeptical of anything coming out of Washington, this 1% transaction tax, and the associated elimination of the income tax is at least worth looking at.