U.S. Bankruptcy Tax Dodge - A Huge Income Tax Bill Hit!

U.S. Bankruptcy Tax Dodge - 

A Huge Taxpayer Hit for Bailout!

Rep Chaka Fattah, D - PA, introduced on 2/23/2010,  a 1% transaction tax.  This is a 1% tax on all transaction at any financial institution, i.e., Banks, Credit Unions, Brokerages, 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 tax burden is backed and promoted from the same President Obama and Democrat Party who promised that if you make under $250,000 per year, you will not see one penny of new tax. 

Go to the Library of Congress THOMAS website, the source for federal legislative information, and click on Debt Free America Act  and print out and read all 15 pages of this bill which has been given the "Short Title" of "Debt Free America Act." It is the most socialistic thing you will ever read. 

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—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. (A VAT Tax)*

*Word of the Day:  "Value Added Tax" - Federally Taxed at EVERY level of production, i.e., farmer, wholesaler, broker, grocery store. (Federal taxed 4 times before State & Local taxes is levied) How about 1% VAT Taxes on payments for doctor visits, dental care, auto repair, movie tickets, etc.?

(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. 

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 (Chump Change you can count on) 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 Date Nov 24 2008  Feb 24, 2010 •HR 4646
(1) $100,000 individual return ($250,000 in the case of a joint return),1 bears to
(2) $10,000 ($20,000 in the case of a joint return)

YEA! ...The rich individuals making over $100K and joint filers over $250K are so hosed!  

BOO! ...The middle income making under $100K filers also get hosed too! (The Tax Credit doesn't cover all the 1% Tax cost)

 

Proposed Bill:  H.R.4646
  Title:  Debt Free America Act 

Last Major Action: 2/23/2010, Referred to House committee.
 
Status: Referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, Rules, and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.   

Outcome: Many speculate doubt in its passage since this is a single sponsor bill, but you can never be too sure with Obama lurking and circumnavigating bills and appointees around both houses.

  

 ~CONTACT YOUR CONGRESSMAN~

THIS BILL MUST NEVER SEE

THE LIGHT OF DAY FOR ANY VOTE!

~  REMEMBER... 

VOTE 2012!  ~