Congress looks to tax all financial transactions

06/01/2012 10:55

by Blog Administrator


In 2011, Democrats were attempting to solve the debt crisis by introducing a new transactions tax (HR-4646) that penalizes all banking activities with a 1% fee.  Paychecks, retirement checks, pension funds or transactions at any financial institution, credit unions, savings and loans, etc would all be subject to the fee.  Even if funds are hand carried to the bank for deposit, a tax is charged.  Now add the total of all those transactions and deduct 1%.   Even transfers of money within your own bank from one account to another would have a 1% tax charged.  However, in reality this amounts to a 2% tax because there is a fee every time money goes in and/or out of an account.  This includes IRS or state refund checks, essentially any money, cash, check or whatever, no matter where it comes from, would be charged a 1% deposit or withdrawal fee.

The bill was referred to as the 'Debt Free America Act' and imposes a tranaction fee on all Bank deposits and withdrawals.  It first appeared in the 111th Congress sponsored by Rep Fattah, Chaka [D-PA], introduced in Feb. of 2010.  A related bill is Senate Bill S.2965.  The bill was referred to "Committees on the Budget, Rules, and Appropriations, for a period to be subsequently determined by the Speaker."  Presently the bill shows as No. 8 on the House's top ten list
(May 2012) according to the Library of Congress register.

The HR-4646 number has been reassigned in 2012 to innocuous legislation titled: "To suspend temporarily the duty on certain grill brushes."  However, the original Bill is not dead and can easily be resurrected and renumbered, should favorable circumstances present themselves.  The potential for a universal banking transaction fee to be advanced at a later time is real and remains a threat to every American. 

User fees, or access charges are common now because of the Internet.  As its use grows, expect the idea to gain acceptance without continued vigilance, especially if Obamacare is affirmed by the US Supreme Court.  User fees for services are easily hidden within the complex billing codes associated with the new healthcare law and would be invisible to the end user.  Expect your bank to get a cut of any transaction fee.

A user fee is easily attached to the morass of government agency regulations that are stangling the country.  As new regulations come into play, the potential for new fees increase, for example in the trading of pollution credits.  Users would simply pay a fee on every 'credit' traded.  However, the greater danger lies in these proposals becoming riders on other bills as with the stimulus package where a 3.8% federal tax was implemented on home sales.  Likewise buying and selling bonds, Certificates of Deposit and other financial instruments could easily be subject to such fees.

With 16 trillion dollars of debt liability, the World Banks own the US Congress, lock, stock and barrel.  Transaction fee schemes present enormous profit potential for the holders of US debt and their global affilitates.  Expect 'user fees' to be back in a new form.