Local Stories, Events
Ref. : Civic Events
Ref. : Arts & Education Events
Ref. : Public Service Notices
Books, Films, Arts & Education
Ref. : Letters to the editor
Health Care & Environment
01.17 As Planet Heats Further, Even Davos Elite Warns Humanity Is 'Sleepwalking Into Catastrophe' [Intelligent government is desperately needed]
01.17 Could a Green New Deal Save Civilization? [Intelligent government is desperately needed]
01.16 Immediate fossil fuel phaseout could arrest climate change – study [Intelligent government is desperately needed]
01.15 Solar Farms Shine a Ray of Hope on Bees and Butterflies [Wonderful!]
01.14 V.A. Seeks to Redirect Billions of Dollars Into Private Care [The most public and efficient healthcare in America has been demonized and will be destroyed rather than improved, raising total per-capita costs]
01.14 Why thousands of Los Angeles teachers are going on strike [Well at least we got a big tax-cut for the super-rich, that was the most important thing.]
01.08 Monarch butterfly numbers plummet 86 percent in California [0:58 video; Do You Care?]
01.08 Carbon emissions up as Trump agenda rolls back climate change work [Making America Less Great Again]
News Media Matters
US Politics, Policy & 'Culture'
01.19 Republicans’ lack of alarm over the shutdown reveals a disturbing truth [Sociopaths have little or no conscience, empathy or morality...]
01.19 Arizona: Four women convicted after leaving food and water in desert for migrants [morality is against the law]
01.18 With Mattis Gone, Trump Is Already Sowing More Global Chaos [Trump plays General—what could go wrong...]
01.18 Impeach Donald Trump
01.18 President Trump Directed His Attorney Michael Cohen To Lie To Congress About The Moscow Tower Project [An impeachable offense]
01.18 10 Things We All Lose If Bernie Chooses Not to Run in 2020 [Intelligent government is desperately needed]
01.17 Alexandria Ocasio-Cortez lambasts US government shutdown in first House speech [3:27 video; Intelligent government is desperately needed]
Economics, Crony Capitalism
01.17 Trump's economy is great for billionaires, not for working people [chock-full of pesky facts that government and media ignore and distort]
International & Futurism
01.17 White people assume niceness is the answer to racial inequality. It's not [More equality requires us to fix ignored and distorted problems]
01.16 Global tensions holding back climate change fight, says WEF [Consistently stupid and harmful policies... Seeing a pattern?]
REMEMBER TO KEEP ALL YOUR RECEIPTS!
Congressional Fleecing the Public Legislation
Like a Steve Forbes' idea, the non-rich would pay a higher percentage of income than the rich.
Tuesday, 26 October 2010
This 1% national sales tax bill will disproportionately fleece middle and lower income Americans, because it exempts tax on "extra-income" of the rich who can afford to save or financially invest.
On February 23, HR 4646: Debt Free America Act was introduced "To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals."
Sponsor Representative Chaka Fattah's (D. PA) same day press release said:
The bill's text says:
The bill aims to raise enough revenue in seven years to begin phasing out the personal income tax, a goal helping big earners more than lesser ones, and provides no help for the millions of low income households paying little or no tax. They, however, will be saddled with an immense burden if this bill passes.
The Bill's Key Section
SEC. 4501. IMPOSITION OF TRANSACTION FEE would impose "on every specified transaction a fee in an amount equal to 1 percent," defined as:
Persons become liable "at the moment (they exercise) control over a piece of property or service, regardless of the payment method."
Fees will be collected by sellers and will be paid to the Treasury Secretary. In case a person doesn't collect and pay as required, "such person shall become liable for the fee not so collected and paid over."
Exclusions include "transactions involving stock (and any options or derivatives with respect to stock) until -
In other words, this bill will fleece middle and lower income Americans through a 1% national sales tax per transaction, exempting the rich from their stock and related financial ones. So imagine its unfair impact, esspecially against low income earners paying little or no federal income tax. They'll face a painful new burden if HR 4646 passes, but so will many middle income earners likely ending up more heavily taxed than now, and when it's clear it'll be too late to matter.
According to factcheck.org, Fattah originated the bill in 2004, called the Transform America Transaction Fee. He tried again in 2005 and 2007. Each attempt failed with no action taken. In late 2009, he introduced a fourth bill, still unaddressed in committee.
As of late October 2010, HR 4646 is stalled, but Fattah and others hope for lame duck session action. Though no administration official suggested it, anything is possible after November 2, given the hysteria for fiscal austerity, including constraining the national debt.
Fattah's bill has no sponsors. It remains in committee. Some reports falsely attribute it to Rep. Peter DeFazio (D. OR) and Senator Tom Harkin (D. IA) for a Senate version. Through a spokesperson, DeFazio said he neither co-sponsored or supports the measure:
In 2009, DeFazio, in fact, introduced HR 1068: Let Wall Street Pay for Wall Street's Bailout Act of 2009. He proposed a 0.25% tax, applied only to securities and commodities transactions, and would become zero once TARP (Troubled Asset Relieft Program) funds were repaid. It allocated $700 billion, a tiny fraction of the trillions recipients got.
Senator Harkin's co-measure was, S. 2927: Wall Street Fair Share Act. Both House and Senate bills stalled in committee.
In the last dozen years alone, various measures have surfaced to replace the income tax. None passed, hopefully the same fate for HR 4646.
According to Lanny Davis (former Clinton White House Counsel), writing in The Hill:
Davis represents elitists. His favored pain distribution affects ordinary people most, to continue shifting more wealth from them to the rich, and make America even more unequal than now.
A Final Comment
In the lame duck session, anything from wheeler-dealer pols is possible. Expect nothing for ordinary people. Whatever passes will cause greater pain for most at the worst time, so watch out.
Among other proposals, up for grabs are Social Security, Medicare, IRAs, and 401ks, the scheme being privatize them, earmark them for Wall Street, turn private pensions into worthless government annuities, and scam Americans out of their futures.
Fattah's 1% national sales tax fits right in, a stealth proposal to steal, largely exempting the rich, of course. America already has its greatest ever wealth disparity. Democrats and Republicans want it greater, a sad testimony to politics, American style, too deeply corrupted to fix.
Listen to Lendman's cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.
Mr. Lendman's stories are republished in the Baltimore Chronicle with permission of the author.
Copyright © 2010 The Baltimore News Network. All rights reserved.
Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.
Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.This story was published on October 26, 2010.