President Obama's finance team is recommending a transaction tax. His plan is to sneak it in after the November election to keep it under the radar. This is a 1% tax on all transactions at any financial institution. i.e. Banks, Credit Unions, 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 is from the man who promised that if you make under $250,000 per year, you will not see one penny of new tax.
#1
Hmm. If true, the Zero regime apparently wants to force a repeat of the 1933 run on the banks. It's difficult (though not impossible) to believe even Dem voters wouldn't notice the blatant robbery. And this on top of the upcoming expiration of the Bush tax cuts.
#3
Besoeker, I don't think that's an accurate description of the bill. There is nothing about taxing a person's income, or taxing movements between his accounts. The reason for taxing atm withdrawls is the resulting cash would be used to buy something.
This is like a sales tax, except it's levied on all transactions, not just the final retail transaction.
Also, there is a 1% non-refundable credit for people earning less than 100K. Because this is non-refundable, the proposed transfer fee is highly regressive, unlike Fair Tax or Flat Tax.
Stock and option transfers are excluded. HFT continues! Mustn't hobble Goldman Sachs and the PPC....
The proceeds go into a trust fund to pay down the debt. The intent is to eliminate the income tax once the debt is paid off.
Posted by: Water Modem ||
08/30/2010 1:48 Comments ||
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#5
The proceeds go into a trust fund to pay down the debt. The intent is to eliminate the income tax once the debt is paid off.
And my gasoline tax is supposed to pay to pave the roads.
And my property tax is supposed to pay for my schools.
And various "funds" aren't fungible.
You watch. The pols will figure that since this "fund" would be paying down the debt that they can ease up on other austerity measures and go right back to business as usual. Then, of course, some pol will come up with the bright idea to use this money for Social Security come the next election cycle.
#8
Use your ATM Card and Buy:
Gas - $40.00 x .01 = .40
Groceries - $300.00 x .01 = $3.00
Suit/Clothes, mens - $400.00 x .01 = $4.00
----
Use a Check and Buy:
Home Appliance - $1000.00 x .01 = $10.00
Automobile - $20,000 x .01 = $200.00
House - $200,000 x .01 = $2000.00
---
Withdrawal from your retirement account monthly:
$2000.00 = $20.00 x 12 = $240.00 annually.
Pay your mortgage:
$1500.00 = $15.00 x 12 = $180.00 annually
Pay your property tax:
$3500.00 = $35.00 annually
Write the IRS a check to pay your taxes:
$3000.00 = $30.00
#9
For the average person, 1% becomes 2% very quickly.
Your employer pays you -- let's say your net is $4,000 a month.
Direct deposit -- costs you $40.
Now you write checks to cover the mortgage, etc. Every check costs 1% of the amount. Write $4,000 worth of checks to pay the bills, and that's another $40.
You were just taxed $80, or 2% of your take-home. They get you coming and going.
Posted by: Steve White ||
08/30/2010 9:22 Comments ||
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#10
First step toward VAT. It's coming.
Related to this, albeit vastly more significant, has been the transfer-in-plain-view of trillions of dollars from savers to the banksters, who are not lending any of the trillions back to businesses or consumers.
The banksters now have enormous spreads with which to bolster their balance sheets and profit margins. And the rest of us have mass unemployment, absurdly high loan rates and absurdly low savings rates, and a joke of an insider-manipulated stock market.
The spread between what the banksters receive and what they pay reflects a deliberate Obama admin policy. Feature, not bug. No fix in sight.
#11
Well, first there was the trillion-dollar Stimulus plan and unemployment continues to rise. Then there was Obamacare that resulted in the skyrocketing cost of Health Insurance premiums. And, of course, there was the Financial overhaul legislation that didn’t address Fannie or Freddie and actually institutionalized “Too big to fail.” Oh, and don’t forget the Consumer protection law that has driven up interest rates and dried up credit for the average consumer. But I’m sure there won’t be any unintended consequences with this one.
#12
Well, if they try this the cash only business will boom.
More and more I get the feeling that the dhimocrats are in full panic mode and they are pushing everything and going for broke since they know they will be a minority for a while.
#13
KBK's comment is naive. The bill leaves loopholes large enough to fly the Hindenburg through. Language as loose as this leave sit wide open to tax every single financial transaction, including account transfers and deposits.
We have a supreme court that has decided that it is perfectly constitutional to force the sale of private property to another private entity, that growing feedstocks for your own use is interstate commerce, federal courts that have decided you don't have a right to privacy in your own yard unless it is fenced. The IRS says forgiven debt is income. How much proof do you need that the bill will provide the cover for the government to do whatever it wants with any and transactions/ The last I looked a transfer from my bank account to pay a credit card bill was a transaction.
The bill defines "transaction" to include retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
#14
I don't believe the transaction fee covers income receipt or tax payments:
(2) TRANSACTION- The term `transaction' includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
It's like a VAT in that it covers internal transactions, but it's on the whole amount, not just the value added.
Home Depot buys a drill from Ryobi for $40: tax is forty cents. You buy the drill from Home Depot for $140, tax is $1.40. This would have some interesting ramifications when companies try to structure themselves to avoid transactions between subsidiaries. Seems simpler than a VAT, but probably less workable in practice.
Like a VAT, this throws a lot of sand into the gears of commerce, most of it unseen by the consumer. But the consumer will surely feel the effect.
One more program focused on taxing instead of spending reduction.
I can't imagine why this isn't refundible. The 40% who pay no income taxes get nothing back.
My link to the bill's text turned out to be a temporary cgi call. Try this.
#15
Like Unlike a VAT, this throws a lot of sand into the gears of commerce, most of it unseen by the consumer. But the consumer will surely feel the effect.
VAT has minimal impact on business and is cheap and easy to administer.
When Canada introduced a VAT (called a GST) 90% of businesses that were exempt, voluntarily collected and paid the tax.
#16
We'll all have to go back to stuffing our cash under the mattress. How long do you think it will be before banks notice that people aren't using their ATM cards or writing checks anymore? They've got you though. You'll still have to have a checking account so you can get your paycheck cashed. But then you just stuff all the cash in your pocket. It might make things simpler. You won't have to worry about balancing your checking account. You'll know you can keep spending as long as there is money in your pocket. But when the money in your pocket starts running low then you slow the spending. Have to carry a pistol to keep the bandits at bay.
#17
This little 1% tax will push a lot of people over to a cash basis, then come the 10% contractor "cash discounts" (i.e.: it goes unreported and therefore completely untaxed) and it won't be long before that 1% ends up saving me more money than it costs me.
#20
Hmmm... sounds a lot like a previous act that involved requiring stamps on all official documents, and charged a relatively high fee for that stamps -- when you could even get them.
Posted by: Rob Crawford ||
08/30/2010 13:10 Comments ||
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#21
Hmm. Introduced by a minority-majority district congresscritter, absolutely no co-sponsors. I'm guessing this is dead on arrival, unless it gets adopted by opinion-leaders.
Call it the UnFair Tax.
Posted by: Mitch H. ||
08/30/2010 14:48 Comments ||
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#22
So I gots a question, how does effect companies who's business model is based on TRANSACTIONS? Western Union for the obvious example, but also there are quite a few companies that do hundreds of thousands to millions of dollars everyday between banks, other companies, and even individuals. Does this mean they got to pay a transaction fee too? Does this mean banks have to collect a transaction fee everytime they conduct a wire transfer between companies? I can't imagine any organization thats trying to do a million dollar plus loan agreeing to getting 1% of it taxed out by the government.
#23
I'm not necessarily opposed to a VAT-- in view of all the other options available to us, it's probably the least bad. But it has to be sold transparently to the people, as in, "Yes, this $ucks, but so does every other option, and it would be foolish to gut spending or raise income or corporate taxes right now."
#27
If VAT had no impact on business, then they could quite happily collect the VAT privately at a massive profit through higher customer charges.
My VAT (GST) return used to take me about 20 minutes to do, and that was manually calculating it.
Add up the VAT you paid, subtract it from the VAT you collected, remit the balance.
No need for accountants, tax advisers or any other high costs associated with the usual government tax complexity.
VAT costs the consumer far less than any other revenue equivalent tax, precisely because it is so cheap to administer.
Otherwise, taxing financial transactions is idiotic. A throwback to the 19th century.
What is happening is that governments in the USA and elsewhere are starting to panic about falling tax revenues and are dreaming up new taxes. Often from the, lets say, economically challeged.
#1
Rasmussen has Angle up by 2 points, but if things stay this tight Dingy Harry's likely to squeak by & win. Nevada's Nonrespiratory-American community hasn't really been heard from yet - and as we all know they tend to go 100% Quislingcrat.
Posted by: Ricky bin Ricardo (Abu Babaloo) ||
08/30/2010 12:39 Comments ||
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#2
Nevadans, please take out the garbage. It has been stinking for some time now.
#4
Why are so many kooks and mediocrities attracted to our politics? What is it that turns off so many normal people of high intelligence who ahve made careers in the world beyond law and government?
How can we attract more doctors, small businessmen, military officers, and other successful professionals who've had to take executive-level ownership of, and solve, real problems arising in the real world?
#5
Can someone please tell me why there are reservations about Angle? I don't know her that well. Why is the race so close? Reid has been involved in shady land deals. He changes his views depending upon which way the political wind is blowing. He insults fellow Americans. There is an arrogance about him until election time.
#6
I don't get it either. Angle is awesome. Cleared the Nevada Supreme Court of lefty moonbats. Never met an earmark she liked. Great stuff. Seen some people complain that she talks about God, but so what? My guess is that she actually believes in Him.
#7
Media controls the message. The media is the swamp that needs to be drained. ... or burned off, whatever works.
Posted by: Rex Mundi ||
08/30/2010 22:36 Comments ||
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#8
How can we attract more doctors, small businessmen, military officers, and other successful professionals who've had to take executive-level ownership of, and solve, real problems arising in the real world?
Gov Jan is still standing up for her state. On Friday, she demanded that a reference to the state's new immigration law be deleted from a State Department report to that useless UN Human Rights Commission. A Commission that includes or has included countries with strong human rights initiatives, especially for women, like Saudi Arabia, Algeria, Egypt, China, and even Cuba.
The U.S. included its legal challenge to the law on a list of ways the federal government is protecting human rights.
Gov Jan, in her letter to Hillary, stated that it is "downright offensive" that a state law would be included in the report, which was drafted as part of a UN review of human rights in all member nations every four years.
"The idea of our own American government submitting the duly enacted laws of a state of the United States to 'review' by the United Nations is internationalism run amok and unconstitutional," Brewer wrote.
(Xinhua) -- U.S. President Barack Obama said Sunday in New Orleans his administration is working to restore the city, five years after the devastating Hurricane Katrina made landfall in Louisiana, and will fight "until the job is done."
In a speech delivered at Xavier University to mark the hurricane that left over 1,800 people dead and billions of dollars of damage, Obama said the administration is working "to make sure that the federal government was a partner -- instead of an obstacle -- to the recovery of the Gulf Coast."
He said the federal government is working to rebuild the region, tackle corruption and inefficiency, help New Orleans recruit doctors and nurses, as well as help schools and combat crimes.
"Today, New Orleans is one of the fastest growing cities in America, with a big surge in new small businesses," he said.
Obama also said the administration is focusing on preparing for future natural disasters, as the largest civil works project in American history is underway to build a fortified levee system.
He also talked about the efforts to combat the BP Gulf oil spill. "We are going to stand with you until the oil is cleaned up, the environment is restored, polluters are held accountable, communities are made whole, and this region is back on its feet," Obama said.
New Orleans is the epicenter of the damages caused by Katrina. The city is Obama's first stop as he concludes a summer holiday at Martha's Vineyard, Ma.
Posted by: Fred ||
08/30/2010 00:00 ||
Comments ||
Link ||
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#1
New Orleans is the epicenter of the many self-inflicted damages caused exacerbated by Katrina.
#2
ION CHINESE MIL FORUM > [New World #2] CHINA'S ECONOMY [already] GREATER THAN THE USA'S ACCORDING TO MLADEN BOREV [noted Bulgarian Econ-Pol Affairs Analyst]???
* SAME > [NYT] INSIDE ASIA: CHINA'S RISE TO TOP LOOKS UNSTOPPABLE [China due for a new "Golden Period" of prosperity + influence].
* SAME > CHINA DEPLOYS 11000 TROOPS IN OCCUPIED KASHMIR, + [Bharat Rakshak] BR_MILITARY TERMINATES LINK WITH CHINA.
#3
The 9th Ward is the "by the textbook" image of the United States in Obama's eyes. Yet -- we don't utilize "lessons learned" from that society that became incapable of helping one's self, even in a time of great danger.
#5
I heard the greatest line of all on a 911 call....Sir we can't get to you.....we knew this was going to happen that's why this was a MANDATORY EVACUATION!!!
#7
...it all depends upon whose special interest group is involved. Two standards. Tell others to move to higher ground because they're different from the people in New Orleans in what manner?
A multi-volume chronology and reference guide set detailing three years of the Mexican Drug War between 2010 and 2012.
Rantburg.com and borderlandbeat.com correspondent and author Chris Covert presents his first non-fiction work detailing
the drug and gang related violence in Mexico.
Chris gives us Mexican press dispatches of drug and gang war violence
over three years, presented in a multi volume set intended to chronicle the death, violence and mayhem which has
dominated Mexico for six years.
Rantburg was assembled from recycled algorithms in the United States of America. No
trees were destroyed in the production of this weblog. We did hurt some, though. Sorry.
(Xinhua) -- U.S. President Barack Obama said Sunday in New Orleans his administration is working to restore the city, five years after the devastating Hurricane Katrina made landfall in Louisiana, and will fight "until the job is done."
