By Randy R Cox
The internet wires whisper a one percent transaction tax solution. Before it has had a chance to even be considered, it has been carried by broomstick from computer to computer replete with ready made conclusions as to how it is a horrible idea. No personal consideration is needed for the one percent tax solution.
The usual gossips have sent out their fabricated emails bearing false witness against the President and Congress. Now, I’m no fan of either, but I have been supporting a transaction tax to replace the income tax for 30 years. The gossips falsely warn that Obama and Nancy Pelosi are trying to secretly put though a one percent transaction tax that will apply to everything and make you poor. If the bankers can get people to associate this tax with unpopular politicians they can keep getting richer while the working class gets poorer. Obama and Pelosi live in the same back pocket that Gingich and most of the other republicans live in.
As usual, they get it completely wrong. The continued ignorance of the uninformed masses keep intelligent people from finding solutions to the massive debt that these same people have supported through the years—lower taxes AND increased spending. This one percent transaction tax solution is so scary to the bankers that they want to poison the
grass roots from which it springs.
There is a one percent type solution offered but unfortunately the only attention it is getting is from the gossips and slander mongers! Read about it from a reliable source: http://www.snopes.com/politics/taxes/debtfree.asp
The closest thing to a one percent tax solution comes from Rep. Chaka Fattah (D-Pa). He has something he calls The Debt Free America Act. (H.R. 4646) http://thomas.loc.gov/cgi-b
The way I understand it, this tax would replace all federal income taxes and all the book keeping nightmares that go with it. Individuals earning $125,000 or less would pay the tax but get a credit equal to 1% of their income.
It would impose taxes on all transactions except the buying and selling of stock. Retail and Wholesale transactions would be taxed. Tangible and Intangible financial transactions would be taxed. You move or spend the money, you owe the tax.
With all the politicians in the bankers pockets, this has zero chance of passing. With the gossips mongers letting the exploiters frame the discussion and warning all about something they don’t understand, it will continue to be ignored.
All I’ll say about this is that people who do real work and earn real dollars put their money in Federal Reserve Member banks.
When a capitalist deposits a cash dollar, not a borrowed dollar, it is a real dollar representing a dollars worth of work or investment profit. The bank can keep a dime on reserve and loan out 90 cents, except when that money is re-deposited they can again loan it out. They keep loaning the dollar until it becomes $10 in debt. This is with a 10% reserve. The reserve amounts vary from 8 to 14%. In case of emergency, the reserve can be reset to 100%.
This is where all the money that we loan third world countries comes from. When a capitalist earns a dollar it has a current purchase power of a dollar. The bank creates 10 dollars and spews them into the market via the least discrete spenders in the world.
When you get ready to spend your dollar, there are 10 other dollars in the hands of people who did not earn their dollars competing to buy what you want to buy. Come easy, go easy, they are often willing to pay more than you are willing to pay. The price of the item goes up; the value of your hard earned dollar goes down.
I don’t really know the structure of Fattah’s bill, it is way early in the discussion of these types of things. For my part of the discussion, I just want to make sure that all banks have to pay this tax as they create the phony money that destroys the value of my savings.
If I deposit a real dollar in the bank, I would have to pay 1%. I can live with that if it is the only tax I have to pay, another when I write a check for that money. The nice part is that the bank would have to pay 10 cents on that dollar as they multiply it by 10 as they do. Also, the people who borrow the phoney money and quick spend it against me later will have to pay an additional 10 cents. That’s 21 cents of tax revenue from my dollar, only 1 cent comes from me.
Before you repeat the propoganda that flows through the email, think about the repercussions. After being properly vetted, this could be the solution we are looking for so we can get back to work making the money that keeps our country going.