Proposed 1% Transaction Tax De-Bunked Posted by AVCU on 12:42 PM

An email rumor is spreading widely that the Obama Administration is trying to sneak a 1% tax on all bank and credit union financial transactions through Congress before it adjourns this year. There actually is a proposal to do so, H.R. 4646, the Debt-Free America Act, introduced by Representative Chaka Fattah (D-PA). The bill proposes to pay down the federal deficit by slapping a 1% tax on all consumer financial transactions, including those done by plastic card, ATM withdrawals, purchases, etc. Problem is, the email rumor fails to mention that the bill proposes the 1% tax while repealing individual income tax, has no co-sponsors, is not supported by the Obama Administration, and has no real chance of being considered by Congress at all.


There are many sources for reference on this bill, but among the most interesting is at Snopes.com