(a) In General- Chapter 1 of the Internal Revenue Code of 1986 is amended by striking the following provisions:
(1) Part I of subchapter A.
(2) Subpart A of part IV of subchapter A.
(3) Sections 31, 32, 35, 36, and 36A.
(b) Repeal of Alternative Minimum Tax for Individuals- Section 55 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
`(f) Exemption for Noncorporate Taxpayers- The tentative minimum tax for any taxpayer other than a corporation shall be zero.'.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2017.
SEC. 7. PRIORITIZATION FOR REPAYMENT OF NATIONAL DEBT.
To take into account the national security concerns of the United States, the Secretary of the Treasury, in consultation with the Secretary of State, shall prioritize the repayment of the national debt and shall take into account circumstances in which the Secretary of the Treasury determines the early repayment of outstanding debt is detrimental to the fiscal stability of the United States.
SEC. 8. STUDY AND REPORT.
(a) Study- The Secretary of the Treasury, in consultation with the Chairman of the Federal Reserve, shall--
(1) analyze methods to prevent and relieve any distortions among economic sectors created by the implementation of this Act,
(2) make recommendations regarding the application of the transaction fee established under this Act to barter transactions which do not involve a payment instrument,
(3) assess the transaction fee established under this Act as a tool of Federal fiscal policy, including an impact analysis on the elimination or retention of existing tax expenditures, incentives, penalties, and credits, including--
(A) the earned income credit,
(B) the alternative minimum tax,
(C) the child tax credit, and
(D) the deduction for mortgage interest,
(4) analyze the extent to which the transaction fee could offset the cost to the Federal Government of increasing discretionary and mandatory spending, particularly expenditures related to education, defense, Social Security, Medicare, and Medicaid,
(5) make recommendations with respect to the Internal Revenue Service, which--
(A) assume the transition and grandfathering of all existing personnel of the Internal Revenue Service,
(B) identify the elements of the current Internal Revenue Service needed to administer the transaction fee, and
(C) examine the feasibility of modifying the overall mission and jurisdiction of the Internal Revenue Service from one focused on tax law application to one focused on uncovering waste, fraud, and abuse throughout the Federal Government, and
(6) make determinations and recommendations for methods of phasing out the income tax on individuals before its repeal under section 4 in a manner which is consistent with the purposes described in section 2(b)(3).
(b) Report- The Secretary of the Treasury shall, not later than 1 year after the date of the enactment of this Act, submit to Congress a written report containing the results, determinations, and recommendations of the Secretary under subsection (a).
Originally posted by Macdon
What happens if I transfer $1,000,000 of my hard earned cash to another bank? Do I pay $10,000 in tax to do so? If so, then NO WAY!!! Keep you transaction tax and all other taxes to yourselves.
What happens when I buy $1,000,000 of shares to make 5% profit, which amounts to $50,000 dollars. Do I pay tax twice at 1% - one for the buy and one for the sell or making it $20,500 or do I get taxed on the $50,000 profit for $500?
Originally posted by Kailassa
Of course if you are wealthy, you'll do what the wealthy do; employ an expensive accountant who can help you fudge the books and get out of such taxes altogether.
Originally posted by Ahabstar
exemptions for food, medications, medical aid and legal aid.
We do not have a VAT, although some have been proposed in 'trial balloons', but didn't go anywhere.
Originally posted by davespanners
Does the USA not have some kind of VAT already then? It's a genuine question as I genuinely don't know.
The UK has VAT at 17.5% (not 1% as the OP proposes) and quite high income tax too and it doesn't seem to have helped us avoid having a huge national debt
edit on 16-9-2010 by davespanners because: (no reason given)
Originally posted by whatukno
Think about it for a moment, 1% added onto every transaction, from restaurant purchases to buying your next car. But no longer would you have an income tax taken from your paycheck and in 7 years there would be no national debt.
Originally posted by Macdon
I don't owe any money to anyone and I don't see why I should be taxed to pay off other people's debt to banksters. Taxation is an old favourite trick of the communists KEEP IT AND SUCK ON IT!