It Must Be True - I Read It On Facebook!

It Must Be True - I Read It On Facebook!


“Numerous widely circulated emails claim the Obama White House is supporting a plan to impose a 1 percent tax on every transaction you make - from bank deposits and withdrawals to purchases at the grocery store.”


By Dell Hill

Far, far too many people believe every word they see posted on social media outlets, such as Facebook.  It’s the new SPAM venue and right now someone is buying the latest myth lock, stock and barrel.  When someone posts yet another wild-eyed myth, link them here.

“As if those mysterious ATM fees aren't annoying enough.

Numerous widely circulated emails claim the Obama White House is supporting a plan to impose a 1 percent tax on every transaction you make - from bank deposits and withdrawals to purchases at the grocery store.

"President Obama's finance team is recommending a transaction tax," one such viral email reads.  "His plan is to sneak it in after the November election to keep it under the radar.  This is a 1% tax on all transaction at any financial institution i.e. Banks, Credit Unions, extra."

See more: 5 Wackiest Myths About Obama

"Any deposit you make, or move around within your account, i.e. transfer to, will have a 1% tax charged," the email continues.

"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."

Is there any substance to this transaction tax?

Well, yes and no.  But mostly no.

There have, in fact, been several bills before Congress that would impose such a transaction tax.  But all but one has died in committee.

Bill Would Impose Transaction Tax

A Democratic congressman from Pennsylvania, U.S. Rep. Chaka Fattah, has tried without success to get such a transaction tax passed numerous times in recent years.

He's introduced such legislation in 2004, 2005, 2007 and 2010.

Fattah said his "Debt Free America" proposal would generate revenue that could be used to reduce the growing national debt.
"Alarmingly, there is near unanimity in the consensus of economists, analysts, and policymakers that the U.S. debt is accumulating at an unsustainable rate," Fattah said in announcing his proposal in 2010.

"Similar to the mortgage meltdown that precipitated the worst financial crisis since the Great Depression, the easy money that is financing the exploding federal deficit will soon come to an end," Fattah said.

To offset the impact of the transaction tax, Fattah's legislation - H.R. 4646 - would give a 1 percent tax credit to families that earn less than $250,000.

According to Fattah, the collection of a transaction tax would pay off the national debt - and replace the federal income tax (a fact that the viral emails fail to mention).

The key question is: Does Obama - or anyone on his so-called "finance team" - support such an idea?

If they do, they're not saying.

Which isn't a good sign for Fattah or his transaction tax.”

Dell’s Bottom Line:  From the Congressional Record:  (.pdf file)“Mr. FATTAH introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, Rules, and Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.”

In plain English, Mr. Fattah’s proposal will never see the light of day in a House of Representatives controlled by Republicans.  Period.  End of discussion.

One final “insider” note from Dell:  Every politician serving at every level of government introduces several pieces of legislation during every session just so they can tell the folks back home “I tried”.  

What they’re actually doing is self-promotion and an incredible waste of time and taxpayer’s money.  Submitting legislation that one knows has absolutely no chance of consideration, much less passage, should be a criminal offense.