Targeting The Flow of Money To Reduce The Deficit

Big brother needs beer money for the endless summer party and will show no remorse about sticking his hand in little brother's pocket for it. Those that think that it stops here (new tolls and taxes and endless fee increases) are probably spending too much at big brother's party.  Bill HR4646, Debt Free America Act (love the name), proposes a 1% transaction tax on all bank account activity.  This money flow tax would apply to pay and retirement check deposits.  By January 1st 2013, tax refunds will be electronic deposit only; These deposits would be subject to the 1% transaction tax of course.  Who needs cash with this setup?

While a cashless society rules by a universal transaction tax will increase the deficit reduction coffers over the short-term, it's certain to influence long-term capital flows and investment in the United States.  The old saying penny wise but pound foolish best describes this logic.

Headline: States looking to new tolls to pay for highways

WASHINGTON (AP) — Driving onto an Interstate highway? Crossing a bridge on the way into work? Taking a tunnel under a river or bay? Get ready to pay. With Congress unwilling to contemplate an increase in the federal gas tax, motorists are likely to be paying ever more tolls as the government searches for ways to repair and expand the nation's congested highways. Tolling is less efficient and sometimes can seem less fair than the main alternative, gasoline taxes. It can increase traffic on side roads as motorists seek to evade paying. Some tolling authorities — often quasi-governmental agencies operating outside the public eye — have been plagued by mismanagement. And some public-private partnerships to build toll roads have drowned in debt because of too-rosy revenue predictions. Tolls are hardly a perfect solution. But to many states and communities, they're the best option available. "It's very hard in this environment for states to add capacity without charging a toll because they can't afford to do it," said Joshua Schank, president of the Eno Center for Transportation, a Washington think tank. "They're barely able to maintain what they've got, and there is an urgent need for capacity." Some changes already are under way. In addition to the tolls allowed on Interstates in 15 states, mostly in the Northeast and Midwest, the U.S. has agreed to pilot toll projects on Interstate 95 in Virginia and North Carolina and on Interstate 70 in Missouri.

Source: yahoo.com

Headline: Debt Free America Act

To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals.

Source: opencongress.org


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