As millions rush to file their income tax returns Congressman Chaka Fattah (D-PA) says there is a better way. He has introduced a plan that calls for the elimination of all income and federal taxes on individuals and corporations.
The bill, H.R. 1703, The Comprehensive Transform America Transaction Fee Act of 2009, requires the Treasury to conduct a comprehensive study on the Fattah plan to eliminate all federal taxes on individuals and corporations and replace the tax code with a fee on transactions over $500. Experts agree that implementing a transaction fee would not only meet current revenue goals but conceivably provide needed additional income to meet some of the nation's growing economical challenges.
Fattah said, "The additional revenue generated from my tax plan would serve to eliminate the current national debt which grows every day by $4 billion and is now at $11 trillion."
Additionally, the plan would provide resources to accelerate economic development in urban and rural areas, provide for universal health care, and establish an equitable school finance system.
Most financial and tax experts agree that the current tax code must be changed. Larry Summers, current Director of the Obama National Economic Council said last week, "I do think there's a variety of kinds of strains in the tax code...it suggests that the tax code will have to get visited at some point, preferably sooner rather than later."
"Professionals who have examined my transaction fee proposal estimate that taxpayers would pay less than one percent of their income in taxes," said Fattah. "It would be a savings in both money and time."
Americans spend 3.5 billion hours and over $92 billion annually complying with a tax code that is over 67,000 pages.
"Eliminating all federal taxes means every day will be tax freedom day, and for taxpayers that means a time of celebration," said Fattah.