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Old 10 July 2010, 03:03 AM
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snopes snopes is offline
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Icon605 1% tax
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Old 10 July 2010, 03:03 AM
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snopes snopes is offline
Join Date: 18 February 2000
Location: California
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Comment: I have heard discussion and seen on emails the fear that the
Obama administration is going to pass a 'banking tax' that will take 1% of
each deposit and 1% of every transaction out of a bank account. I have
seen nothing of it in my normal sources, do you have any knowledge as to
the reality of the data?
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Old 11 July 2010, 11:25 PM
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Not_Done_Living Not_Done_Living is offline
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The G20 group was discussing a "Bank Tax" which would be collected by banks and used to fund future bailouts.. but apparently Canada (one of the countries NOT screwed by our Banks) refused to use taxpayers an insurance policy for banks with multi billion dollar profits, and we convinced the other countries to not implement the tax.. (apparently thats how it went anyway)..
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Old 13 July 2010, 03:49 AM
Dr. Dave Dr. Dave is offline
Join Date: 28 June 2005
Location: Montgomery County, MD
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Originally Posted by snopes View Post
Both the person in front of me and
the cashier did NOT refute the information...
I have no idea about the bank thing, but is this the new (or maybe the old) standard for fact checking- someone puts it out there, and if the random person next to you and the cashier do not refute it, it's good.

although I'm thinking it was the cashier that might have brought up that rumor.
Whoops, make that just the random person next to you.
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Old 16 July 2010, 08:11 PM
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snopes snopes is offline
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Comment: Obama administration is proposing a 1% transaction tax on all
transactions (deposits, withdrawals, checks, etc) at all banking
institutions. Supposedly this has been attached to a bill due on the
House floor this fall.
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Old 27 July 2010, 07:34 PM
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It appears these comments are referring to bill HR 4646 introduced by Rep. Chaka Fattah (D-Pa.). But it would be any transaction, not just debit card:

Debt Free America Act - States as purposes of this Act the raising of sufficient revenue from a fee on transactions to eliminate the national debt within seven years and the phasing out of the individual income tax. Amends the Internal Revenue Code to impose a 1% fee, offset by a corresponding nonrefundable income tax credit, on transactions that use a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument. Defines "transaction" to include retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.
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Old 27 July 2010, 07:46 PM
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AnglRdr AnglRdr is offline
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A bill with no cosponsors sent to committee 5 months ago. It's as good as dead.

Not to mention the fact that it is insane.
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Old 27 July 2010, 07:54 PM
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Towknie Towknie is offline
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That is a really interesting idea. It would probably result in no net change for the middle class, but a bigger net tax burden on both the very poor and the very rich. The very rich because the nonrefundable status of the tax credit means that purchases beyond the regular income tax burden will increase the amount they pay, and the very poor because they would have no regular income tax burden in the first place. The middle would probably not spend enough to completely erase their income tax burden, but would dance in the streets with the big refunds they would get in the spring.

Very slick. Everybody pays the same or more, but everybody feels like they're stickin' it to someone else.
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Old 28 July 2010, 07:55 PM
dewey dewey is offline
Join Date: 12 October 2000
Location: Massachusetts
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Speaking as someone who has done data processing for banks for 25 years I can not imagine how this could be done. It is a logistical nightmare. It is difficult enough to deduct 1% from every transaction and post that change onto customers' accounts so that they can track the deductions. But would the bank be required to keep track of every customer's account so they could send them tax year statements. And would the end of year statements have to list every transaction? And would this information be provided to the government in the same manner that mortgage interest is done so they can verify tax returns. This means that the IRS would have to store and be able to access an incredible amount of data.

On the other hand, this is just the type of crazy banking regulation that the government likes to pass without any idea of how financial institutions will be able to implement them.

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