The ATM Tax

So, you put your money in the bank and when you need some of it back you run to an ATM to get some cash.  If the Democrats have their way 1% of what you withdraw will be paid to the Federal Government:

One idea for raising taxes to pay down the debt is the bill introduced this February by Rep. Chaka Fattah (D-Pa.). His “Debt Free America Act” (H.R. 4646) would impose a 1 percent “transaction tax” on every financial transaction — whether paid by cash, credit card or any form of financial transfer, the only exception being transactions involving the purchase or sale of stock. Theoretically, everyone would pay one cent on the dollar for every such transaction in America every day — whether $3 million on a $300 million business acquisition, $300 on the purchase of a $30,000 car, or $5 on a $500 ATM withdrawal.

The name of the bill, "Debt Free America Act" is a lie on its face. America will never be debt free as long as Democrat politicians continue to exist. This is nothing but a money grab to justify more and more spending. The debt will never be retired because the politicians don't want to retire it. As long as massive debt exists they can justify higher taxes.

If politicians like Fattah and Lanny Davis, who wrote the linked article, were really serious about debt reduction they'd be proposing spending cuts that could result in surpluses. There are no spending cuts in Democrat plans.

If this law was enacted, what would the result actually be?  A massive underground black market for any transactions that can be hidden from federal view.  Cash won't go into banks, wherever possibly purchases will be cash only between parties that have no intent in reporting them, and a great deal of economic activity will go underground.

As usual, Democrats believe they can just pass laws like this and everyone will comply.  Not so.  People will find a way around these laws wherever they can and the results of these laws will never match the numbers used to sell them.

And, of course, two things are absolutely certain:  Once enacted this tax would never go away, even if my some miracle it paid down the debt, and within a couple of years it would be increased because Congress can't stop spending.  One percent would become 2% which eventually becomes 3%....ad nauseum.  Congress is addicted to spending and not amount of revenue will ever satisfy the beast.

Want to reduce debt and save the economy?  Cut taxes and stop spending.  It works every time it's tried.