Rural and Urban America Transformed by Tax Reform; Jobs, Community and Business Development, Key to Fattah's Tax Reform Plan

4/27/2004

From: Office of Rep. Chaka Fattah (D-Pa.), 202-225-4001 or 215-387-6404, Web site: http://www.house.gov/fattah

WASHINGTON, April 27 --Forgotten parts of America, rural and urban areas, move front and center as part of a bold new tax reform bill.

The "Transform America Transaction Fee Act of 2004" calls for a federal revenue sharing program to support community and economic development investments in high poverty rural and urban areas at a level equal to 10 percent of current Federal tax revenues, or approximately $200 billion.

"These dollars would be used to break the cycle of poverty for millions of Americans," said Rep. Fattah (D-Pa.). "While promoting revitalization of economically distressed areas it provides hope and opportunity to individuals and demonstrates how our communities can be restored and revitalized."

In addition to assistance to rural and urban areas, the bill, calls for a study on the elimination of all federal taxes on individuals and corporations and replacing them with a revenue generating system based on transaction fees.

Analysis from the Congressional Research Service finds that monies generated from the transaction fee would exceed current revenues from federal taxes. The additional funds would be allocated to transform America.

For a comprehensive list of the documents that helped frame the "Transform America Transaction Fee Act of 2004," visit the "tax corner" at http://www.house.gov/fattah.