$7 Trillion National Debt Zeroed Out by Transaction Fee, Says Rep. Fattah

2/19/2004

From: Debra C. Anderson of the Office of Rep. Chaka Fattah (D-Pa.), 202-225-4001 or 202-225-5236, http://www.house.gov/fattah

WASHINGTON, Feb. 19 -- The U.S Treasury Department released new figures putting the national debt at a record level of $7 trillion. However, under a new proposal to transform the nation's tax system, America could be debt free in the next ten years.

As envisioned by H.R. 3759, the "Transform America Transaction Act of 2004" would eliminate all federal taxes including payroll, capital gains, corporate profits and income tax by charging a small fee on the trillions of cash and electronic transactions conducted by consumers. Analysts at the Congressional Research Service conclude monies generated from the transaction fee would exceed revenues currently generated from federal taxes. The additional funds would serve to eliminate the current national debt.

"A debt free nation would strengthen our national security, economic prosperity and empower our country to do more in providing for the health and education of our citizens," said Rep. Chaka Fattah (D-Pa.), the prime sponsor of the proposal. "A transformed America is a goal worthy of a great nation."

For more information on the "Transform America Transaction Act of 2004," visit the Tax Corner at http://www.house.gov/fattah.