WASHINGTON, April 13, 2011 /PRNewswire-USNewswire/ -- Congressman Chaka Fattah (D-PA), a member of the House Appropriations Committee, has asked the House Rules Committee to include his legislation to end America's debt by 2022 as part of the proposed 2012 Republican budget plan scheduled for a vote this week on the House floor.
Fattah has sent a letter asking the Rules Committee to include as an amendment, portions of H.R. 1125, The Debt Free America Act, which he introduced on February 23rd, to address the most critical issue facing the budget – the revenue side of debt elimination – which is absent from currently available proposals.
The Debt Free America Act proposes a one percent transaction tax – a penny on the dollar – on all transactions in the economy except all those involving personal checking accounts, all financial stock transactions and those making under $250,000 would receive a 1% tax rebate. All proceeds from the transaction tax would be directed to pay down and retire the national debt.
While the Rules Committee has traditionally only accepted substituting amendments, Fattah is urging the committee members to make The Debt Free America Act in order as what is known as a perfecting amendment.
Fattah sent the following letter to the House Rules Committee:
April 13, 2011
Chairman David Dreier
Ranking Member Louise Slaughter
House Committee on Rules
House Committee on Rules
H-312 The Capitol
1627 Longworth House Office Building
Washington, D.C. 20515
Washington, DC 20515
Dear Chairman Dreier and Ranking Member Slaughter:
As the Committee on Rules considers proposed amendments to H. Con. Res. 34, Establishing the budget for the United States Government for fiscal year 2012 and setting forth appropriate budgetary levels for fiscal years 2013 through 2021, I urge the committee to make in order any amendment that reduces the national debt by more than the $5 trillion proposed in the Fiscal Year 2012 budget resolution.
Massive federal deficits and perpetual excessive national debt without substantial economic growth is inherently unsustainable, posing a critical threat to the nation's economic viability.
If the current fiscal policy remains in effect, the federal government will spend $1 trillion in interest payments by 2020. In just another nine years, 17 percent of all federal spending will be allocated for interest payments on the debt. Half of all income tax receipts will need to be allocated to pay the interest on the debt, which will exceed the size of the current defense budget.
The budget resolution reported out of the Committee on the Budget purportedly reduces the national debt by $4.7 trillion at some undetermined period of time after 2040 by making over $6 trillion in cuts to critically important programs such as education, public safety, health research, and food safety. In contrast, my proposed amendment to the budget resolution will eliminate the national debt in 10 years by creating a transaction tax of 1 percent on all retail and financial transactions, except for personal bank account transactions and those involving financial stocks. The proposed tax is broadly based to generate sufficient revenue to reduce the debt with minimal impact to the average taxpayer.
While the Committee on Rules has traditionally only accepted substituting amendments, I urge the Committee to make this perfecting amendment in order. In contrast to all currently available proposals, this amendment addresses the most critical issue facing the federal budget – the revenue side of debt elimination. Given the severity of the nation's long-term fiscal sustainability, the Committee should further rule in order amendments that significantly reduce the deficit.
Thank you for your consideration, and I look forward to discussing my proposed amendment to the members of the Committee.