Fattah's Debt Free America Act Sees Movement on Capitol Hill

WASHINGTON, March 3 /PRNewswire-USNewswire/ -- Congressman Chaka Fattah's (D-PA) Debt Free America Act, a bold new approach to eliminating America's escalating debt, has hit the bulls-eye on an issue that ranks high with the American people and Congressional leaders.

The legislation provides an innovative method to paying off the debt now escalating past the $12 trillion mark. The Debt Free America Act proposes a 1 percent fee to be charged on all transactions including cash, checks, credit cards, processed through the Federal Reserve Bank, and collected at the point of sale. Fattah's legislation would impose a penny fee on every dollar spent with the exception of stock trades. The Federal Reserve estimates there were $755 trillion in transactions in the United States in 2008. The Debt Free America Act provides a comprehensive plan that when followed could conceivably pay off the nation's debt within 10 years.

Fattah's bill H.R. 4646, addresses the growing concern of 87 percent of the American people - paying off the debt and reducing the deficit. The Congressional Joint Economic Committee – its main purpose to study the U.S. economy - is moving to review the Debt Free America Act at the request of Representative Elijah Cummings (D-MD), a committee member. In a letter to committee chair Carolyn Maloney (D-NY) Cummings asks for a review and report of the potential of H.R. 4646 to eliminate the debt.

Talk of debt and deficit reduction is gaining momentum on Capitol Hill. House Majority Leader Steny Hoyer (D-MD), while not directly addressing the Fattah bill in his speech to the Brookings Institute on Fiscal Responsibility, seized on the challenge that the Philadelphia Congressman's bold proposal is designed to tackle suggesting that a balanced approach of tax hikes and spending cuts will be necessary to eliminate the debt and bring down the deficit. Members of the Blue Dog Coalition have introduced legislation to create a balanced budget amendment to the U.S. Constitution and House Republicans are talking about introducing a similar measure.

In addition to the 1 percent transaction fee, Fattah's Debt Free America Act calls for the creation of a Bipartisan Task Force for Responsible Fiscal Action to control and limit federal spending, it provides taxpayers making $250,000 or less (for joint filers, or $125,000 for individuals) the opportunity to collect a 1 percent tax credit to compensate for the transaction fee and it takes the additional step of broad-based tax reform once the national debt is paid down.

"The soaring national debt and rising deficits translate into bad outcomes for all Americans. It is time for thinking outside the box," said Congressman Fattah (D-PA). "Imagine, one penny on every dollar Americans spend will create enough revenue for the federal government to meet its financial commitments while eliminating the debt and it can all be done in the next ten years. In the end, the Task Force will provide remedies to enforce more responsible fiscal action on from our lawmakers."

For more on the Debt Free America Act, visit Congressman Fattah's website: www.fattah.house.gov

SOURCE Office of Congressman Chaka Fattah