There is an emerging consensus that our current system of taxation is both cumbersome and costly, not to mention inadequate for meeting the extensive interests of the country. In fact, in December 2003, Speaker of the House Dennis Hastert affirmed that, "[Our] tax system is too complicated; it also hurts our nation's competitiveness. If our companies can't compete, we lose jobs here in America. [We] must start a discussion of how we create the best tax system possible to meet the needs of the people in the 21st century."

In response to the Speaker's appeal for meaningful tax reform, Congressman Chaka Fattah first introduced the "Transform America Transaction Fee of 2004", as a fresh idea for a stalled debate. Re-introduced in the 110th Congress, this legislation calls on the Department of Treasury to study a proposal to transform America's economy by eliminating all Federal taxes on individuals and corporations, and replacing them with a revenue generating system based on transaction fees. The proposed transaction fee based system would generate revenues equivalent to current collections from all federal taxes, while conceivably supplying additional income. The excess funds would serve to eliminate the current national debt, provide universal health care, support an equitable public school finance system, and fund economic development in urban and rural areas.
 

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