WASHINGTON, DC -- It’s an ideal portrayal.  An America where job growth triumphs over job loss, and every man, woman, and child enjoys the benefits of health insurance; an America where students are guaranteed an equal educational opportunity and NO child is left behind; a place where IRS forms, federal taxes, and audits have been eliminated, and revenue sharing allows for the fiscal and social renewal of untapped urban and rural markets; an America where elimination of the national debt will unleash financial security and economic prosperity for present and future generations.  Congressman Chaka Fattah (D-PA) has introduced legislation that will begin to frame this image of a better America. 

The bill, "The Comprehensive Transform America Transaction Fee Act of 2007," calls for the elimination of all federal taxes on individuals and corporations, and replaces it with a fee on transactions.  Experts agree eliminating federal taxes would stimulate the economy and spur job growth by allowing businesses to expand their operations and hire more employees. 

The proposed transaction fee would be equivalent to current revenues generated by all federal taxes, while conceivably supplying needed additional income.  The excess funds would serve to eliminate the current national debt, which stands at a whooping $8.8 trillion.  It would also provide universal health care to all, support an equitable public school finance system, and fund economic development in urban and rural areas.

Replacing the existing tax code with a simplified alternative is critical to America's economic vitality.  Currently, ours is the most complicated and convoluted tax code in the industrialized world.  For example, the federal income tax section of the code has ballooned from a mere two pages to more than 16,000 pages.  The complexity of the federal income tax alone cost Americans more than $265 billion, and 6 billion hours annually in compliance.  The "The Comprehensive Transform America Transaction Fee Act of 2007” will examine a more cost-effective approach towards tax code compliance.

For a comprehensive list of the documents that helped frame this legislation visit the "Transform America Corner" at www.house.gov/fattah.