To establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Debt Free America Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--The Congress finds the following: (1) The current tax structure creates economic distortions that limit growth and job creation. (2) The estimated cost of compliance to taxpayers is five billion hours and approximately $200 billion. (3) Restructuring the tax code will promote economic prosperity. (4) Replacing existing Federal taxes with a fee on transactions eliminates systemic inefficiency that plagues the current tax code. (5) The United States, from its beginning in 1790 to the present, has been free of a national debt for only two years, 1834 and 1835. (6) The national debt has grown from $75.5 million in 1790 to $9.4 trillion as of December 2010. (7) Expressed as a percentage of gross domestic product (GDP), the national debt reached a high of 108.6 percent of GDP in 1946. (8) After 1946, the national debt as a percentage of GDP declined, reaching a low of 32.5 percent in 1981. (9) The large budget deficits of the 1980s and 1990s reversed this trend and pushed the percentage to another high of 49.5 percent in 1993. (10) The Federal budget surpluses from fiscal year 1998 to fiscal year 2001 were used to...