Good Question: Bank Transaction Tax

By: Jeff Herndon Email
By: Jeff Herndon Email

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Thursday, February 16, 2012

Tonight on Good Question, a chain email is making the rounds, claiming that the Obama Administration will soon impose a 1% tax on all bank transactions.

Is it true – the federal government taking 1% of your paycheck or Social Security check when it’s deposited into you bank account? Good Question.

The email is compelling. It begins by stating, “On January 1, 2013, the U.S. government is requiring everyone to have direct deposit for Social Security checks. Wonder why?” It goes on to claim that a bill in congress, HR 4646, will impose a “1% tax on all bank transactions” and that “this is a 1% tax on all transactions at any financial institution – banks, credit unions, savings and loans, etc. Any deposit you make or even transfer within your own bank, from one account to another, will have a 1% tax charged. It even says to check, which says it’s all true. I checked Snopes, and it turns out, according to the site, it’s not true.

There is a bill HR 4646, and it does propose a 1% tax on all bank transactions, while eliminating the federal income tax. But according to Snopes, the Obama Administration does not support it, nor do any members of congress, aside from the congressman who proposed the bill, Democratic Representative Ative Chaka Fattah of Pennsylvania.

If Snopes isn’t enough,, a nonpartisan watchdog site, also debunks the email, claiming Fattah first floated this idea in 2004. So far, it has gone nowhere.

If you have a good question, send it to me at I’ll do my best to answer your good question every Thursday on KAKE News at 6.

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