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A proposal to impose a 1-percent tax on most financial transactions, including those with banks and credit unions, appears to have little chance of becoming law.

The MCUL and CUNA continue to receive inquiries regarding H.R. 4646, the Debt Free America Act. The legislation was introduced on Feb. 23, 2010 but has languished in committees since then. 

There has been a lot of Internet traffic suggesting that enactment of this proposal is imminent; however, CUNA does not believe that is the case, said Marcia Hune, MCUL’s vice president of legislative affairs.

The legislation has a single sponsor in the House, Rep. Chaka Fattah, D-Pa. No other members have cosponsored this legislation. Additionally, the legislation has been referred to four House committees. No action on this legislation is scheduled before the end of the year, even though some unsubstantiated Internet reports have suggested that Democrats plan to push the proposal through during the lame-duck session following the Nov. 2 election.

According to Fattah’s website, the bill would charge a 1-percent fee on all financial transactions, except those involving stock, as well as retail transactions in an effort to reduce the federal deficit. Click here to read more about Fattah’s proposal.

A recent report from the President's Economic Recovery Advisory Board did not include a transaction tax among the options to raise revenue and address the federal budget deficit, Hune said. The MCUL will keep an eye on this legislation, but no action is expected soon on this legislation, if ever, she added.