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Bill: Income tax proposal of October 2447
Details
Submitted by[?]: Trabajo y Libertad
Status[?]: defeated
Votes: This bill proposes to change income taxes. It requires more than half of the legislature to vote yes. This bill will pass as soon as the required yes votes are in, or will be defeated if unsufficient votes are reached on the deadline.
Voting deadline: June 2448
Description[?]:
| Old tax income: 2,343,053,000,000 DAV Old surplus: 529,498,415,332 DAV Required tax for 0 surplus: 1,813,554,584,668 DAV New tax income: 1,814,850,000,000 DAV New surplus: 1,295,415,332 DAV Our calculations put the GDP per capita of Davostan at roughly 120,000DAV. This proposed new tax will see no income taxed that falls below the GDP per capita and issues tax cuts for all the nation except the few elite who earn over 750,000DAV per year. These high earners are those who have benefited most from Davostan and can afford to repay the nations gifts through carrying some small part of the burden for the nations lowest earners. |
Proposals
Article 1
We propose to alter income tax brackets to the following setup. Information about the current income tax system can be found here.
| Bracket | Tax | Estimated Revenue |
| > 130,000 DAV | 8% | 69,779,000,000 DAV |
| > 150,000 DAV | 11% | 183,728,000,000 DAV |
| > 200,000 DAV | 18% | 464,997,000,000 DAV |
| > 350,000 DAV | 26% | 316,105,000,000 DAV |
| > 500,000 DAV | 35% | 267,361,000,000 DAV |
| > 750,000 DAV | 50% | 55,814,000,000 DAV | Total | 1,357,784,000,000 DAV |
Debate
These messages have been posted to debate on this bill:
| Date | 18:22:40, August 27, 2007 CET | From |  Partido Democrático del Capitalista | To | Debating the Income tax proposal of October 2447 |
| Message | Shifting the brackets up is certainly a nice adjustment, but some of those rates are just absurd. Granted, there are very few citizens making above 750,000 DAV in a year, but even still, they should not have to endure giving half of each additional Davosti they make to the government. |
| Date | 18:34:37, August 27, 2007 CET | From | Partido Laborista Socialista | To | Debating the Income tax proposal of October 2447 |
| Message | Most assuredly, anyone earning that sort of ridiculous income, over 6 times the national average, is capable of paying that amount of tax on their income over 750,000 DAV without having any effect what-so-ever on their quality of life. |
| Date | 18:42:14, August 27, 2007 CET | From | Partido Democrático del Capitalista | To | Debating the Income tax proposal of October 2447 |
| Message | It isn't about quality of life. What are we spending all this money on? Clearly, if the lower income brackets are paying less (or none at all!) in taxes, then they should need significantly less in the way of government aid. A tax cut should be a cut for everybody, and the difference should be made up in decreased spending. |
| Date | 19:34:22, August 27, 2007 CET | From | Trabajo y Libertad | To | Debating the Income tax proposal of October 2447 |
| Message | We've already worked on the decreased spending: a cut of 200,000,000,000DAV in military spending and no increase elsewhere. Also future years can see further drops in spending across the board with corresponding cuts in tax. As this happens we'll be looking to cut taxes from the bottom and work our way up. And the tax cut is for virtually everybody. An increase for the very few at the very top lets us alleviate the financial burden on the working classes quicker. Figures show that a Davostani earning 1,000,000DAV still takes home 714,400 after tax. That's almost 6 times the GDP per capita, certainly more than enough to live a very fine lifestyle. Considering no one in Davostan actually earns that much (attempts to add a tax bracket at 1,000,000DAV results in 0DAV in taxes) I hardly see this as much of an issue. They're only paying an extra 14% on top of what they would have been paying for earnings over 750,000DAV anyway and an overall tax of less than 30%, there are nations who tax their POOREST more than that. Considering that this money isn't required to pay for life's necessities I think they can spare it in order to help those who do need the extra money from these tax cuts for food, housing, etc. Bracket Amount After Tax 0-130,000 130,000 130,000 130,000-150,000 20,000 18,400 150,000-200,000 50,000 44,500 200,000-350,000 150,000 123,000 350,000-500,000 150,000 111,000 500,000-750,000 250,000 162,500 750,000-1,000,000 250,000 125,000 Total 1,000,000 714,400 |
| Date | 19:36:03, August 27, 2007 CET | From | Trabajo y Libertad | To | Debating the Income tax proposal of October 2447 |
| Message | Sorry those figures are unreadable, changed them about a bit here: Bracket ---------- Amount ---------- After Tax 0-130,000 ----- 130,000 ----- 130,000 130,000-150,000 ----- 20,000 ----- 18,400 150,000-200,000 ----- 50,000 ----- 44,500 200,000-350,000 ----- 150,000 ----- 123,000 350,000-500,000 ----- 150,000 ----- 111,000 500,000-750,000 ----- 250,000 ----- 162,500 750,000-1,000,000 ----- 250,000 ----- 125,000 Total ----- 1,000,000 ----- 714,400 |
| Date | 20:24:00, August 27, 2007 CET | From | Partido Democrático del Capitalista | To | Debating the Income tax proposal of October 2447 |
| Message | Well, as under the previous system, 1,000,000 DAV would be taxed 264,800 DAV, so it's only a marginal increase. We're not thrilled about it, but we will certainly back off a little on our opposition, simply as we feel this will lead to lower taxes for everyone further down the road. |
| Date | 22:34:51, August 27, 2007 CET | From | Trabajo y Libertad | To | Debating the Income tax proposal of October 2447 |
| Message | Now there's a thought, under the current tax system that 1,000,000DAV earning citizen keeps 735,200DAV. That means even with the new bracket over 750,000 they are only paying an extra 20,800DAV. Hardly enough to break the bank when they have that much money. |
| Date | 23:08:33, August 27, 2007 CET | From | Partido Democrático del Capitalista | To | Debating the Income tax proposal of October 2447 |
| Message | Right, but it's important not to just assume that since they have a ton of money that they're willing to give more away. As stated, we're decidedly not in favor of this, but we're far less against it than we were before doing the math. We can't support it, but we won't block it. |
| Date | 14:53:01, August 28, 2007 CET | From | Partido Laborista Socialista | To | Debating the Income tax proposal of October 2447 |
| Message | It's not whether they're WILLING to give the money to the government, it's whether they're ABLE to do so. It is clear that they ARE able, and since the poor AREN'T able, the rich should shoulder the burden for them. |
| Date | 15:32:44, August 28, 2007 CET | From | Trabajo y Libertad | To | Debating the Income tax proposal of October 2447 |
| Message | Yes, I doubt there are many people particularly willing to give their money to the government, we are after all a group of regrettably necessary leeches. The point behind this change to the tax system is to make it as painless as possible for as many people as we can. |
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Voting
| Vote | Seats | ||||
| yes |
Total Seats: 100 | ||||
| no | Total Seats: 68 | ||||
| abstain | Total Seats: 57 |
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