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Bill: Business Investment & Balance Budget Surplus Act of May 2461
Details
Submitted by[?]: Capitalist Working Families
Status[?]: defeated
Votes: This bill proposes to change the allocation of funds in the budget. It requires more than half of the legislature to vote yes. This bill will not pass any sooner than the deadline.
Voting deadline: September 2462
Description[?]:
| To the National Assembly of the Commonwealth of Rutania: Since it has been nearly 2 years that this Legislature has actually voted on a Balance Budget, I would like to take this time to inform you on the Nation's DIRE economic needs. As you know, in the last cycle my Administration successfully garnered enough support for the passage of a comprehensive and revolutionary economic reform and growth taxation and spending bill through this Legislature. However, the acceleration of that economic growth had not yet translated into actual JOB GROWTH via Business Investment as evident by millions of Rutanians still seeking work. Now, don't me wrong: the revolutionary tax cuts that this Legislature approved nearly UNANIMOUS are working but the growth of the economy just has not materialized quickly as we expected. Nevertheless, after reviewing the dire economic situation with the distinguished Economist, Dr. Fiona Maclachlan, of Manhattan College, we are credibly certain that we have pinpointed the problem in the slowing of economic growth. That is as Dr. Machlachlan explains: "FISCAL CROWDING OUT!!!" as seen by evident of the Rutania's recent GDP statistics: ************************************************************************************************************************ GROSS DOMESTIC PRODUCT (GDP) Consumption: 296,622,352,973 RUT (71.56%) ***Government: 59,437,734,606 RUT (14.34%)*** ***Investment: 58,449,203,340 RUT (14.10%)*** Net Exports: 0 RUT (0.00%) GDP: 414,509,290,919 RUT (100.00%) ************************************************************************************************************************ You see, although OVERALL GDP growth has risen exponentially due to the abolishment of Income taxes for families below the 17,000 RUT threshold and reduction of taxes above, the INVESTMENT component of the Gross Domestic Product (GDP) is still at a BARE MININIUM. "This is," as Economist Dr. Machlachlan explains, "because--despite the government maintaining a balance budget--Government Spending was just TOO HIGH contributing to 14.34% of GDP thus exceeding the 14.10% contribution of INVESTMENT spending by businesses which is where manufacturing jobs and business expansion occur." Why??? Well, this condition is known as "Fiscal Crowding Out" where if there is too much of GDP growth coming from increases in Government spending, this will lead to INFLATION. When the ugly monster of INFLATION grips the countryside, the economy becomes very VOLATILE (like a "roller coster") and businesses scale back on investment and manufacturing. Therefore, we suggest that we IMMEDIATELY reduce the National Sales Tax by 50 percentage points from the old level of "50%" to "25%" in order for Legislature to cut overall Federal spending in HALF by the end of this year. Fortunately, this would curb inflation and thereby put a halt to the "Fiscal Crowding Out" economic situation thereby creating jobs for millions of Rutanians currently out of work. Thank you for your full support. Cordially, Christian E. Savage, Minority Leader of the Capitalist Working Families Party Co-Signed, Dr. Fiona Machlachlan, Chief Economist of the Pigou Club & Manhattan College |
Proposals
Article 1
Proposal[?] to change Sales tax on luxury goods.
Old value:: 50
Current: 33
Proposed: 25
Article 2
| Ministry | Current Budget | Old Budget | Propesed Budget |
| Head of Government | 22,000,000 RUT | 18,867,303 RUT | 9,433,651 RUT |
| Foreign Affairs | 285,000,000 RUT | 18,867,303 RUT | 9,433,651 RUT |
| Internal Affairs | 2,463,000,000 RUT | 0 RUT | 0 RUT |
| Finance | 150,000,000 RUT | 3,600,000,000 RUT | 1,800,000,000 RUT |
| Defence | 5,624,000,000 RUT | 30,000,000,000 RUT | 15,000,000,000 RUT |
| Justice | 285,000,000 RUT | 2,850,000,000 RUT | 1,425,000,000 RUT |
| Infrastructure and Transport | 15,313,000,000 RUT | 3,600,000,000 RUT | 1,800,000,000 RUT |
| Health and Social Services | 28,750,000,000 RUT | 2,850,000,000 RUT | 1,425,000,000 RUT |
| Education and Culture | 16,850,000,000 RUT | 3,600,000,000 RUT | 1,800,000,000 RUT |
| Science and Technology | 6,763,000,000 RUT | 3,600,000,000 RUT | 1,800,000,000 RUT |
| Food and Agriculture | 5,931,000,000 RUT | 2,850,000,000 RUT | 1,425,000,000 RUT |
| Environment and Tourism | 1,255,000,000 RUT | 2,850,000,000 RUT | 1,425,000,000 RUT |
| Trade and Industry | 2,663,000,000 RUT | 3,600,000,000 RUT | 1,800,000,000 RUT |
| Total | 86,354,000,000 RUT | 59,437,734,606 RUT | 29,718,867,302 RUT |
Debate
These messages have been posted to debate on this bill:
| Date | 02:14:53, September 27, 2007 CET | From | Rutanian Conservative Party | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | Enough is enough. By cutting the budget by this amount, you are dooming the future of Rutainia to Third World Status. |
| Date | 02:48:28, September 27, 2007 CET | From | Capitalist Working Families | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | No, we are NOT dooming the future of Rutani to Third World Status but just the OPPOSITE: if we reduce Government spending, it will rectify the "Fiscal Crowding" out situation and thus lead to increase BUSINESS INVESTMENT. Besides, wasn't it YOU that said that you would like to see the Luxury Tax cut later in the future??? |
| Date | 03:23:23, September 27, 2007 CET | From | Deus Ex Machina Party | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | This budget is ridiculous. We do support a lower luxury tax, because the current value is also ridiculous. |
| Date | 08:43:18, September 28, 2007 CET | From | Rutanian Conservative Party | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | Our views are the same as the DEM party...for once. |
| Date | 10:25:40, September 28, 2007 CET | From | Capitalist Working Families | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | RCP, perhaps you should think about changing your party name to "Rutanian LIBERAL Party" since you continually supporting WASTEFUL Pork-barrel Government spending!!! I mean even the Vox party voted for this budget the last time it was submitted before the special elections as well as the others that voted "no." Do I smell a "flip flop"(haha)??? |
| Date | 23:32:42, September 29, 2007 CET | From | Capitalist Working Families | To | Debating the Business Investment & Balance Budget Surplus Act of May 2461 |
| Message | Btw, Rutanian Conservative Party: "technically" the Commonwealth is ALREADY a "Third World Nation" b/c the **Per Capita Income** (when you divide the GDP by the population number) is a MINISCULE 2,800 RUT (or $16,471 in American dollars). If we increase the investment component of GDP by cutting Gov't spending and interest rates, that component will up thus increasing the per capita income of the Nation. |
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Voting
| Vote | Seats | ||||
| yes |
Total Seats: 287 | ||||
| no |
Total Seats: 463 | ||||
| abstain | Total Seats: 0 |
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