We are working on a brand new version of the game! If you want to stay informed, read our blog and register for our mailing list.
Bill: URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478
Details
Submitted by[?]: Kapitalist-Arbeitsfamilien Partei
Status[?]: defeated
Votes: This bill proposes to change income taxes. It requires more than half of the legislature to vote yes. This bill will not pass any sooner than the deadline.
Voting deadline: July 2479
Description[?]:
| ************************************************************************************************************************ BREAKDOWN of BUDGET (cf. http://80.237.164.51/particracy/main/budget.php?nationid=17 ): Revenue: 3,403,657,740 LIK Expenses: 153,100,000,000 LIK DEFICIT: -149,696,342,260 LIK ************************************************************************************************************************ To the National Convocation of the Axis Mundi Likatonian Res Publica: Greetings! Since it has been nearly over T-E-N (10) years that this Legislature has actually voted on a Balanced Budget, I would like to take this time to advise and inform you on the Nation's DIRE economic needs: (1) First and foremost, the draconian and irresponsible modification of the Income Tax to 99% on incomes above 1,000,000 LIK by this Legislature in the last session that has actually resulted in exactly ZERO Likaths in Federal Revenue without the PROPORTIONAL REDUCTION in overall Federal Government spending has resulted in a budget DEFICIT for the FIRST time in the history of this Republic of an ABOMINABLE ~150 Billion LIK!!! (2) (a) Second, after reviewing the dire economic situation with the distinguished Harvard Economist, Dr. N. Gregory Mankiw (Founder of the Pigou Club), we are credible in asserting the problem in the slowing of economic growth. That is as Dr. Mankiw and I explain: "FISCAL CROWDING OUT!!!" as seen by evident of Likatonia's recent GDP statistics: ************************************************************************************************************************ GROSS DOMESTIC PRODUCT (GDP) [cf. http://80.237.164.51/particracy/main/budget.php?nationid=17 ] *****CONSUMPTION: 12,009,613,758 LIK (7.17%)***** ***GOVERNMENT: 153,100,000,000 LIK (91.42%)*** *****INVESTMENT (jobs): 2,357,402,248 LIK (1.41%)***** Net Exports: 0 RUT (0.00%) GDP: 167,467,016,006 LIK (100.00%) ************************************************************************************************************************ (b) You see, in addition to OVERALL GDP growth at THIRD WORLD level(s), the INVESTMENT component of the Gross Domestic Product (GDP) is at an ABOMINABLE ~1%. "This is," as Havard Economist Dr. Mankiw explains, "because Government Spending was just TOO HIGH contributing to an unbelieveable 91.42% of GDP thus exceeding the 1.41% contribution of INVESTMENT spending by businesses (which are owned by Democratic Worker Councils, by the way) which is where manufacturing jobs and business expansion occur thereby resulting in a ~150 BILLION Likath deficit." 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 (DWCs) scale back on investment and manufacturing. (c) Moreover, as a result of business investment and production not being high enough to create JOBS for millions of starving Likatonians, the CONSUMPTION component of GDP is at an HISTORIC low of ~7% when the normal range should be over 80%. Then again, it makes perfect sense: if people do not have JOBS and are STARVING, they cannot naturally go and consume the luxurious goods and services produced by the economy by businesses like Wal-Market etc--[all owned and operated by DWCs]. (3) (a) Third, since this is the FIRST time in Likatonian history that we have had a budget crisis of this magnitude, the ballooning of the National Debt is having a CONTRACTIONARY (shrinking) effect on the Republic's overall money suppy that is circulating in the economy. In other words, the PRICE of money (as when you borrow it) as reflected in the interest rates that banks charge on Car notes, mortgages, small business loans, etc. is SKYROCKETING at an alarming rate. (b) When the price of any commodity (in this case "money" when you borrow it) goes up, the demand for it goes DOWN thus leading to an economic downturn as was seen in the Great Depression of 1929 in the Union of States on Planet Aarth that is on the southside of the Milky-White Galaxy. In the same way, the Likatonian people and DWC businesses are taking out less loans which is steadily increasing depressed business activity and UNEMPLOYMENT!!! (4) (a) Therefore, we strongly suggest that this Convocation IMMEDIATELY install a fiscally responsibly Flat Tax of 20% on all upper-income families making OVER 11,429 LIK per year--[or, for practical purposes, the equivalent to $100,000 per year]--in order for the Legislature to CUT overall Federal spending PROPORTIONALLY by the end of this year. Fortunately, we are credibily certain that this would ELIMINATE the deficit, curb inflation, lower interest rates, and thereby put a halt to the "Fiscal Crowding Out" economic situation thus creating jobs for millions of Likatonians currently out of work. (b) In addition, we as credible economists STRONGLY recommend that the Convocation immediate ABOLISH the Corporate Tax on profits. Remember, according to the current laws of Likatonia, ALL of the corporations that are privately owned in the Republic are REQUIRED to be manged by Democratic Worker Council(s) (or WORKERS) and NOT wealthy landowners. A repeal of the corporate tax is a repeal on the tax on profits that WORKERS make for themselves. Thank you for your full support. Cordially, Dr. Fiona C. Machlachlan, Minister of Finance & Chief Economist of the Pigou Club & St. Vodinsburg's College Co-signed, Dr. N. Gregor Mankiw, Chief Economist at Harvard University & Founder of the Pigou Club |
Proposals
Article 1
Proposal[?] to change Tax percentage of the profit made by corporations.
Old value:: 25
Current: 15
Proposed: 0
Article 2
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 |
| > 11,429 LIK | 20% | 68,452,000,000 LIK | Total | 68,452,000,000 LIK |
Debate
These messages have been posted to debate on this bill:
| Date | 07:36:00, October 30, 2007 CET | From | Permissive Social Union | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | Where the hell is Manhattan College? I don't see it listed in cities of this country? Is it a foreign power you are quoting? |
| Date | 20:28:17, October 30, 2007 CET | From | Kapitalist-Arbeitsfamilien Partei | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | Oh, my apologies. It was a TYPO!!! I meant to say "St. Vonderburg's College." |
| Date | 20:40:07, October 30, 2007 CET | From | Democratic Workers' Party and CTUL List | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | Article 1 bad. Article 2 good. We insist that Convocation remember that spending is actually the best way out of a depression in the economy. |
| Date | 20:48:19, October 30, 2007 CET | From | Democratic Workers' Party and CTUL List | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | We further warn that relieving the budget of the revenue from corporation tax will only spiral the economic depression further down. |
| Date | 21:20:32, October 30, 2007 CET | From | Kapitalist-Arbeitsfamilien Partei | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | (1) (a) DWP, your argument is ONLY valid on the CONDITION that the Convocation votes down my spending bill that BALANCES the budget since it only SPENDS what the government takes in TAXES: namely, ~113,180,000,000 LIK. (b) Now, I do recognize that budget and spending bills can be controversial b/c of the POLITICS of where to direct the people's tax dollars. If you vote to PASS this bill and submit a spending budget on a CONSTRAINT of ~113,180,000,000 LIK, you can direct the monies ANYWHERE you see fit. Yes, if you vote to spend 50 billion on healthcare and 1 billion on Military, I will support for the sake of a BALANCED budget. (2) Let me remind you that in the long-run abolishing the Corporate Tax will give the government MORE revenue!!! Why??? Well, ask yourself this very simple question: "If Likatonia's Corporate Tax rate is 0% and the Holy Luthori Empire's tax rate on profit is 10%, where will YOU set up your business???" That's right: you will move all of your companies and JOBS to Likatonia to SAVE millions of LIK in profit. As a result of our population INCREASING due to enhanced business productivity, MORE people will be paying the 20% Flat Tax thus giving the Gov't MORE revenue to spend on welfare, healthcare, etc. |
| Date | 21:24:29, October 30, 2007 CET | From | Kapitalist-Arbeitsfamilien Partei | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | P.S.: if you are referring to the fact that the Spending multiplier is GREATER than the tax cut multiplier, you are correct, but my budget that I submitted TARGETS more direct government spending into loans to DWC industries, education, the military (industrial complex), infrastructure construction, and the STATE-owned banking industry. |
| Date | 21:28:54, October 30, 2007 CET | From | AM Radical Libertarian Party | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | To CWFP - this would be an excellent arguement if it were not for one inconvenient fact - All industry is owned and operated by the state Therefore, if you move your company to Likatonia, you will lose your company to confiscation. We must change that before there will be any chance of any industrial growth. |
| Date | 21:49:51, October 30, 2007 CET | From | Kapitalist-Arbeitsfamilien Partei | To | Debating the URGENT!!! Fix the Budget CRISIS, INFLATION, & UNEMPLOYMENT Act of 2478 |
| Message | I have a bill that changes that policy and it might possibly pass. However, ALL industry is not owned by the state. Rather, to be more accurate to the laws of the books, 50%of industry is owned by Democratic Worker Councils AND the Government. Therefore, my argument still has merit b/c businesses that are owned by DWCs in other countries can move and operate. |
subscribe to this discussion - unsubscribe
Voting
| Vote | Seats | |||
| yes |
Total Seats: 220 | |||
| no | Total Seats: 262 | |||
| abstain | Total Seats: 184 |
| Random fact: Party candidates for head of state elections are not visible to the public. This means that you cannot see who will run and who will not, which adds another strategic element to the elections. |
| Random quote: "A strong body makes the mind strong. As to the species of exercises, I advise the gun. While this gives moderate exercise to the body, it gives boldness, enterprise and independence to the mind. Games played with the ball, and others of that nature, are too violent for the body and stamp no character on the mind. Let your gun therefore be your constant companion of your walks." - Thomas Jefferson |