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Bill: Income tax proposal of February 2481
Details
Submitted by[?]: Democratic Rationalists (PrCoa)
Status[?]: passed
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: October 2481
Description[?]:
| The Democratic Rationalists propose to adjust the government's income tax policy to better address the economic situation of the Democratic Republic of Aloria. |
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 |
| > 6,000 ALO | 3% | 1,862,000,000 ALO |
| > 8,000 ALO | 4% | 1,776,000,000 ALO |
| > 10,000 ALO | 5% | 1,319,000,000 ALO |
| > 12,000 ALO | 6% | 1,043,000,000 ALO |
| > 14,000 ALO | 7% | 1,078,000,000 ALO |
| > 16,000 ALO | 8% | 1,000,000,000 ALO |
| > 18,000 ALO | 9% | 705,000,000 ALO |
| > 20,000 ALO | 10% | 461,000,000 ALO |
| > 22,000 ALO | 11% | 213,000,000 ALO |
| > 24,000 ALO | 12% | 305,000,000 ALO | Total | 9,762,000,000 ALO |
Debate
These messages have been posted to debate on this bill:
| Date | 22:49:46, November 04, 2007 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Income tax proposal of February 2481 |
| Message | A point about the graduated income tax that I think escapes people sometimes: The person who makes 26,000 ALOs/year doesn't pay a 12% tax rate under this plan. Rather, he pays a %12 tax rate on his income *over* 24,000 ALOs/year. Thus, a person who makes 25,000/year would pay %3 on his income between 6,000 and 8,000. %3 of 2000 is 60. Then, he's pay %4 on his income between 8000 and 10,000. %4 of 2000 is 80. Then he'd pay %5 on his income between 10,000 and 12,000. %5 of 2000 is 100. And so on. HIs aggregate tax bill would be the sum total of the tax rates between those brackets. For someone who makes 26,000 ALOs/year (one of Aloria's * extremely wealthy citizens*) the tax bill would be 1500 ALO (a little under %6 of total income), not 3120 ALOs, which is what it would be if his tax rate were a flat %12. The import of all of this is that this really isn't that big of a revenue enhancement, even for the very wealthiest Alorians. For an Alorian making 26,000/year, his tax bill as a percentage of his income will increase from %3 currently, to a little under %6. |
| Date | 22:52:09, November 04, 2007 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Income tax proposal of February 2481 |
| Message | Also, this bill eleminates taxes for Alorians making under 6000. So many Alorians will even get a tax cut under this bill. |
| Date | 22:57:35, November 04, 2007 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Income tax proposal of February 2481 |
| Message | To put it into context: current income tax revenues amount to about 10 billion ALOs/year. This bill will raise that by about 2.5 billion ALOs/year, or about the same amount we could expect to generate from a %1 increase in the luxury sales tax. |
| Date | 23:26:12, November 04, 2007 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Income tax proposal of February 2481 |
| Message | One final selling point: Passing a graduated income tax will drive MLP nuts. |
| Date | 03:37:33, November 05, 2007 CET | From |  Moderate Libertarian Party (NoCoalition) | To | Debating the Income tax proposal of February 2481 |
| Message | It'll drive this nation's taxpayers into debt and despair. |
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Voting
| Vote | Seats | ||||
| yes |
Total Seats: 399 | ||||
| no | Total Seats: 245 | ||||
| abstain | Total Seats: 56 |
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