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Bill: "It's NOT the 'Government's' Money; It's the PEOPLE's Money!!!" Act of 2482
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 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 2483
Description[?]:
| To the National Convocation of the Axis Mundi Likatonian Res Publica: Greetings! This comprehensive Middle Class Tax cut agenda seeks to give the Republic of Likatonia and her citizens the TRUE spirit of freedom and democracy by allowing them "to keep more of their OWN money to SPEND, SAVE, or INVEST in the economy. Remember, the tax revenue surplus is NOT the government's money [in a democracy]; It's the PEOPLE's money!!!" (1) (a) First and foremost, after reviewing the dire economic situation with the distinguished St. Vodinburg College Economist, Dr. Fiona C. Machlachlan (Chief Economist of the Pigou Club), we are credible in asserting the problem in the slowing of economic growth. That is as Dr. Maclachlan 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: 968,403,778,215 LIK (68.74%)***** ***GOVERNMENT: 250,229,486,865 LIK (17.76%)*** *****INVESTMENT (jobs): 190,224,137,437 LIK (13.50%)***** Net Exports: 0 RUT (0.00%) GDP: 1,408,857,402,517 LIK (100.00%) ************************************************************************************************************************ (b) "This is," as St. Vodinberg College Economist Dr. Machlachlan explains, "because Government Spending was just TOO HIGH contributing to an unbelieveable 17.76% of GDP thus exceeding the 13.50% 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. 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 ~68% 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]. (2) (a) Second, 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!!! (3) (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--[ OOC: or, for practical purposes, the equivalent to $100,000 per year]--[IC] 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. Thank you for your full support. Cordially, Mr. Christian E. Savage, Emissary of the Axis Mundi Res Publica (Head of State) Co-signed, Dr. Fiona C. Machlachlan, Chief Economist of the Pigou Club & St. Vodinsburg's College |
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 |
| > 11,429 LIK | 20% | 68,608,000,000 LIK | Total | 68,608,000,000 LIK |
Debate
These messages have been posted to debate on this bill:
| Date | 10:04:59, November 08, 2007 CET | From | Democratic Workers' Party and CTUL List | To | Debating the "It's NOT the 'Government's' Money; It's the PEOPLE's Money!!!" Act of 2482 |
| Message | The implication of this agenda is a serious and dangerous shortfall of revenue. We cannot support. |
| Date | 23:08:54, November 08, 2007 CET | From | Democratic Workers' Party and CTUL List | To | Debating the "It's NOT the 'Government's' Money; It's the PEOPLE's Money!!!" Act of 2482 |
| Message | Minister of Finance, Alyx Lokitogorska, points out that there is currently a steady and desirable rate of growth in the economy, causing a steady and desirable increase in public investment of ~0.5% per annum (which works out at around 5 bn LIK p/a. Desirable. |
| Date | 01:19:22, November 09, 2007 CET | From | Kapitalist-Arbeitsfamilien Partei | To | Debating the "It's NOT the 'Government's' Money; It's the PEOPLE's Money!!!" Act of 2482 |
| Message | We believe the Minister of Finance, Alyx Lokitogorska, working the DWP payroll has COOKED the books for political purposes. [OOC] The ONLY thing that this bill does is raise the TOP tax bracket from 10,000 LIK [or ~$80,000] to 11,429 LIK [or $100,000]. So, in essence it gives a 100% Tax cut to ALL Middle Class families making between $80,000 and $100,000. [IC] So, DWP, are you opposed to tax cuts for MIDDLE CLASS families??? |
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Voting
| Vote | Seats | |||
| yes |
Total Seats: 271 | |||
| no |
Total Seats: 299 | |||
| abstain | Total Seats: 96 |
| Random fact: When you join the game, you will find yourself with only zero seats. That's because your party's representatives haven't been elected yet. You need to establish your party's position on issues by proposing several bills that your party wants passed and sending them to vote. This raises your visibility and if you do it enough, you will win seats at the next election. |
| Random quote: "'The illusion of Pontesi nationhood'. The Serpent speaks. How can they say these things? How can they call our country an illusion? You can see it clear as day, these people won’t stop until they’ve destroyed us all." - Morgan Einar, former Pontesian general |