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Bill: Tax Realignment and Simplification Proposal
Details
Submitted by[?]: Democratic Rationalists (PrCoa)
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 2581
Description[?]:
| We believe that recent tax reforms have caused too much of the tax burden to fall on Aloria's middle class and poor. 1) We recently adjusted the income tax to permit a %10 tax on income between 6500 and 10000 ALOs. While comfortable, many Alorians at this income level are fairly described as "middle class." 2) We recently enacted a corporate tax. Corporations will just build these taxes into the costs of their goods which poor and middle class consumers will pay at the retail counter. This bill proposes to shift the tax burden back to the wealthiest Alorians by eliminating the the %10 tax on the middle class, and by eliminating the corporate tax. Additionally, it eliminates the sales tax, which is by nature regressive, since poor purchasers pay a larger proportion of their income in sales taxes than affluent purchasers. We'll leave this bill up for discussion for awhile. |
Proposals
Article 1
Proposal[?] to change Tax percentage of the profit made by corporations.
Old value:: 15
Current: 5
Proposed: 0
Article 2
Proposal[?] to change Sales tax on luxury goods.
Old value:: 5
Current: 25
Proposed: 0
Article 3
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 |
| > 9,000 ALO | 50% | 18,483,000,000 ALO |
| > 11,000 ALO | 60% | 11,694,000,000 ALO |
| > 13,000 ALO | 70% | 11,307,000,000 ALO |
| > 15,000 ALO | 75% | 27,840,000,000 ALO | Total | 69,324,000,000 ALO |
Debate
These messages have been posted to debate on this bill:
| Date | 21:26:04, May 18, 2008 CET | From | Alorian Public Union | To | Debating the Tax Realignment and Simplification Proposal |
| Message | No. 9,000 is middle class. Middle class should pay taxes, but not as high as being proposed. They should be allowed social mobility, and such high taxation significantly handicaps this. Corporation tax may ultimately translate to sales tax, but the market should keep prices from going to high. Meanwhile, the luxury sales tax is just that, on Luxury goods. I have no problem with taxing consumption given how progressive it is. I have no problem with taxing people who buy yachts or large houses or luxury cars. I disagree that this bill takes that large of a burden off of the poor, and instead feel that it adds a great burden to the middle class. |
| Date | 21:34:34, May 18, 2008 CET | From | Alorian Public Union | To | Debating the Tax Realignment and Simplification Proposal |
| Message | Scratch that, I misread. My party still mantains, however that the sales tax is perfectly fine as it is and that the corporate tax does not neccessarliy directly translate to a de facto sales tax because of market forces. Still, given that 9,000 is more then comfortable and this being proposed is a marginal income tax, meanwhile the lowest tax bracket will be eliminated by this, I can see things more your way. I mantain that we shoud continue balancing were we get revenues from between mutliple sources, not just personal income, but I can compromise here in that I can get behing a 10% decrease in corporate taxation and a 2% decrease in luxury sales tax, with a likewise adjustment of the income tax code to balance that out. |
| Date | 21:58:04, May 18, 2008 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Tax Realignment and Simplification Proposal |
| Message | I differ with you on the corporate tax being compensated for by market forces. The problem is that the corporate tax is borne equally by all corporations in the marketplace, and thus it becomes a fixed cost of doing business, like the cost of the raw materials of making the product itself. If the costs are born equally by all market players, they can't be compensated for by the market. By contrast, a fine or fee, for example, will tend to be absorbed by a company because of market forces. This is so because competitive pressures will prevent the company from passing the fine or fee along to consumers. Think of it this way. Companies A & B both make and sell widgets. Company A gets slapped with a fine. If company A passes that fine along to consumers in the price of its goods, Company A will lose market share to Company B. Thus, Company A cannot pass the fine along to consumers. Consumers will simply go to Company B. Companies A & B are levied an equal tax. Because both must pay the tax, both must pass the cost along to consumers. In theory, one company could choose to eat the cost of the tax. But if it could choose to eat the cost of the tax, it probably would have lowered the price of its good already in order to pick up the other company's market share. Assuming you're not persuaded, I'll accept your compromise offer, since one way or another it's better than the current system which we believe substantially taxes the poor and middle class. |
| Date | 22:21:47, May 18, 2008 CET | From | Conservative Union | To | Debating the Tax Realignment and Simplification Proposal |
| Message | Gah. You can't cut taxes that dramatically, it's not soothing for the economy |
| Date | 21:15:44, May 23, 2008 CET | From | Democratic Rationalists (PrCoa) | To | Debating the Tax Realignment and Simplification Proposal |
| Message | Wha? The DRs are being accused of TOO LARGE of a TAX CUT!! It's the end times I tell ya! |
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Voting
| Vote | Seats | |||||||
| yes | Total Seats: 175 | |||||||
| no |
Total Seats: 563 | |||||||
| abstain | Total Seats: 12 |
| Random fact: Selucia is Particracy's modern take on Ancient Rome, located on the continent of Majatra. |
| Random quote: "I do not believe in the creed professed by the Jewish church, by the Roman church, by the Greek church, by the Turkish church, by the Protestant church, nor by any church that I know of. My own mind is my own church." - Thomas Paine |