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Bill: Strategic Spending Review 2931
Details
Submitted by[?]: One Nation Conservative Party
Status[?]: passed
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 2932
Description[?]:
| The Strategic Spending Review proposes to build upon the foundations of the Economic Future Act by expanding public investment towards a final goal of 30% of GDP from the original figure of 9%. Aim of the SSR: The objective of Pontesi's most important SSR is to increase investment in the future of Pontesi's economy. Departments which are essential to economic growth and the personal development of the public will receive an additional 1.4 trillion PON of investment. The review reflects the lack of proper funding from government in areas of economic need for much of the country's history. With the loss of Gaduridos and the lack of involvement of Pontesian forces in any wars within the last century, the budget of the Ministry of Defence no longer reflects the needs of the country. This SSR takes place alongside this government's Strategic Defence Review. The policy of low taxation and low spending has been discredited. The Pontesian economy is languishing in a state of low development and progression. The SSR proposes the adoption of an entirely new economic outlook for the country: Fotheringhayism. The concept proposes medium-high levels of progressive income taxation combined with higher levels of indirect taxation on essentials, luxuries and corporation tax. The aim is to raise government spending to between 30 and 38% of GDP in order to foster economic growth and increase GDP. The Economic Future Act has demonstrated that the theory of Fotheringhayism is credible - GDP per capita increased by 684 PON within months of it passing into law. Case Study: On taking control of Gaduridos and Fotheringhay, the Imperial East Terra Company (IETC) slashed taxes and increased spending to 36% of GDP. The Company, for the next 6 decades, made only minor alterations to tax levels in order to maximise GDP per capita. At a level of expenditure beyond 38%, the Company discovered that the balance between taxation and spending became too biased towards taxation and thus GDP subsequently dropped. The IETC managed to quadruple GDP per capita. The same result is not expected to such an extent in Pontesi but the general theory ought to see a significant increase in GDP per capita. Conclusions of the SRR: - Increase public expenditure to 30% of GDP within 10 years. - Increase taxation primarily through increased income tax and a 15% tax on luxuries. - Reduce the budget for the Ministry of Defence from 600 billion PON to 475 billion PON. - Invest strategically in the future. - Increase investment in Education, Healthcare, Infrastructure, Agriculture, Trade and Industry, Technology, Tourism, Internal Affairs and Justice. - Hold a debate over the possibility of a 4% tax on essential items. |
Proposals
Article 1
Proposal[?] to change Sales tax on essential goods such as food and non-luxury clothing.
Old value:: 0
Current: 10
Proposed: 4
Article 2
Proposal[?] to change Sales tax on luxury goods.
Old value:: 8
Current: 25
Proposed: 15
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 |
| > 27,000 PON | 15% | 56,797,000,000 PON |
| > 38,000 PON | 27% | 216,617,000,000 PON |
| > 90,000 PON | 35% | 49,088,000,000 PON |
| > 110,000 PON | 45% | 47,428,000,000 PON | Total | 369,930,000,000 PON |
Debate
These messages have been posted to debate on this bill:
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| Vote | Seats | |||
| yes |
Total Seats: 315 | |||
| no | Total Seats: 0 | |||
| abstain | Total Seats: 0 |
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| Random quote: "Because democracy is not a spectator sport." - 2004 Democratic campaign slogan |