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Bill: Income tax proposal of June 2932
Details
Submitted by[?]: Republican Party of Jakania
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: February 2933
Description[?]:
| Important tax cut to revitalize the economy due to market fluctuations. We will deal with the deficit in a long term perspective; we've already got reserves to pay these debts. |
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 |
| > 5,000 JAK | 8% | 69,341,000,000 JAK |
| > 20,000 JAK | 10% | 52,071,000,000 JAK |
| > 30,000 JAK | 11% | 71,176,000,000 JAK |
| > 50,000 JAK | 12% | 101,542,000,000 JAK | Total | 294,130,000,000 JAK |
Debate
These messages have been posted to debate on this bill:
| Date | 23:31:17, May 02, 2010 CET | From |  Socialist Peoples Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | Tax cuts for the rich few,. |
| Date | 00:55:51, May 03, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | How can you afford to cut taxes when we have a massive deficit? This government is trying to shamefully buy votes at the expense of the economy. -John Biggins Alliance Leader |
| Date | 10:07:14, May 03, 2010 CET | From | Republican Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | "When you attempt to attack or lay forth some arguments, make sure they actually are based in facts. First of all, we have reserves of close to 8 trillion, we were running gigantic surpluses. Second of all, what is classified as poor in this country is 20,000, if you'd look at the statistics, that's the lowest you can get. That we're cutting taxes on middle class people and poor people can hardly be 'tax cuts for the rich few'. Third, we're in a situation where the economy is barely moving due to market fluctuations across Terra, and it's necessary that we follow common sense economics now of running deficits when we have the money to do it and restore fiscal balance when the economy can handle it." Abraham Goldfarb Minister of Finance |
| Date | 14:10:51, May 03, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | We can handle it now. The only way to generate growth is to invest in things such as Science and Technology, Industry and Transport and Agriculture. That cannot be done because (a) we have a bloated defence budget and (b) taxes are far too low for the rich. If we taxed the richest (120,000) at a rate of 40% (which most OECD economies do - in fact they tax them higher) and raised taxes generally across the board past the 50,000 bracket (which wouldn't harm the poor) and slashed defence spending we could have a healthy surplus tommorrow. -John Halligan |
| Date | 14:10:51, May 03, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | We can handle it now. The only way to generate growth is to invest in things such as Science and Technology, Industry and Transport and Agriculture. That cannot be done because (a) we have a bloated defence budget and (b) taxes are far too low for the rich. If we taxed the richest (120,000) at a rate of 40% (which most OECD economies do - in fact they tax them higher) and raised taxes generally across the board past the 50,000 bracket (which wouldn't harm the poor) and slashed defence spending we could have a healthy surplus tommorrow. -John Halligan |
| Date | 15:25:32, May 03, 2010 CET | From | Republican Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | Growth is not achieved through any higher budgets for the S&T. We've already made huge investments there, and because of our low taxes private initiatives are strong in this country. Bloated defense budget, yes, it's bloated at the moment, and we've opened negotiations with the socialist bloc, unfortunately, you're not willing to compromise in any shape or form so it's at a stand still. Taxes are not too low, they're just fine, and we're stimulating to further economic growth to cutting taxes. Recently, our Jakania went through horrible bubbles caused by international asset loan finances. People lost their jobs and we as a government had the responsibility to properly create growth to ensure jobs for our people. 40% tax on the rich (120,000) would generate about 100 bn if you created that bracket right now. It's not sufficient at all, you can generate loads more by increasing sales taxes just a bit or few percentage points on upper middle class. The deficit is not contagious. We've saved up for these rainy days, and it's a point to that; namely that we can use more money and cut taxes when the days are bad. Abraham Goldfarb Minister of Finance ooc: OECD doesn't exist in Terra. |
| Date | 14:02:50, May 04, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | 40% taxes on the richest earners is just the start of our plan. There would be new brackets created which would generate far more revenue. And yes, growth is achieved through investments in things like infrastructure, R&D and Science (tried and proven - I was in Cobura a while back and one party there controlled the Finance Ministry and was able to generate huge growth through investment in these areas - 8% I believe at one point.) |
| Date | 14:27:03, May 04, 2010 CET | From | Republican Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | That comes from more spending in GDP (government + consumption + investments + net exports) it's not growth in the economy; it's growth in the government spending. |
| Date | 14:37:52, May 04, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | That's true. But so is all growth on Particracy. You can't really simulate a proper economy on this thing! |
| Date | 14:38:24, May 04, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | I take that back - some growth is fuelled by population increases. |
| Date | 18:02:40, May 04, 2010 CET | From | Republican Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | You can fuel growth by tax cuts. Income tax cuts are the most effective. |
| Date | 23:36:06, May 04, 2010 CET | From | The Alliance | To | Debating the Income tax proposal of June 2932 |
| Message | (OOC: In real life yes - but firstly, we don't have inflation on this game and secondly, I haven't seen income tax cuts ever stimulating growth.) |
| Date | 00:10:03, May 05, 2010 CET | From | Republican Party of Jakania | To | Debating the Income tax proposal of June 2932 |
| Message | (OOC: Don't get into an inflation debate by that approach lol. Tax cuts: Then you haven't played this game sufficiently, or looked at the numbers. Tax cuts do IG stimulate growth too. No kidding around there. They're not as effective as boosting government spending, but they do get growth in GDP.) |
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Voting
| Vote | Seats | |||
| yes | Total Seats: 127 | |||
| no | Total Seats: 0 | |||
| abstain |
Total Seats: 123 |
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