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Bill: Closing the Deficit
Details
Submitted by[?]: Liberaalne Blokk
Status[?]: defeated
Votes: This is an ordinary bill. It requires more yes votes than no votes. This bill will not pass any sooner than the deadline.
Voting deadline: July 3489
Description[?]:
| Deficit would hurt small businesses, so as corporation tax so we would seek elimination/reduction of them. Katrina Falk MF His Majesty's Finance Minister |
Proposals
Article 1
Proposal[?] to change Tax percentage of the profit made by corporations.
Old value:: 18
Current: 45
Proposed: 5
Article 2
Proposal[?] to change Sales tax on luxury goods.
Old value:: 15
Current: 27
Proposed: 30
Debate
These messages have been posted to debate on this bill:
| Date | 11:07:39, May 22, 2013 CET | From | Rojalistiska Enhetspartiet | To | Debating the Closing the Deficit |
| Message | Mr. Chairman, the cause of the budget deficit is not insufficient tax revenue; it is unbelievably overspending which has completely overturned the fiscally responsible policies of the previous government. Linnea Frisk, Shadow Finance Minister and Deputy Opposition Leader |
| Date | 11:22:46, May 22, 2013 CET | From | Liberaalne Blokk | To | Debating the Closing the Deficit |
| Message | Mr Chairman Previous government wasn't near of fiscally responsible. They started this deficit mess and now when we try to fix it, they oppose it. Fiscal Irresponsiblity of RE kills me! Kartina Falk MF Finance Minister |
| Date | 12:04:58, May 22, 2013 CET | From | Rojalistiska Enhetspartiet | To | Debating the Closing the Deficit |
| Message | Mr. Chairman, that is a joke. The previous government had a budget of £74 billion. In the short time that this government has entered office, we have seen the government's size balloon first to £90 billion, and now, to £95 billion. In terms of deficits, the previous government's budget generally run a surplus. No budget under the last government ran a deficit of more than £4 billion. This government's first budget saw the deficit rise by £1 billion. Now it has doubled to £10 billion. I don't think that this government can claim to be fiscally responsible. The previous government, on the other hand, was consistently mindful of keeping a balanced budget. And for the current government to chastise the last for profligacy is ridiculous. Now that they're spending so much, it's perfectly reasonable to ask, what are they spending it on? Well, here's what they've been taking your money and wasting it for. Defence spending has gone up unnecessarily. Our country is more than secure enough with a £15 billion military. But this government wants to be militaristic - so much for their psalms to peace. Education spending has more than doubled - almost tripled, in fact. What for? Yes, schools cost a lost to run, but £18 billion? That is absolutely ridiculous. This government spends more than £5 billion on foreign affairs, compared to £3 billion under the last. Again, this is complete waste. Engaging with foreign countries is important, but overspending has never been a necessary part of strong diplomatic relations. On the other hand, there have, of course, been cuts. Compared with the last government's budget, health and social services spending has falled by £1 billion. Yes, they are abandoning the sick and the old and the unfortunate so that they can waste more money. This government is spending money where it isn't needed, and cutting spending where it is. I must also note that the government is very fond of playing with our income tax system. While under the previous, responsible government, the income tax burden was never much higher than £61 billion, and, in fact, under a series of budgets, fell eventually to less than £56 billion. The bottom rate was 23%, the top rate was 34%, and, what is more, nobody earning less than £3100 per annum had to pay any income tax. Now, the income tax burden has risen ridiculously by some £14 billion - to nearly £70 billion. The top rate has risen to 39%, which is damaging for job-creators. While, as I just said, we used to have a tax-free income of £3100, we now only have one of £2000. The tax rate paid by those earning £3100 is now a percent higher. The wealthy have been hurt with higher tax rates. The poor have been hurt by having to pay tax at all. And frankly, almost everyone in between has been negatively impacted by this government's recklessly irresponsible and, dare I say, regressive, policies. What's worse is that the government has been tampering with our income tax system as if it were some game. Now, the government proposes that corporations should not be made to shoulder their fair share of their tax burden - 18%, especially compared to the previous rate of 75%, is a very reasonable amount. Instead, the government wants to punish consumers by doubling the sales tax - doubling it. Has the government considered how much damage this would do to our economy? The cost of living would rise. We have nothing against big business, but we believe that they should make the contribution that they ought to make towards society, and that we shouldn't have consumers suffer being slapped with higher and higher taxes. A 30% sales tax is simply economically stupid, and unethical. The government says that we started this deficit mess. Really? They've created their £10 billion budget hole - every single penny of it. They've created an ever-expanding government which is more than 28% larger than before - yes, more than a quarter. They've ramped up the tax burden on the people, while thinking that corporations should have their tax rates cut to 5% from 18%. This government, in every field of policy, and in economic policy in particular, has utterly failed the Telamonese people. This is a failed government, a hopelessly incompetent government. Let's not solve the budget crisis by plying on more and more taxes. It's time that we cut the waste and unnecessary spending that this government is being so casual about. Linnea Frisk, Shadow Finance Minister and Deputy Opposition Leader |
| Date | 12:05:25, May 22, 2013 CET | From | Rojalistiska Enhetspartiet | To | Debating the Closing the Deficit |
| Message | OOC: Phew, that was fun. |
| Date | 14:01:44, May 22, 2013 CET | From | Socialistiska Forum | To | Debating the Closing the Deficit |
| Message | Mr Chairman, Minister Falk is wrong, doubling sales tax would hurt small businesses and consumption in general. We cannot support this proposal. Ingrid Larsson Vice Chancellor OOC: My God EEL, that Frisk speech is truly epic! |
| Date | 14:22:39, May 22, 2013 CET | From | Liberaalne Blokk | To | Debating the Closing the Deficit |
| Message | OOC:That speech was great |
| Date | 14:37:31, May 22, 2013 CET | From | Liberaalne Blokk | To | Debating the Closing the Deficit |
| Message | Mr Chairman, Now our children gets first class education, if opposed to great education than, I've nothing to say to you.This is a luxury tax increase not the general consumption tax so, don't misled the public, and if you continue to misled the public than, I will call a motion of censure for you. When you left the government, you've left a 4 billion budget deficit, you can't deny that and also stop continue to misled the public on that too. %75 corporation tax was absymal and so as this current level. We never say, we will shrink the government and unlike you, we kept our promises, your government, shrinked the government first time you have it than you expanded it and that cycle of shrinking and expanding goes on and on until we came to power.Your rule is the definition of incompetence and recklessness, the defence budget that you complain is your masterpiece, this is hypocracy, and helping the poor wherever they are is what we believe in and if you oppose to help the poor and needy that we have nothing to talk.Tax cuts and budget increase, yes that is responsible, all you have done is expanding the deficit while shrinking the economy. We seeked to fix the mess that we have got and carry on the deficit for a few years to help to grow the country and now this is the time for closing the deficit.Obstructionism of RE is amazing. Katrina Falk MF His Majesty's Finance Minister |
| Date | 11:28:49, May 23, 2013 CET | From | Rojalistiska Enhetspartiet | To | Debating the Closing the Deficit |
| Message | Mr. Chairman, censure me if you like. It's not going to stop me from exposing the colossal stupidity and irresponsibility of this government. The Finance Minister once again misleads the Telamonese people. When will this government come clean? When will this government finally admit that it has failed? There's no doubt that this government has been foolish and unwise when it comes to spending choices, and completely clueless as to the best way to fix the hole they've dug for themselves. There's a pithy saying that comes to mind right now: "if you find yourself in a hole, stop digging". Instead this government has started shovelling the dirt back in - and not only are they getting buried, we're getting buried. The Telamonese people are suffering because of this government's inability to look after its finances. Before I continue, though, let me thank the Vice-Chancellor for her support in this matter. I begin with the luxury tax. You know what is defined as a luxury good? Anything that is not a basic good, like food. That's right, if you buy a chair, that is apparently a "luxury good". If you buy a computer or a light bulb or soap or a frying pan, it is apprently a "luxury good", and you will be slapped with a 30% tax. That's not a small amount. I think that 15% is very reasonable, but simply, 30% is a steep tax and it is nothing less than mass extortion. This is not a tax on people who can necessarily pay. Everybody buys these goods, not just the wealthy. They are not basic, but they are fairly commonplace, and everyone will be hurt. The corporation tax is at 18%. Does the Finance Minister know what the average corporation tax is? Or is she too ignorant? Well, it's 22.4%. Not 18%, 22.4%. Our corporation tax is several percent lower than average. So no, I would very strongly contest the claim that our current level of corporation tax is abysmal. It's not. I believe that corporations ought to pay their fair share of our society's costs; the Finance Minister obviously thinks that consumers - ordinary people working hard to support themselves and their families, maybe save for a holiday or a retirement - should foot the bill, and not corporations with millions or billions of pounds who can actually afford it. As for the deficit, yes, we did leave a £4 billion deficit. That's a miniscule deficit, and it was necessary to better support our national economy. A £10 billion deficit is a completely different matter. That's far more - and the fact that the Finance Minister now criticises a £4 billion deficit when she created one two-and-a-half times that size is simply hypocritical and preposterous. Absolutely ridiculous, and she knows it. I'm not going to deny that we created a deficit, but that was a manageable deficit. This - this is just a prime example of spending going completely out of control, and a government which doesn't know how to close the deficit. I'll tell you why - cut spending, cut waste. Don't ramp up taxes and make people suffer. And we did not shrink the economy, mind you. We shrank government spending from what it was before. That's different. The previous government did not support overspending or big government which consumes this country. It's what we worked to throw off in 3480. I have great respect for Chancellor Bergstrom, and I won't let his achievements be undone by the incompetence of this failed government. Yes, our amount of spending did vary, but the Finance Minister must take into account the real world. It's not a fantasy world where you can spending as much as you like. Why don't we roll a few dice? The economy fluctuates - and what we spend on must change. The Finance Minister claims we don't want a first-class education. We do, but we don't believe that a great education must be accompanied by over-spending. If we were to follow her logic, why don't we spend all of GDP on education? That's a ridiculous and plainly moronic proposal. The government ought to spend as much as it needs to ensure that all children have the skills to get a job and live a full life. It should not spend a penny more, because that is the very definition of waste. And the government is now cutting health and social services spending where every single penny was needed. We need enough nurses and doctors to ensure everyone is getting satisfactory healthcare, but no, the sick are getting neglected. We need enough funding to ensure that everyone is supported by a humane state, but no, tough luck. This government doesn't care. You'll have to fend for yourself. The government claims that it came to office needing to "fix the mess that we got". Well, I'm here to burst your bubble of myopic ignorance. This government inherited an economy stronger and more vibrant than every before. This government inherited a reinforced public sector - lean, but effective - which was much better than the previous one, loaded with wate. This government inherited low taxes and a small national debt. If you think that that's a mess, there's something wrong with you. How is this government going to fix the mess which, mind you, they created? Every part of the quagmire we find ourselves in was created by this government. Every single part. Don't deny it, we all know that the last government was far more responsible than this one. Well, now that they've realised that running an unmanageable deficit isn't as good an idea as they used to think, they want to fix it not by cutting back waste and over-spending, but by taxing the people more and more and more. All the while, they're cutting taxes on big businesses as if they have no social obligations. That's why we're obstructing these measures. Not because we're obstructionist, it's because these measures are foolish and morally wrong. Linnea Frisk, Shadow Finance Minister and Deputy Opposition Leader |
| Date | 11:36:46, May 23, 2013 CET | From | Rojalistiska Enhetspartiet | To | Debating the Closing the Deficit |
| Message | OOC: I think Frisk has established a reputation for verbosity. |
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Voting
| Vote | Seats | ||
| yes |
Total Seats: 177 | ||
| no |
Total Seats: 216 | ||
| abstain |
Total Seats: 106 |
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