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Bill: tax reform proposal of September 3517
Details
Submitted by[?]: Minarchist League of Rutania
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: November 3518
Description[?]:
| The Rutanian Liberty Party propose to adjust the government's tax policy to better address the economic situation of the Commonwealth of Rutania. This bill more fairly distributes income taxes than the current system. The massive increase in percentage between the 3000 bracket and the 4000 bracket was built for those who make less, to actually have more money than those who make more, after taxes. Middle class Rutanians will no longer have to suffer brutally high income taxes. The new and higher sales taxes will somewhat make up for the loss in revenue from lower income taxes. |
Proposals
Article 1
Proposal[?] to change Sales tax on essential goods such as food and non-luxury clothing.
Old value:: 0
Current: 20
Proposed: 4
Article 2
Proposal[?] to change Sales tax on luxury goods.
Old value:: 5
Current: 33
Proposed: 12
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 |
| > 2,500 RUT | 12% | 12,316,000,000 RUT |
| > 5,000 RUT | 24% | 11,065,000,000 RUT |
| > 7,500 RUT | 36% | 7,439,000,000 RUT |
| > 10,000 RUT | 48% | 8,435,000,000 RUT | Total | 39,255,000,000 RUT |
Debate
These messages have been posted to debate on this bill:
| Date | 22:09:02, July 19, 2013 CET | From | Capitalist Working Families | To | Debating the tax reform proposal of September 3517 |
| Message | (1) This is a REGRESSIVE tax as it REDUCES the tax on the wealthy while RAISING the taxes that people in the bottom bracket have to pay from 8 to 12%, a 4% increase PLUS it RAISES sales taxes which will DIS-proportionately impacted the working poor who do all of the aggregate spending in the economy. (2) However, we WOULD be willing to support a cut in the TOP tax rate from 48 to 38% while ELIMINATING the income tax for the BOTTOM 3 brackets. --Asia L. Wright, Minister of Finance |
| Date | 23:13:38, July 19, 2013 CET | From | Minarchist League of Rutania | To | Debating the tax reform proposal of September 3517 |
| Message | Mr. Speaker, The percentages increase for higher brackets, which by definition is progressive, not regressive. Also, this proposal actually decreases the tax burden on most Rutanians. The only group that has higher taxes is the people that make between 2500 and 3000 RUT. It even eliminates income tax for those who make between 1500 and 2500 RUT. Also, the wealthiest Rutanians only get a 1% tax cut; this tax cut is targeted at the middle class, which the tax burden is reduced by as much as 13%. The 4% sales tax on non-luxury is miniscule. That is 4 cents on every Ruta. This is only a third of the proposed sales tax on luxury goods, which essentially increases taxes on the wealthy. In addition, what you are proposing is unfeasible. This would generate very little revenue and would require massive spending cuts to all ministries, much more than we have already proposed. William Stanton Chairman, RLP |
| Date | 16:27:56, July 20, 2013 CET | From | Urban Party of Rutania | To | Debating the tax reform proposal of September 3517 |
| Message | Mr. Speaker, The UPR will not support any changes to the current tax bracket nor will we support the establishment of a sales tax or the raising of the luxury tax. Marta Wilson UPR Congressional Leader |
| Date | 20:58:16, July 20, 2013 CET | From | National Purity Union | To | Debating the tax reform proposal of September 3517 |
| Message | Mr. Speaker, The decision to levy a sales tax on basic goods is irresponsible, unfair, and damaging to the economy. It is especially irresponsible to propose a bill such as this without providing an analysis of the effect of the totality of the changes on revenue; that is, whether or not the tax overhaul will be revenue neutral, increasing, or decreasing. -Ronald Silvermage, NPU Parliamentary Observer |
| Date | 22:53:31, July 20, 2013 CET | From | Capitalist Working Families | To | Debating the tax reform proposal of September 3517 |
| Message | Mr. Stanton, We RE-viewed the income tax plan and we now support. However, we are opposed to the Sales tax on NON-essential goods while supporting the sales tax of 12% on LUXURY goods. So, as of NOW, we will vote against but if you RE-submit the income tax proposal, we will support. Thanks and take care. --Asia L. Wright, Minister of Finance |
| Date | 10:42:55, July 21, 2013 CET | From | Democratic Union | To | Debating the tax reform proposal of September 3517 |
| Message | Mr Speaker, I don't see it bad to pay more taxes, but this taxes must be used and given back to me in the form of services. It's just stupid that in a situation of surplus, we reduce the expenses and raise the taxes. My party will only support this bill if you raise the social expenses. Honestly, I don't want my money to be stored in the National Reserve. I want my money to be valuable. James London, DU Treasurer |
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Voting
| Vote | Seats | ||||||
| yes | Total Seats: 117 | ||||||
| no |
Total Seats: 285 | ||||||
| abstain | Total Seats: 153 |
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