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Bill: Tax Code Reform
Details
Submitted by[?]: Grand National Party
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: May 3525
Description[?]:
| Mr Speaker, as we have proposed ahead of the elections, we are committed to pushing the tax burden on every citizen's regular income below 40%, which we aim to do by eliminating the top two tax brackets for those earning > 54,450 DRA (41%) and > 62,400 DRA (44%). These will be replaced by a new top tax rate of 39% for incomes > 47,100 DRA, one percent higher than in the previous system. These changes will result in an estimated loss of revenue of 38,115,526,659 DRA, which we aim to compensate with an increase in the sales tax on luxury goods by 3%, which will bring in 3,358,536,936 of new revenue. Additionally, we propose the introduction of a very modest general sales tax of around three percent. Based on the revenue this will bring in, the remaining losses will be counter-acted by sensible budget cuts so that the deficit will not experience an overall growth. Further simplifications of the tax code, especially regarding the rates paid by the middle-class, might be added in the future if there is enough support for this path the ministry is willing to go. Lawrence Sinclair MP Member for Loren Finance Minister (designate) |
Proposals
Article 1
Proposal[?] to change Sales tax on essential goods such as food and non-luxury clothing.
Old value:: 0
Current: 0
Proposed: 3
Article 2
Proposal[?] to change Sales tax on luxury goods.
Old value:: 15
Current: 5
Proposed: 18
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 |
| > 7,200 DRA | 14% | 31,432,000,000 DRA |
| > 11,100 DRA | 17% | 44,040,000,000 DRA |
| > 15,600 DRA | 20% | 43,176,000,000 DRA |
| > 19,350 DRA | 23% | 57,597,000,000 DRA |
| > 23,700 DRA | 26% | 74,090,000,000 DRA |
| > 28,650 DRA | 29% | 85,784,000,000 DRA |
| > 34,200 DRA | 32% | 80,739,000,000 DRA |
| > 40,350 DRA | 35% | 81,176,000,000 DRA |
| > 47,100 DRA | 39% | 435,352,000,000 DRA | Total | 933,386,000,000 DRA |
Debate
These messages have been posted to debate on this bill:
| Date | 04:05:04, August 02, 2013 CET | From | Phillipsian Party of Dranland | To | Debating the Tax Code Reform |
| Message | We support the increase on the grounds that it would raise revenue for vital government services. -Caroline Ortega, Leader of the Phillipsian Party |
| Date | 07:19:18, August 02, 2013 CET | From | Popular Action Party 인기있는 행동 | To | Debating the Tax Code Reform |
| Message | Mr Speaker, We strongly disagree with Article 1 and 2 which would have the burden of tax fall heavier on the lower middle class while Mr Sinclair lowers the burden on his rich friends. Why should luxurious items be placed even further out o the reach of the working man? We see this a declaration of class warfare and warn the Government that we will not sit idly by while this takes place. Jaume Viana MP BCB Finance Critic Member for Valdor |
| Date | 12:19:38, August 02, 2013 CET | From | Grand National Party | To | Debating the Tax Code Reform |
| Message | Mr Speaker, these accusations are ridiculous. What we are trying to do is seeking support beyond the RFR-PP alliance with this balanced approach. I have explicitly stated that we are open to tax adjustments for the middle class in particular, and if the BCB is committed to such a policy they should propose exactly that so that it can be included in this bill. What we will not agree to, however, is a one-sided tax-the-rich-approach, because our objective is to lower income taxes comprehensively and not through redistribution between top and bottom tax brackets. Lawrence Sinclair MP Member for Loren Finance Minister |
| Date | 15:48:58, August 02, 2013 CET | From | Popular Action Party 인기있는 행동 | To | Debating the Tax Code Reform |
| Message | Mr Speaker, There is nothing balanced here, the burden of taxation is shifting from rich to poor and middle class since these will get a higher tax burden. If the Finance Minister proposed to just cut taxes cleanly, then no one would accuse anyone of this (shifting the burden). The next step of this 'torture the poor' plan undoubtedly will be to cut funding to basic services with traditional RFR-PP scissor favourites such as healthcare spending no doubt at the fore front thus making a true double whammer, higher costs for basic goods and poor services too. We propose that the Government raise the rates on those with bigger pockets and cut spending only in areas such foreign aid and so called environmental spending. We will however give the coalition the benefit of a doubt and wait to see the rest of the Minister's programme. Jaume Viana MP BCB Finance Critic Member for Valdor |
| Date | 16:34:40, August 02, 2013 CET | From | Grand National Party | To | Debating the Tax Code Reform |
| Message | Mr Speaker, higher costs for everyday expenses is what we aim to reduce with our fiscal agenda. The corporate tax cut was a first step to do so, and unleashing additional capital by reducing the tax burden on those who can invest in productive ventures is a second measure that will help us to achieve this goal. Before we proceed to assess whether we must implement additional spending cuts, we should await how much revenue will be acquired the general sales tax. We are confident that in the end we can restrict reductions in expenditure to departments such as ecology, where both RFR and BCB seem to recognize a lot of squandering of tax money that can be halted without negative effects on the economy and the cost of living. Lawrence Sinclair MP Member for Loren Finance Minister |
| Date | 05:16:13, August 03, 2013 CET | From | Democratic Progressive Party | To | Debating the Tax Code Reform |
| Message | Mr. Speaker, we feel that it is unconscionable for the government to reduce the burden on the wealthy while the poor have no corresponding relief from their tax burden. Furthermore, this budget will result in a huge deficit which is absolutely unacceptable and, given the RfR's insistence of fiscal responsibility, rather hypocritical. The only way out of this situation is either to ask the wealthy to pay their fair share towards the maintainence of a just and orderly society, which we prefer, or to implement savage budget cuts. These cuts to the bone, which we expect will shortly be introduced onto the floor of Parliament, will adversely impact the standard of living of all Dranians, but, most concerningly, the vulnerable and disadvantaged will be denied access to the services that they are entitled to. Yuko Asukai MP DPP Chair |
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Voting
| Vote | Seats | |||||
| yes | Total Seats: 168 | |||||
| no |
Total Seats: 231 | |||||
| abstain | Total Seats: 0 |
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