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Bill: Flat Tax 4249
Details
Submitted by[?]: Mordusia First!
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: January 4251
Description[?]:
| This tax plan is fair, everyone pays their fair share of taxes no matter what they earn. If I make 100,000MRD and my friend makes 50,000MRD I pay 5000MRD and my friend pays 2500 MRD. It is simple, the more you earn, the more you pay in tax. There is none of this "you make below 30,000MRD, so you don't have to pay tax" rubbish, they pay their fair share just as everyone else and they will still have plenty of cash. This tax plan will put more money into people's pockets. This plan is essentially a tax cut for our citizens. We are generating more money than we would with the current system and we all have more money in our pockets. This will allow people to put their money away and save it for investments, such stocks and bonds or opening a small business which will encourage economic growth. Before I opened my first business, a local real estate, I was paying thousands of denarius a year but then the government formed a tax cut and I was saving money. Because of those tax cuts, I invested more money into my business and now Grumsworth Enterprises is the biggest real estate company in Southern Seleya and its merger partner, Grumsworth Technology is one of the largest technology companies in Mordusia and is slowly expanding into other nations. This tax cut will be a good investment for the government and will encourage economic growth whilst people pay less tax. The Tea Party cares about the working class and is providing them with tax cuts to improve their lives and allow them to choose a better future for themselves and their families. Horace Grumsworth President of the Tea Party |
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 |
| > 1 MRD | 5% | 193,028,000,000 MRD | Total | 193,028,000,000 MRD |
Debate
These messages have been posted to debate on this bill:
| Date | 14:44:25, July 31, 2017 CET | From | Communist Party | To | Debating the Flat Tax 4249 |
| Message | Flat taxation is not fair. Why? Because progressive taxation enables government to redistribute wealth in order to help the most needy in society. This is a tax rise on working big class people who are already struggling to get by. This proposal benefits the rich and no one else. |
| Date | 22:24:43, July 31, 2017 CET | From | Mordusia First! | To | Debating the Flat Tax 4249 |
| Message | You are absolutely incorrect, a flat tax encourages people to work, the progressive tax does not. Under a flat tax, everyone is treated the same and everyone pays the same rate. It allows the rich to have more money in their pockets which can then be used to invest in their businesses, creating job opportunities and it encourages the poor to get jobs, work harder and to earn more so that they can pay taxes and have more money in their pockets leftover. The progressive tax system is flawed. Firstly, the rich are taxed more because of what reason? Maybe it's because they are smart enough to use their money for investment rather than other things such as entertainment or maybe they've just been working hard. Why should those contributing to our nation be penalised for their hard work? On the other hand, those earning too little to pay enough tax, are able to avoid taxation but why? Well the progressives believe that they do not have enough money to live freely, so effectively they need to stop paying taxes and use their money for entertainment and other things. However this actually gives them the idea to be lazy and not work so that they do not have to pay taxes and as their is no incentive to earn more ( because if they earned more, they would pay large taxes) unemployment levels increase and the economy will go down the drain. So effectively the flat tax system is fair and encourages people to contribute to society whilst the progressive tax system is completely unfair and will collapse our economy in the long run. Now you tell me which system is fairer and will spur economic growth. Horace Grumsworth President of the Tea Party |
| Date | 10:32:29, August 01, 2017 CET | From | Communist Party | To | Debating the Flat Tax 4249 |
| Message | The vast majority of nations have a progressive tax for hundreds of years, they haven't collapse, so where is your economic grounding and reasoning for this? Firstly you are forgetting that under a progressive tax system everyone does pay the same share of their income. So if you earn 30,000 MRD and your friend earns 50,000 MRD you both pay the same rate. Like wise if your other friend earned 150,000 MRD they would still pay the same tax based on the first income bracket (up to 55,000 MRD). This proposal will give a 3% effective tax cut to the wealthy (earning 150,000) whilst increasing taxes on those earning below the current tax threshold by an effective tax rate of 5%. I ask this house to think about those in our society who cannot afford to pay 5% of their wages, those who are in part time minimum wage jobs, single parents and those who are disabled and cannot find full time employment due to their personal circumstances. Finally I would like to question Horace's knowledge of taxation. I have worked in a Payroll role for nearly 6 years and in that time I have learned basics about taxation. Something which is missing from Horace's knowledge. He claims that cutting icnome taxes will enable more business investment, however we all know (or should know) that income and corporation taxes are separate by law. If a business owner pays himself 150,000 MRD he would receive an effective tax cut of 3%, however this doesn't get reinvested in the business as it is personal income. The only way this money could be re-invested is if he was to buy shares in the company, which makes zero sense as he already owns the company. Can you now see why income tax cuts, don't mean business growth. We already have a small tax economy, and figures are showing that higher tax economies are now performing better than ours. Leanne Plyd Leader of the MSP |
| Date | 11:49:51, August 01, 2017 CET | From | Mordusia First! | To | Debating the Flat Tax 4249 |
| Message | Madame Plyd, Here is why a progressive system is not fair compared with a flat system. Let's say that three friends (Bob, Gerald and Daniel) both have a wife, two kids, no debt and the same opportunities. They each work as bakers for the same wage: 25 MRD per hour. Although they were very similar, they had different plans. Bob chose to work 20 hours a week as he wanted to enjoy his life, Gerald worked 40 hours so that he could spend more time with his family and Daniel worked 60 hours a week so that his children could have a strong future. As well as this, Bob's wife did not work and looked after the kids, Gerald's wife worked 10 hours a week part-time as a chemist for 25,000 MRD and Daniel's wife worked full time as a car dealer for 50,000 MRD. Bob and Gerald put their money into the public Social Security system, whilst Daniel put money away each month and invested into stocks and bonds. Bob made 25,000 MRD per year, Gerald and his wife made 75,000 MRD a year whilst Daniel made 150,000 MRD a year. Soon it was tax time and the three friends recieved their income tax forms. Bob payed nothing, Gerald payed 5250 MRD and had 69,750 MRD left over whilst Daniel payed 22,500 MRD and had 127, 500 left over. One year later the tax system changed to the proposal being made and the three friends received their tax forms. Bob payed a mere 1250 MRD and had 23,750 MRD left over, Gerald payed 3750 MRD and had 71,250 MRD left over and Daniel payed 7500 MRD and had 142,500 MRD left over. Ms. Plyd, you are clearly exaggerating how "greedy" this system is. Everyone who lives, has a job and earns money should pay the government taxes and those who use their money wisely and invest in other things or work harder than others should not be penalised. In Bob's case, he payed a mere 1250 MRD in taxes and "surprisingly" he still had a majority of his money left over. People can easily afford a 5% tax and if they wish to have more money left over, this tax will provide them with the incentive to work harder and earn more. Ms. Plyd has made also made up some mumbo-jumbo nonsense about different people not being able to afford this tax but they can. Teenagers working in minimum wage jobs can pay 5% out of the average 3000 MRD per year (2850) MRD left over, single parents get child benefit under the social services plan and can easily pay some of that back, disabled people get government help and extra money from the government and can give some of that back without any problems and those who cannot find employment are given unemployment benefits for two months and in that time they should find a job easily with the help of the government. A 5% tax can easily be paid and those who can't are obviously homeless people who should be getting government help. And finally, I would like to question Leanne's knowledge of business. Just because someone owns a business does not mean they a rich and can run a business smoothly without sacrifices. I have owned two large, successful businesses for 25 years and Leanne has probably never run a local store. I know that income tax cuts help businesses. Many business owners have to put their own salaries into their businesses to keep it running otherwise they will go bankrupt and this proposal will make it easier. If I pay myself 150,000 MRD per year and I pay the regular tax I would have 127,000 MRD left over and at least 45,000 MRD will go back into my business to keep it running, so effectively I would have around 82,000 MRD. Under my proposal I would have 142,000 left over and investing the same amount into my business would leave me with 93,000 and I may be able to invest more into my business. Income tax cuts assist small businesses as the owners can put more of their income back into the business and could use that to hire more workers, purchase more materials to make more products or increase advertising which will all contribute to the economy. This tax proposal will benefit Mordusia tremendously and is fair to all including the working class. Horace Grumsworth President of the Tea Party |
| Date | 15:09:42, August 01, 2017 CET | From | Communist Party | To | Debating the Flat Tax 4249 |
| Message | I have spelt it out for Mr Grumsworth. If he chooses to cut taxes for the rich and hike them on the poor thats his choice. We will not support it. Facts are 3% cut for the wealthiest and 5% hike for the poorest. Shameful. Putting your income into a business must mean you have chosen to take a pay cut, which in turn means it was never your income and has nothing to do with income taxation. Leanne Plyd Leader of the MSP |
| Date | 15:11:36, August 01, 2017 CET | From | Communist Party | To | Debating the Flat Tax 4249 |
| Message | You are asking for people to pay 5% which they dont currently pay. It will push people onto the streets in many cases.... I despair. *Leanne stands up and storms out of congress, followed by her party* Leanne Plyd Leader of the MSP |
| Date | 16:40:12, August 01, 2017 CET | From | Statesmen of Mordusia for Self Reliance | To | Debating the Flat Tax 4249 |
| Message | We support this plan |
| Date | 22:10:58, August 01, 2017 CET | From | Mordusia First! | To | Debating the Flat Tax 4249 |
| Message | Mr. Speaker, This is like the fifth time Ms. Plyd has thrown a tantrum and left Congress in a fit merely because she knows she's getting defeated in our debates. As well as that she continues to cause disruption and often causes Congress to end much earlier because of these tantrums. I will put this proposal to vote and then I will be holding a conference for all members of the Tea Party. *Horace stands up, wishes the Congress a goodnight and walks out of Congress." Horace Grumsworth President of the Tea Party |
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Voting
| Vote | Seats | ||||
| yes |
Total Seats: 455 | ||||
| no |
Total Seats: 179 | ||||
| abstain |
Total Seats: 116 |
| Random fact: Zardugal is a nation based on the old Byzantine Empire, with a modern twist and the Esperanto language. Zardugal is located on the continent of Majatra. |
| Random quote: "I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical." - Thomas Jefferson |