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Bill: Income tax proposal of November 2236
Details
Submitted by[?]: Liberty 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 pass as soon as the required yes votes are in, or will be defeated if unsufficient votes are reached on the deadline.
Voting deadline: July 2237
Description[?]:
| The Liberty Party propose to adjust the government's income tax policy to better address the economic situation of the Republic of Trigunia. |
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 |
| > 2,000 TRA | 19% | 43,835,000,000 TRA | Total | 43,835,000,000 TRA |
Debate
These messages have been posted to debate on this bill:
| Date | 02:42:48, June 03, 2006 CET | From |  Liberty Party | To | Debating the Income tax proposal of November 2236 |
| Message | We are collecting far more (TRA6.5B) than we are spending. We propose to return this surplus to the people by lowering income tax. We propose to keep the rate (19%) the same but to raise the starting threshold. This will serve to ensure that everyone (or at least everyone with an income of over TRA1,450/year) benefits from this tax cut. |
| Date | 20:40:27, June 03, 2006 CET | From | Progressive Party | To | Debating the Income tax proposal of November 2236 |
| Message | im not anglophone. what does treshold means? And will this tax cut benefit those with incomes below 1.450/year TRA? |
| Date | 22:38:35, June 03, 2006 CET | From | Liberty Party | To | Debating the Income tax proposal of November 2236 |
| Message | Threshold is the dividing line between two brackets. Previously, the income tax system worked as follows: all earnings under TRA1,430 was at 0%, all earnings over TRA1,430 was at 19%. This proposal moves that dividing line up from TRA1,430 to TRA2,000. Therefore, there is no impact on anyone earning less than TRA1,430 (they already paid no tax), and everyone earning above TRA1,430 will pay less tax. The benefit will be disproportionately on lower earners. For example, a person earning TRA2,000 per year before would have paid TRA108 per year in tax or an effective rate of 5.4%. A person earning TRA2,000pa after will pay TRA0pa (effective rate 0%) . A person earning TRA20,000pa before paid TRA3,528pa in tax (effective rate: 17.6%) will now pay TRA3,420pa (effective rate: 17.1%). A person earning TRA200,000 before paid TRA37,728pa in tax (effective rate: 18.9%) will now pay TRA37,620 (effective rate: 18.8%). Therefore this tax cut eliminates excess tax revenue (the money the government is raising but is not spending) by returning money to all taxpayers and concentrating it on the poorest taxpayers. |
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Voting
| Vote | Seats | |||||||
| yes |
Total Seats: 224 | |||||||
| no | Total Seats: 0 | |||||||
| abstain |
Total Seats: 331 |
| Random fact: Terra, the fictional world in which Particracy is set, consists of 8 continents: Artania, Dovani, Keris, Makon, Majatra, Seleya, Temania and Vascania. |
| Random quote: "The secret of freedom lies in educating people, whereas the secret of tyranny is in keeping them ignorant." - Maximilien Robespierre |