This press message was released by the Government of the Democratic Republic of Aloria.
Democratic Republic of Aloria
Office of the Prime Minister
2745 ECONOMIC REPORT
At the end of the year 2744, the Government of the Democratic Republic of Aloria announces that the country is under a deficit of 1,031,043,434 ALO. It is believed that it was an indirect effect of the reduction of the corporation tax from 55 to 25 percent. However, we believe that the reduction was more beneficial in the economy since it reduces the burden of corporations and allows for more production of goods.
Recently, President Michael O'Riley requested the Parliament to have a 1% increase in all income tax brackets, save for those under the 1 ALO - 5,000 ALO range. Thus, the tax brackets shall now be as follows:
1 ALO-4,999 ALO = 1%
5,000 ALO - 6,999 ALO = 11%
7,000 ALO - 8,999 ALO = 21%
9,000 ALO - 10,999 ALO = 31%
11,000 ALO - 12,999 ALO = 41%
13,000 ALO - above = 52%
A corporation tax increase of 1% is currently being voted on in Parliament.
According to members of the Democratic Centrist Party, this measure will give the nation "a surplus of almost 900 millions". Eight hundred million of the expected surplus have now been added for the funding of Health and Education to the benefit of the Alorian people. They also argue that the average person in Aloria earns around 4650 ALO, thus "the effect on the general population will be little to none."
We hope to be able to recover from the deficit by the end of this year and have a continued growth in the economy.
Signed,
Roel Paul
Prime Minister, Democratic Republic of AloriaSigned,
the Government of the Democratic Republic of Aloria