NSG Senate Chamber [NSG Senate] - Version 3

[Belmaria]

Sorry, not the SPpT, you. You can edit the above post to include the original version of the bill.

Done.

Thank you

There is a problem with the government budget proposal. The bracket tax system is inherently flawed, as some individuals who receive raises will end up earning less money rather than more.

Example:

I am a construction worker making £30,000/year. I just got a raise and now make £31,000/year. Before, I paid £4,500 (15%) in taxes, leaving me with £25,500 for personal use. Now I pay £9,300 (30%) in taxes, leaving £21,700 for my own use. So I got a raise but actually lost a huge chunk of money. That's not right at all. The other budget uses a fairer system based on an algorithm that ensures that people do not suffer from this problem.

Just reposting to get back to debate

[Lamaredia]

Done.

Thank you

There is a problem with the government budget proposal. The bracket tax system is inherently flawed, as some individuals who receive raises will end up earning less money rather than more.

Example:

I am a construction worker making £30,000/year. I just got a raise and now make £31,000/year. Before, I paid £4,500 (15%) in taxes, leaving me with £25,500 for personal use. Now I pay £9,300 (30%) in taxes, leaving £21,700 for my own use. So I got a raise but actually lost a huge chunk of money. That's not right at all. The other budget uses a fairer system based on an algorithm that ensures that people do not suffer from this problem.

Just reposting to get back to debate

That seems to be a problem with the budget. Can you explain to me the formula that your budget uses? (OOC: I like maths, but some formulas are beyond me.)

[Belmaria]

Thank you


Just reposting to get back to debate

That seems to be a problem with the budget. Can you explain to me the formula that your budget uses? (OOC: I like maths, but some formulas are beyond me.)

Senator Schmidt has an application that can be used to calculate the amount of tax paid based on income. I will ask him to publish it here.

[The Saint James Islands]

There is a problem with the government budget proposal. The bracket tax system is inherently flawed, as some individuals who receive raises will end up earning less money rather than more.

Example:

I am a construction worker making £30,000/year. I just got a raise and now make £31,000/year. Before, I paid £4,500 (15%) in taxes, leaving me with £25,500 for personal use. Now I pay £9,300 (30%) in taxes, leaving £21,700 for my own use. So I got a raise but actually lost a huge chunk of money. That's not right at all. The other budget uses a fairer system based on an algorithm that ensures that people do not suffer from this problem.

Except that that's not how a bracket system works. Instead, you pay into all lower tax brackets before you pay into your last high tax bracket. You will never take home less pay because you got a raise. To use your own example:

When you make £30,000, your first £15,000 is taxed at 0%. Therefore, you pay zero income tax on it. Your next £15,000 is then taxed at 15%, meaning you owe 15% of £15,000 (not £30,000 like you assume) or £2250. This leaves you £27,750 for your own use.

When you receive your £1000 raise, you continue to pay into the first two brackets first before your new £1000 rolls over to the next bracket to be taxed at 30%. Therefore, you pay £300 plus the £2250 you paid before. You therefore owe £2550 and have £28,450 for personal use, more than you had before you got the raise.

[Lamaredia]

There is a problem with the government budget proposal. The bracket tax system is inherently flawed, as some individuals who receive raises will end up earning less money rather than more.

Example:

I am a construction worker making £30,000/year. I just got a raise and now make £31,000/year. Before, I paid £4,500 (15%) in taxes, leaving me with £25,500 for personal use. Now I pay £9,300 (30%) in taxes, leaving £21,700 for my own use. So I got a raise but actually lost a huge chunk of money. That's not right at all. The other budget uses a fairer system based on an algorithm that ensures that people do not suffer from this problem.

Except that that's not how a bracket system works. Instead, you pay into all lower tax brackets before you pay into your last high tax bracket. You will never take home less pay because you got a raise. To use your own example:

When you make £30,000, your first £15,000 is taxed at 0%. Therefore, you pay zero income tax on it. Your next £15,000 is then taxed at 15%, meaning you owe 15% of £15,000 (not £30,000 like you assume) or £2250. This leaves you £27,750 for your own use.

When you receive your £1000 raise, you continue to pay into the first two brackets first before your new £1000 rolls over to the next bracket to be taxed at 30%. Therefore, you pay £300 plus the £2250 you paid before. You therefore owe £2550 and have £28,450 for personal use, more than you had before you got the raise.

Oh, that makes sense.

[Ainin]

Done.

Thank you

There is a problem with the government budget proposal. The bracket tax system is inherently flawed, as some individuals who receive raises will end up earning less money rather than more.

Example:

I am a construction worker making £30,000/year. I just got a raise and now make £31,000/year. Before, I paid £4,500 (15%) in taxes, leaving me with £25,500 for personal use. Now I pay £9,300 (30%) in taxes, leaving £21,700 for my own use. So I got a raise but actually lost a huge chunk of money. That's not right at all. The other budget uses a fairer system based on an algorithm that ensures that people do not suffer from this problem.

Just reposting to get back to debate

Uhm...

Lolwat.

If you make £30,000/year, you get taxed 15% on your income between £ 15,000.00 and £ 30,000.00. The rest is tax-exempt.

If you make £31,000/year, you get taxed 30% on your income between £ 30,000.00 and £ 31,000.00. The rest is either taxed at 15% or 0%.

[Belmaria]

Thank you


Just reposting to get back to debate

Uhm...

Lolwat.

If you make £30,000/year, you get taxed 15% on your income between £ 15,000.00 and £ 30,000.00. The rest is tax-exempt.

If you make £31,000/year, you get taxed 30% on your income between £ 30,000.00 and £ 31,000.00. The rest is either taxed at 15% or 0%.

Oh I see. Sorry for the confusion

[Byzantium Imperial]

Those defense budgets are pathetic in both. Neither will be receiving my vote


Part 2: In the context of the Continuing budget resolution act (which we vote to fund current government funding status quo if no new budget is agreed on), what is the current government operating budget in effect as of now?

[The Nihilistic view]

Those defense budgets are pathetic in both. Neither will be receiving my vote

Yeah, How can I supply the Military with my products on that budget?

[Pesda]

I will vote against both. The government budget has too many problems, but the far right budget is worse.

[Dragomere]

I motion for the budgetary bills to return to discussion (with greater openness to discussion).

[New Bierstaat]

I will vote against both. The government budget has too many problems, but the far right budget is worse.

Far right? A top tax of 40% is far right? Business taxes higher than any nation in the developed world are far right?

[Belmaria]

Those defense budgets are pathetic in both. Neither will be receiving my vote

Yeah, How can I supply the Military with my products on that budget?

We will have more than enough funds for military use with a 15 billion GBP budget.

[Minarchist States]

We could raise tariffs...

[The Nihilistic view]

Yeah, How can I supply the Military with my products on that budget?

We will have more than enough funds for military use with a 15 billion GBP budget.

I'm being silly after the whole Feck up the last two days.

[Geilinor]

I will vote against both. The government budget has too many problems, but the far right budget is worse.

Far right? A top tax of 40% is far right? Business taxes higher than any nation in the developed world are far right?

Japan and some parts of the US are higher, due to their often inanely complicated tax systems.

[Pesda]

I will vote against both. The government budget has too many problems, but the far right budget is worse.

Far right? A top tax of 40% is far right? Business taxes higher than any nation in the developed world are far right?

The highest tax rate shall be 30%

Which is far right. No spending on health is far right. 25% top rate of business tax isn't that high. So, yes, it's far right, and will not recieve my vote.

[Belmaria]

Far right? A top tax of 40% is far right? Business taxes higher than any nation in the developed world are far right?

The highest tax rate shall be 30%

Which is far right. No spending on health is far right. 25% top rate of business tax isn't that high. So, yes, it's far right, and will not recieve my vote.

No spending on health? 30% cap rate? Which budget are you reading? Use the link on page 161.

[Pesda]

Which is far right. No spending on health is far right. 25% top rate of business tax isn't that high. So, yes, it's far right, and will not recieve my vote.

No spending on health? 30% cap rate? Which budget are you reading? Use the link on page 161.

I'm reading the link from the OP.

Oppositions don't propose budgets... There isn't an Opposition proposal anyway and it hasn't been submitted to the queue so it won't be voted on.

- Battlion

This has been amended:

Responsible Budget of 2013
Authors: Belmaria (LCP) New Bierstaat (LCP) Urgency: Severe SIMBEDS Category: Business and Finance Sponsors: Skeckoa (LCP) Central and Eastern Visayas (Ind)

Personal Taxation:
The following formula will be used to allocate tax rates to various income levels. The highest tax rate shall be 30%.
(Image)

Business Taxation:
The following formula illustrates the tax rates applied at various levels of business income The highest rate will be 25%.
t=.3-.25e^-(2.526x/1,000,000)
t = tax rate paid
x = business profit earned in the previous year

Spending allocation:
The following list outlines amounts of funding to be allocated to each area of government.
Defense - 10% (£25,241,582,638.50)
Welfare - 15% (£37,862,373,957.75)
Emergency Management - 15% (£37,862,373,957.75)
Administration - 5% (£12,620,791,319.25)
Education - 20% (£50,483,165,277)
Labor - 5% (£12,620,791,319.25)
Research and Environment - 5% (£12,620,791,319.25)
Infrastructure and Communications - 10% (£25,241,582,638.50)
Energy - 10% (£25,241,582,638.50)


Overall Figures:
Personal Income Tax Revenue: £144,422,034,907.03
Business Income Tax Revenue: £104,778,834,972.29
Tariff Revenue: £16,500,000,000
Total Revenue: £265,700,869,879

Expenditures: £252,415,826,385

Operating Surplus: £13,285,043,494

This was never submitted? Really? (outdated version. There was a fifth sponsor but I don't remember who it was)

[Great Nepal]

I will be voting for Responsible Budget of 2013.
Top rate on government proposal is freaking outrageous, and the spending in research by the government is pitiful. The budget purposed by government will lead to nothing but the nation being technological backwater with no science program or any significant business presence.

[Ainin]

Why does the Libertarian budget proposal use Revisionist English?

[Belmaria]

No spending on health? 30% cap rate? Which budget are you reading? Use the link on page 161.

I'm reading the link from the OP.

This was never submitted? Really? (outdated version. There was a fifth sponsor but I don't remember who it was)

Because that links to a quote, edits which have been made since said post was made are not included in that version. Here is an update version:

viewtopic.php?p=16556049#p16556049

[Minarchist States]

I will be voting for Responsible Budget of 2013.
Top rate on government proposal is freaking outrageous, and the spending in research by the government is pitiful. The budget purposed by government will lead to nothing but the nation being technological backwater with no science program or any significant business presence.

...on the other hand, technological backwater nations are a breeding ground for conservatism!

[Byzantium Imperial]

No spending on health? 30% cap rate? Which budget are you reading? Use the link on page 161.

I'm reading the link from the OP.

Wrong budget, thats the one with a decent defense budget.

[Pesda]

I'm reading the link from the OP.

Because that links to a quote, edits which have been made since said post was made are not included in that version. Here is an update version:

viewtopic.php?p=16556049#p16556049

Thank you, and apologies for the confusion.