Amendments to the Primary Revenue Act
Author: Sen. Franz Haas (Bleckonia | FCP), certain text borrowed from Sen. Sebastián Luc Morales (Atlanticatia | DemLeft)
Sponsors: Sen. Chaz Carrera (Vedastia | FCP)
The definition of 'taxable income' shall be amended to read "Taxable income - income from employment, wages, salaries, commissions, self-employment earnings, trusts, rents, dividends, interest, annuities, and royalties."
The definition of 'unearned income' shall be eliminated.
Paragraph a of section 1 shall be amended to read
"a) The personal income tax shall be levied on all 'taxable income' of households at the following marginal rates:All households with total income above the poverty line are eligible to receive a standard tax deduction of $100 for every individual in the household less one; the total standard deduction for a household may not exceed $500, and the standard tax deduction may not result in a negative tax payment, regardless of how many individuals reside in a household."
- Households with total taxable income between $0 and the poverty line per annum shall be eligible for a transfer payment equal to one-half the difference between the amount of taxable income and the poverty line.
- Taxable income above the poverty line per annum shall be taxed at 14%.
The following paragraphs shall be added to section 2:
"b) Any individual is eligible to opt out of the Universal Social Contribution and not receive social security benefits; employers, however, are required to offer all employees the option of contributing to Universal Social Contribution and may not incentivize opting out.
c) If an individual opts out of the Universal Social Contribution, neither the employee nor the employer shall be required to pay the Universal Social Contribution."
Paragraph a of section 3 shall be amended to read
"a) Corporate tax shall be levied on all worldwide corporate profits, at the following marginal rates:
- Corporate profits shall be taxed at a rate of 10%"
In paragraph b of section 4, "$0.50" shall be amended to read "$0.12"; "$1.89" shall be amended to read "$0.4536."
Paragraphs a, c, and d of section 4 shall be eliminated.
The heading of section 5 shall be amended to read "§ 5 - Capital Gains Tax".
Paragraph a of section 5 shall be amended to read
"a) The Capital Gains tax shall be levied on all capital gains of individuals at a marginal rate of 5%."
Paragraph b of section 5 shall be eliminated.
The words "Unearned Income Tax" shall be replaced with "Capital Gains Tax."
Now legal. Some of the rates have been adjusted, and a worker earning the median income would pay the same amount as under the Government's proposal. However, the other parts of the bill ensure simplicity and that the overall tax burden on the average citizen will be reduced.
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