NSG Senate Chamber: I came, I saw, I cleaned up after myself

[Gallifrey Secundaria]

"It's more of a message, that if you want unnecessarily gaudy cars, then you must be ready to pay more for it."

"What is it the concern of the government if someone buys a gaudy car? Do the rich have to live the same lifestyle as the poor?"

"No, they don't. But neither do they need to sit on millions of (LC) like their counterparts in the US."

[Bleckonia]

"What is it the concern of the government if someone buys a gaudy car? Do the rich have to live the same lifestyle as the poor?"

"No, they don't. But neither do they need to sit on millions of (LC) like their counterparts in the US."

Again, what is it your concern what the rich choose to do with their money? Every dollar that a rich person puts in savings translates into a dollar of investment, so their " sitting on money" isn't harmful.

[Gallifrey Secundaria]

"No, they don't. But neither do they need to sit on millions of (LC) like their counterparts in the US."

Again, what is it your concern what the rich choose to do with their money? Every dollar that a rich person puts in savings translates into a dollar of investment, so their " sitting on money" isn't harmful.

"That has been seen to be false on a multitude of occasions. Today almost half of the worlds resources are owned by the 1%. It can be seen that the rich aren't necessarily investing more due to the amount of money that the fat cats sit on."

[The Sarian]

"What is it the concern of the government if someone buys a gaudy car? Do the rich have to live the same lifestyle as the poor?"

"No, they don't. But neither do they need to sit on millions of (LC) like their counterparts in the US."

"Can someone point out to the Honourable Member that this is not the US, comparing our newly democratic, Central American nation to one of the world's largest economies is just ridiculous."

[The Nihilistic view]

My amendment to this bill (if it passes) will CUT taxes on the working class. Observe:

"Let's look at the average change in income tax owed for an AVERAGE household, not for the Government's cherry-picked numbers."

How Calaverdean income tax bills for an average household would change under the Opposition's plan, compared to the Ministry of Finance's plan:
Assuming $5000 is the poverty line.
Assuming the average household size is 4 (about the average size in most of Latin America and the Caribbean).
Including the universal social contribution.

Income of $8,000:
- Ministry of Finance tax proposal: $56 tax owed (0.7%)
- Opposition tax proposal: $20 tax owed (0.25%)
Decrease of 64%.

Income of $15,000
- Ministry of Finance tax proposal: $1,449 tax owed (9.66%)
- Opposition tax proposal: $1,100 tax owed (7.33%)
Decrease of 24%.

My plan, unlike the opposition, actually takes into account the fact that larger households need to pay less in taxes. Also, keep in mind that my plan allows for transfer payments to the poorest Calaverdeans.

"ORDER ORDER

Is the Honourable Gentleman proposing an amendment now?"

[Gallifrey Secundaria]

"No, they don't. But neither do they need to sit on millions of (LC) like their counterparts in the US."

"Can someone point out to the Honourable Member that this is not the US, comparing our newly democratic, Central American nation to one of the world's largest economies is just ridiculous."

"How is it so? Enacting the same exact policies that caused the American 1% to gain more and more money, at the cost of the lower- and middle class, will, eventually, lead to the same exact situation that they have there. The rich are keeping billions of money in an offshore bank account, not investing it, just sitting on it. The middle class stagnates, and eventually dies. The lower class is sent further & further into poverty. That is not a country that I want to live in."

[Bleckonia]

Again, what is it your concern what the rich choose to do with their money? Every dollar that a rich person puts in savings translates into a dollar of investment, so their " sitting on money" isn't harmful.

"That has been seen to be false on a multitude of occasions. Today almost half of the worlds resources are owned by the 1%. It can be seen that the rich aren't necessarily investing more due to the amount of money that the fat cats sit on."

Take Macroeconomics 101 and you'll learn about what economists call the Savings Identity.

[Bleckonia]

My amendment to this bill (if it passes) will CUT taxes on the working class. Observe:

"Let's look at the average change in income tax owed for an AVERAGE household, not for the Government's cherry-picked numbers."

How Calaverdean income tax bills for an average household would change under the Opposition's plan, compared to the Ministry of Finance's plan:
Assuming $5000 is the poverty line.
Assuming the average household size is 4 (about the average size in most of Latin America and the Caribbean).
Including the universal social contribution.

Income of $8,000:
- Ministry of Finance tax proposal: $56 tax owed (0.7%)
- Opposition tax proposal: $20 tax owed (0.25%)
Decrease of 64%.

Income of $15,000
- Ministry of Finance tax proposal: $1,449 tax owed (9.66%)
- Opposition tax proposal: $1,100 tax owed (7.33%)
Decrease of 24%.

My plan, unlike the opposition, actually takes into account the fact that larger households need to pay less in taxes. Also, keep in mind that my plan allows for transfer payments to the poorest Calaverdeans.

"ORDER ORDER

Is the Honourable Gentleman proposing an amendment now?"

I am.

[Gallifrey Secundaria]

"That has been seen to be false on a multitude of occasions. Today almost half of the worlds resources are owned by the 1%. It can be seen that the rich aren't necessarily investing more due to the amount of money that the fat cats sit on."

Take Macroeconomics 101 and you'll learn about what economists call the Savings Identity.

"And yet, where is this magic investment which you so loudly speak of? Can you demonstrate as to where all this money goes, if not into offshore saving accounts where it will most likely never see the light of day again?"

[The Nihilistic view]

"ORDER ORDER

Is the Honourable Gentleman proposing an amendment now?"

I am.

"Let us see the full amendment to the bill so we may be able to ask if the amendment is friendly."

[Bleckonia]

Take Macroeconomics 101 and you'll learn about what economists call the Savings Identity.

"And yet, where is this magic investment which you so loudly speak of? Can you demonstrate as to where all this money goes, if not into offshore saving accounts where it will most likely never see the light of day again?"

Basically, the savings go into the financial market, where they will be loaned out again and used as investment. Again, look up the Savings Identity.

[Gallifrey Secundaria]

"And yet, where is this magic investment which you so loudly speak of? Can you demonstrate as to where all this money goes, if not into offshore saving accounts where it will most likely never see the light of day again?"

Basically, the savings go into the financial market, where they will be loaned out again and used as investment. Again, look up the Savings Identity.

"Already have. I will once again use the US as an example, where policies that are the most like yours were implemented under President Ronald Reagan. After the implementation, the US middle class was almost destroyed. The rich got extremely much more rich, while the poor got poorer, and was more of a "trickle-up" scenario. The economy stagnated, compared to when taxes on the rich were increased."

[Bleckonia]

I am.

"Let us see the full amendment to the bill so we may be able to ask if the amendment is friendly."

http://forum.nationstates.net/viewtopic.php?f=25&t=323446&start=3577

[The Nihilistic view]

Take Macroeconomics 101 and you'll learn about what economists call the Savings Identity.

"And yet, where is this magic investment which you so loudly speak of? Can you demonstrate as to where all this money goes, if not into offshore saving accounts where it will most likely never see the light of day again?"

"Where do you think banks and other financial institutions get the money they loan out to individuals companies and governments? Yes that would be the money that supposedly never sees the light of day. There are plenty of meritorious arguments with which to defend the bill but pretending money saved in banks does not get reinvested in the economy is not one of them. "

[New Werpland]

bla bla bla ignore this

[The Nihilistic view]

"Let us see the full amendment to the bill so we may be able to ask if the amendment is friendly."

http://forum.nationstates.net/viewtopic.php?f=25&t=323446&start=3577

"ORDER

Mr Morales, is the amendment friendly?"

[Bleckonia]

Basically, the savings go into the financial market, where they will be loaned out again and used as investment. Again, look up the Savings Identity.

"Already have. I will once again use the US as an example, where policies that are the most like yours were implemented under President Ronald Reagan. After the implementation, the US middle class was almost destroyed. The rich got extremely much more rich, while the poor got poorer, and was more of a "trickle-up" scenario. The economy stagnated, compared to when taxes on the rich were increased."

The rich got richer and the poor got richer.

https://www.google.com/url?sa=t&source=web&rct=j&ei=7VjzVI6yF8-oogTmuYKQDg&url=http://m.csmonitor.com/1988/0822/fran22.html&ved=0CCkQFjAB&usg=AFQjCNFnCzWUVIN1xli61qcLAtDeb9wlPw

[New Werpland]

"Already have. I will once again use the US as an example, where policies that are the most like yours were implemented under President Ronald Reagan. After the implementation, the US middle class was almost destroyed. The rich got extremely much more rich, while the poor got poorer, and was more of a "trickle-up" scenario. The economy stagnated, compared to when taxes on the rich were increased."

The rich got richer and the poor got richer.

http://m.csmonitor.com/1988/0822/fran22.html&ved=0CCkQFjAB&usg=AFQjCNFnCzWUVIN1xli61qcLAtDeb9wlPw

"Mr Haas, the link you provide appears to not be working"

[Gallifrey Secundaria]

"Already have. I will once again use the US as an example, where policies that are the most like yours were implemented under President Ronald Reagan. After the implementation, the US middle class was almost destroyed. The rich got extremely much more rich, while the poor got poorer, and was more of a "trickle-up" scenario. The economy stagnated, compared to when taxes on the rich were increased."

The rich got richer and the poor got richer.

http://m.csmonitor.com/1988/0822/fran22.html&ved=0CCkQFjAB&usg=AFQjCNFnCzWUVIN1xli61qcLAtDeb9wlPw

Link doesn't work.

Look here.

[Bleckonia]

The rich got richer and the poor got richer.

http://m.csmonitor.com/1988/0822/fran22.html&ved=0CCkQFjAB&usg=AFQjCNFnCzWUVIN1xli61qcLAtDeb9wlPw

"Mr Haas, the link you provide appears to not be working"

Sorry about that, I edited my post so it should work now

[The Nihilistic view]

*Balthazar Abaroa walks back into the room with a pack of newly printed documents.
"with my limited economic knowledge I present to you a slightly more watered down version of the bill"

---

Primary Revenue Act

Author: Sen. Sebastián Luc Morales (Atlanticatia | DemLeft)
An act to raise revenues.

---

Definitions

• Taxable income - income from employment, wages, salaries, commissions and self-employment earnings.
• Unearned income - income from trusts, rents, dividends, interest, annuities, royalties, and capital gains.
• Capital gains - Profit from the disposition, sale, and/or trading of a capital asset.

§ 1 - Personal Income Tax

a) The personal income tax shall be levied on all 'taxable income' of individuals at the following marginal rates:

Taxable income between $0-$8,000 per annum shall be taxed at: 0%
Taxable income between $8,001-$15,000 per annum shall be taxed at: 15%
Taxable income between $15,001-$25,000 per annum shall be taxed at: 20%
Taxable income between $25,001-$40,000 per annum shall be taxed at: 21%
Taxable income between $40,001-$50,000 per annum shall be taxed at: 26%
Taxable income between $50,001-$60,000 per annum shall be taxed at: 30%
Taxable income between $60,001-$80,000 per annum shall be taxed at: 37%
Taxable income between $80,001-$100,000 per annum shall be taxed at: 40%
Taxable income between $100,000-$200,000 per annum shall be taxed at: 50%
Taxable income above $200,000 per annum shall be taxed at 60%

b) Individuals will be considered 'tax-resident' if they are resident in Calaverde for at least 183 days per year, and will then be subject to pay Personal Income Tax on their worldwide taxable income. If they are not 'tax-resident', they will only be liable for Personal Income Tax on domestically sourced taxable income.
c) Individuals who are tax-residents of Calaverde and earn foreign-sourced taxable income shall be entitled to claim a 'foreign tax credit' for 100% of the corresponding income tax they have paid in the foreign country, which can reduce their Calaverdean tax liability. If their foreign income tax liability is greater than or equal to their Calaverdean income tax liabiltiy, they will owe no Calaverdean income tax. If their foreign income tax liability is less than their Calaverdean income tax liability, they will still be liable to pay Calaverdean income tax. Only their Calaverdean tax liability on their foreign-sourced income may be reduced - tax credits cannot be used to reduce Calaverdean income taxes on Calaverdean-sourced income.

---

§ 2 - Universal Social Contribution

a) The Universal Social Contribution shall be levied on domestically sourced gross earnings from wages, salaries, commissions, and self-employment at the following rates:

0.7% shall be levied on the gross earnings of employees.
0.7% shall be paid by the employer on the employee's gross earnings.
1% shall be levied on an individual's income from self-employment.

---

§ 3 - Corporate Tax

a) Corporate tax shall be levied on all worldwide corporate profits, at the following marginal rates:

Corporate profits between $0-$500,000 per annum shall be taxed at a rate of 7%.
Corporate profits above $500,000 per annum shall be taxed at a rate of 7%.

b) Corporations shall be entitled to receive a 'foreign tax credit' for corporate taxes paid in a foreign country. If the tax they paid in a foreign country is greater than or equal to their assessment for Calaverdean corporate tax liability, they will not owe any Calaverdean corporate tax. If the corporate tax they paid in a foreign country is lesser than their assessment for Calaverdean corporate tax liability, they will be liable to pay the difference.
c) Only domestically headquartered corporations will pay corporate tax on their worldwide profits. Foreign corporations will pay tax on domestic profits only.

---

§ 4 - Taxes and Duties

a.) The 'luxury car sales tax' shall be levied at the point of sale or import of a vehicle, at a marginal rate of 33% on the assessed value above $45,000.
b.) The 'fuel excise tax' shall be levied on all motor vehicle gasoline at a rate of $0.50 per litre, or $1.89 per US gallon.
c.) The 'motor vehicle charge' shall be levied on the final sale price, inclusive of all other taxes, of all vehicles at the point of sale, at a rate of 5%.
d.) A 'stamp duty' of shall be levied on the sale of property. The amount shall be a marginal rate of 10%, levied on the assessed value above $2,000,000.

---

§ 5 - Unearned Income Tax

a.) The Unearned Income tax shall be levied on all 'unearned income' of individuals at the following marginal rates:

Unearned income between $0-$8,000 per annum shall be taxed at: 0%
Unearned income between $8,001-$15,000 per annum shall be taxed at: 20%
Unearned income between $15,001-$25,000 per annum shall be taxed at: 30%
Unearned income between $25,001-$40,000 per annum shall be taxed at: 40%
Unearned income between $40,001-$60,000 per annum shall be taxed at: 45%
Unearned income between $60,001-$200,000 per annum shall be taxed at: 50%
Unearned income above $200,000 per annum shall be taxed at: 55%

b) Capital gains from the sale of the main home shall be exempt from Unearned Income Tax, up to a limit of $250,000. The main home shall be defined as an owner-occupied principal residence of the taxpayer in which he or she spends the majority of the tax year living in.
c) Individuals will be considered 'tax-resident' if they are resident in Calaverde for at least 183 days per year, and will then be subject to pay Unearned Income Tax on their worldwide taxable income. If they are not 'tax-resident', they will only be liable for Unearned Income Tax on domestically sourced taxable income.
d) Individuals who are tax-residents of Calaverde and earn foreign-sourced taxable income shall be entitled to claim a 'foreign tax credit' for 100% of the corresponding tax they have paid in the foreign country, which can reduce their Calaverdean tax liability. If their foreign tax liability is greater than or equal to their Calaverdean tax liability, they will owe no Calaverdean tax. If their foreign tax liability is less than their Calaverdean tax liability, they will still be liable to pay Calaverdean tax.

---

§ 6 - Miscellaneous

a) Taxes shall be collected, and credits distributed, via the provisions of the State Revenue Administration Act.
b) All $ figures are in USD.

"ORDER ORDER

Is this your bill an amendment or what? Right now it looks like you are taking ownership and editing a bill nothing to do with you."

[New Werpland]

"Mr Haas, the link you provide appears to not be working"

Sorry about that, I edited my post so it should work now

"it still doesn't work, and I still heavily doubt your claim"

[New Werpland]

"does anyone have an opinion on my version of the bill?"

[Lykens]

"does anyone have an opinion on my version of the bill?"

"It lacks presidential assent and will not make it anywhere."

[Bleckonia]

Sorry about that, I edited my post so it should work now

"it still doesn't work, and I still heavily doubt your claim"

If you're on a computer, get rid of the m. in the URL. I'm on a phone right now.