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

[Bleckonia]

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

It's slightly less bad than the Government's.

[New Werpland]

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

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

"why thank you"

[New Werpland]

*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"

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Primary Revenue Act

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

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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.

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§ 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.

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§ 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.

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§ 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.

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§ 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.

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§ 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."

"yes it is an amendment, could it be anything else?"

[Atlanticatia]

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

"ORDER

Mr Morales, is the amendment friendly?"

"No, I am irreconcilably opposed to this amendment."

[Bleckonia]

"ORDER

Mr Morales, is the amendment friendly?"

"No, I am irreconcilably opposed to this amendment."

Is there any way you'd be willing to hammer out a compromise amendment?

[Atlanticatia]

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.

"You are wrong, once again. Your attempt to mislead Calaverdeans is futile - this is an attack on hard working Calaverdeans.

Keep in mind that I am both Minister of Finance and Minister of Social Development. We plan to pass a bill to provide for a universal child benefit of $900 per annum, per child to every Calaverdean family.

Assuming that it is a family of 2 adults and 2 children, a family with an income of $8,000 would see their net tax burden decline to -21.8%, meaning their net income would be $9,744. A family with an income of $15,000 would see their net tax burden decline to -2.34%, meaning their net income would be $15,351.

Under the Government's plan, these families will pay little to no tax, in fact getting a net benefit.

Not to mention, your revenue plan will barely pay for our education system, for one. So, will hardworking families not only lose their child benefits, but they'll have to pay tuition fees for their kids to go to school or nursery?

The Opposition's plan will lead to falling disposable incomes for Calaverdean families, and will inevitably lead to user-pays education and health care."

[Atlanticatia]

"No, I am irreconcilably opposed to this amendment."

Is there any way you'd be willing to hammer out a compromise amendment?

"We don't have room for tax cuts for the rich, which is what you've proposed. We can't compromise on the revenues we need to invest in Calaverde, and any decrease in revenues would inevitably mean cuts to spending. Which isn't going to happen. Our net revenues must not decline and our spending plans will not be reduced. Unless you can think of some way to maintain current revenues, not force spending cuts, and not negatively impact hardworking Calaverdeans, there isn't much room to compromise. I will not cut the top rate of tax, I will not decrease the personal allowance, I will not cut family benefits, I will not cut pensions."

[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.

"You are wrong, once again. Your attempt to mislead Calaverdeans is futile - this is an attack on hard working Calaverdeans.

Keep in mind that I am both Minister of Finance and Minister of Social Development. We plan to pass a bill to provide for a universal child benefit of $900 per annum, per child to every Calaverdean family.

Assuming that it is a family of 2 adults and 2 children, a family with an income of $8,000 would see their net tax burden decline to -21.8%, meaning their net income would be $9,744. A family with an income of $15,000 would see their net tax burden decline to -2.34%, meaning their net income would be $15,351.

Under the Government's plan, these families will pay little to no tax, in fact getting a net benefit.

Not to mention, your revenue plan will barely pay for our education system, for one. So, will hardworking families not only lose their child benefits, but they'll have to pay tuition fees for their kids to go to school or nursery?

The Opposition's plan will lead to falling disposable incomes for Calaverdean families, and will inevitably lead to user-pays education and health care."

My proposal does not eliminate the possibility for benefits.

[Atlanticatia]

"You are wrong, once again. Your attempt to mislead Calaverdeans is futile - this is an attack on hard working Calaverdeans.

Keep in mind that I am both Minister of Finance and Minister of Social Development. We plan to pass a bill to provide for a universal child benefit of $900 per annum, per child to every Calaverdean family.

Assuming that it is a family of 2 adults and 2 children, a family with an income of $8,000 would see their net tax burden decline to -21.8%, meaning their net income would be $9,744. A family with an income of $15,000 would see their net tax burden decline to -2.34%, meaning their net income would be $15,351.

Under the Government's plan, these families will pay little to no tax, in fact getting a net benefit.

Not to mention, your revenue plan will barely pay for our education system, for one. So, will hardworking families not only lose their child benefits, but they'll have to pay tuition fees for their kids to go to school or nursery?

The Opposition's plan will lead to falling disposable incomes for Calaverdean families, and will inevitably lead to user-pays education and health care."

My proposal does not eliminate the possibility for benefits.

"So you plan to run a huge deficit of, say, 15% of GDP that will bankrupt Calaverde? Your revenue bill won't bring in the revenues we need to fund welfare, education, health, defence, et cetera. I doubt it'd bring in more than a few billion, leaving the Treasury almost dry. It does eliminate a possibility for benefits. By eliminating the revenues needed to pay for them."

[Bleckonia]

My proposal does not eliminate the possibility for benefits.

"So you plan to run a huge deficit of, say, 15% of GDP that will bankrupt Calaverde? Your revenue bill won't bring in the revenues we need to fund welfare, education, health, defence, et cetera. I doubt it'd bring in more than a few billion, leaving the Treasury almost dry. It does eliminate a possibility for benefits. By eliminating the revenues needed to pay for them."

First of all, how do you know it would be 15%? Second of all, I do, admittedly, think that the benefits you intend to provide are over-generous.

[Atlanticatia]

"So you plan to run a huge deficit of, say, 15% of GDP that will bankrupt Calaverde? Your revenue bill won't bring in the revenues we need to fund welfare, education, health, defence, et cetera. I doubt it'd bring in more than a few billion, leaving the Treasury almost dry. It does eliminate a possibility for benefits. By eliminating the revenues needed to pay for them."

First of all, how do you know it would be 15%? Second of all, I do, admittedly, think that the benefits you intend to provide are over-generous.

"It was just an example number - whatever it is, it will be high. The Government plans to spend about 30% of GDP, and your revenue bill won't even get near that number. I also question your claim that benefits are over-generous. I think they're a fair amount that will deliver real relief to hardworking families."

[New Bierstaat]

"I agree, luxury cars are not needed, not wanted and not useful in any way."

"And it's not the government's place to decide that," said a clearly disgusted Sen. Jose Dalí from the right side of the chamber. Dalí looked back down to his desk here he was penning a lengthy speech in opposition to the tax bill.

[The New World Oceania]

"Point of parliamentary inquiry, what is the procedure for unfriendly amendments?"

[The Union of the West]

Senator Reijnders stood up and asked, "What are we going to be funding that requires that much tax revenue? There's no reason for there to be a 50% tax bracket."

[Arkolon]

Senator Reijnders stood up and asked, "What are we going to be funding that requires that much tax revenue? There's no reason for there to be a 50% tax bracket."

"It's marginal", Marino reminded.

[The Nihilistic view]

"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."

"yes it is an amendment, could it be anything else?"

"In it's current form it looks like you are trying to pass it off as the bill the Finance Minister wrote. Kindly turn it into an amendment."

[The Nihilistic view]

"Point of parliamentary inquiry, what is the procedure for unfriendly amendments?"

"Briefcase, Airport, America."

[Glasgia]

The bill appears to make no concession for the co-operatives of our nation - For the bastions of economic democracy. We should be encouraging workers to organise as such, diverting the flow of wealth away from the bourgeoisie private owners and towards those who invest not unearned money but their own labour. As such, I would request that the right honourable minister amends the act to lessen the burden upon these organisations and to support the common worker - As he claims this act is intended to do.

[The Nihilistic view]

"A business is a business and they should all be treated equally in that regard. Nobody is stopping cooperatives from forming and if they were really that wonderful they would not need any special treatment would they."

[The New World Oceania]

"Point of parliamentary inquiry, what is the procedure for unfriendly amendments?"

"Briefcase, Airport, America."

A legitimate answer would be appreciated, Mr. Speaker.

[Estva]

The bill appears to make no concession for the co-operatives of our nation - For the bastions of economic democracy. We should be encouraging workers to organise as such, diverting the flow of wealth away from the bourgeoisie private owners and towards those who invest not unearned money but their own labour. As such, I would request that the right honourable minister amends the act to lessen the burden upon these organisations and to support the common worker - As he claims this act is intended to do.

I would not support any bill that seeks to give co-operatives some special status.

[New Werpland]

First of all, how do you know it would be 15%? Second of all, I do, admittedly, think that the benefits you intend to provide are over-generous.

"It was just an example number - whatever it is, it will be high. The Government plans to spend about 30% of GDP, and your revenue bill won't even get near that number. I also question your claim that benefits are over-generous. I think they're a fair amount that will deliver real relief to hardworking families."

But can they not be cut back a little bit? Benefits do help hardworking families, but so do jobs.

[New Werpland]

"yes it is an amendment, could it be anything else?"

"In it's current form it looks like you are trying to pass it off as the bill the Finance Minister wrote. Kindly turn it into an amendment."

"Ah now I see, please excuse my mistake"


Amendment material below this

Changes to income tax)

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%

Changes to Corporate Tax)
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%.

[Heraklea-]

The bill appears to make no concession for the co-operatives of our nation - For the bastions of economic democracy. We should be encouraging workers to organise as such, diverting the flow of wealth away from the bourgeoisie private owners and towards those who invest not unearned money but their own labour. As such, I would request that the right honourable minister amends the act to lessen the burden upon these organisations and to support the common worker - As he claims this act is intended to do.

I would not support any bill that seeks to give co-operatives some special status.

"As a government minister you are required to support government bills or else you lose your position," David whisper's into his colleague's ear. "Besides, are willing to risk bringing down the government on so small a provision?"

Stepping away briefly, he begins addressing the collective body in a louder voice.

"While it is true, as some of my distinguished colleagues have pointed out, that a worker co-op is a business, there is a key difference between them and other businesses. These businesses are run by Calaverdeans, the profits will remain in Calaverde and the benefits of their existance will be applied universally to Calaverdeans, as opposed to large multinationals that would take advantage of an economic environment that is too friendly to corporations instead of the people of our country." David then returns to his colleague's side to continue a discreat conversation. (OOC: As in, you'll only know they are discussing if you are actively looking for it. Otherwise, you'll just be hearing the ongoing debate.)

[Estva]

"As a government minister you are required to support government bills or else you lose your position," David whisper's into his colleague's ear. "Besides, are willing to risk bringing down the government on so small a provision?"

When David sat down again Suero responded.

"Of course I would support the bill if the government agrees on it, but I personally don't want the government to sponsor such a bill".