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Taxation in your nation

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Anarchitaria
Envoy
 
Posts: 302
Founded: Sep 17, 2017
Ex-Nation

Postby Anarchitaria » Thu Jun 14, 2018 8:36 am

Is there any taxation in your nation? No — complete anarchy
If yes, what are the most important existent taxes? (see first reply)
Is tax evasion common? No, since there is no taxation to comply with.
How does taxes affect people and the economy in overall? It doesn’t, because income tax is non-existent.
Peter Kropotkin wrote, “We accustom ourselves and our children to hypocrisy, to the practice of a double-faced morality. And since the brain is ill at ease among lies, we cheat ourselves with sophistry. Hypocrisy and sophistry become the second nature of the civilized man. But a society cannot live thus; it must return to truth or cease to exist.” The Conquest of Bread (1892)

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Satan Hate Bears
Lobbyist
 
Posts: 19
Founded: May 24, 2018
Ex-Nation

Postby Satan Hate Bears » Thu Jun 14, 2018 9:12 am

Is there any taxation in your nation? Yes.
If yes, what are the most important existent taxes? There are numerous taxes, but the most important is income tax, which is variable, and can fluctuate from 87%-99.99%.
Is tax evasion common? Yes, though it is not possible to evade income tax even if you wanted to, as it is deducted automatically.
How does taxes affect people and the economy in overall? Most people live in extreme poverty and are starving. They have no money, and almost none of the tax money actually goes back to helping them in any meaningful ways.
Last edited by Satan Hate Bears on Thu Jun 14, 2018 9:13 am, edited 1 time in total.
The Democratic Socialist People's United Earth Republic of Satan Hate Bears
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Wunderstrafanstalt
Diplomat
 
Posts: 568
Founded: Feb 19, 2017
Ex-Nation

Postby Wunderstrafanstalt » Thu Jun 14, 2018 10:16 am

Is there any taxation in your nation?
Yes.
If yes, what are the most important existent taxes?
  • Negative income tax (NIT) - a progressive tax ranging from 7.142,86 Helters "subsidy" for the lowest income to 17% for the highest.
  • Corporate tax: 8% (uniform globally), 3% for small and medium businesses, 0% for the first 2 years of businesses.
  • Sales tax: 5%.
  • Luxury tax: 5-15%.
  • Environmental tax: 2-40% (note: the tax implementation is followed by greatly cutting environmental restrictions).
  • "Sin Tax": 20% to 80%, from burned tobacco to low-THC recreational drugs.
  • Import tax/tariffs: 0%.
      (Note:
    • Due to the 'gunboat diplomacy' system, trade barriers all over the world has became largely extinct. Tariffs is now only implemented with the democratic authorization of the NWO General Assembly, with the only purpose of economic sanctioning (which is mandatory).
    • Wunderstrafanstalt is a member of the Lairan Union's single market and customs union, which forever prohibit and abjure all forms of between-member trade barrier or taxation inside the union - interstate trade has exactly 0 difference with domestic trade.)
Is tax evasion common?
In the past, tax evasions has became a plaguing problem in government financing. However, since the reforms in 2017 it has largely disappear.
  • All countries has now the same corporate tax rate of 8%. No more "random tax haven island with 2% tax rate in the middle of the ocean".
  • Public tax return: by evading taxes/ returning it late, the government assumed that the evader has relinquished its right for privacy and will start to publish all of their tax information excessively. In comparison, compliant returners' tax information will be kept secret.
  • Digital tax return reform: since 2018, the average tax return process per citizen is about 63 minutes - most consists of only checking as the bulk of the process is usually done automaticly by the cheap private financial assistance services.
How does taxes affect people and the economy in overall?
Wunderstrafanstalt has enjoyed higher economic growth due to its history of lower taxes. However, many left wingers was dissatisfied with low rates for the rich and the low welfare spending (although social safety net has been increased by the NIT, in contrast to the previous government). Because of low taxes, Wunderstrafanstalt also kept its general austerity measures to keep budget balance, although it is mainly focused to keep government influence out of the economy - expenditure is only 10% of the GDP.
Last edited by Wunderstrafanstalt on Thu Jun 14, 2018 10:23 am, edited 2 times in total.

CFR WUNDERSTRAFANSTALT - LAIRAN UNION
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Zhouran
Powerbroker
 
Posts: 7998
Founded: Feb 09, 2013
Ex-Nation

Postby Zhouran » Thu Jun 14, 2018 1:08 pm

Is there any taxation in your nation? As of 2020, the People's Republic of Zhouran has a corporate tax rate of 4.5%–15.0% (depending on the annual turnover of each business), a minimum individual tax rate of 0.0%, a maximum individual tax rate of 20.5%, and a value-added tax rate of 0.0% for essential items and 10.0% for others. The nation currently maintains a low tax burden, one of the lowest in the world for a highly-developed wealthy nation, with total tax revenue as a percentage of gross domestic product being only around 20.6%.

Is tax evasion common? No, tax evasion is illegal in the PRZ, plus not to mention that it is basically nonexistent.

How does taxes affect people and the economy in overall? The socialistic economy of the People's Republic of Zhouran has been helped by a very-stable macroeconomic environment, very-low tax burden, high social mobility, economic protectionism, high industrialization, large abundance of natural resources, and industrial self-reliance, which indeed plays an important role in national prosperity for the country.

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Baudevaux
Lobbyist
 
Posts: 23
Founded: Jun 14, 2018
Ex-Nation

Postby Baudevaux » Thu Jun 14, 2018 5:39 pm

Is there any taxation in your nation?
The flat income tax rate is just under 10%.

If yes, what are the most important existent taxes?
Social Welfare - 18%
Education - 18 %
Law and Order / Civil Defense - 17 %
Healthcare - 15 %
Public Transport - 7 %

Is tax evasion common?
Taxes are deducted automatically from direct-deposit paychecks, making tax evasion impossible without corresponding payroll fraud. Small businesses that pay workers cash-in-hand or with paper checks must keep records of their payouts and issue them to the local tax office. The tax office then sends a tax bill to those individuals at the end of the year. For obvious reasons, these individuals are most likely to evade (or attempt to evade) taxes. Success rates vary.

How does taxes affect people and the economy in overall?
Since the tax rate is low and unobtrusive, most citizens think that it is fair.

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