Tax Law Change

[Andreas the Wise]

With the removal of voting credits, the economic link between Duchies and Taxes has been broken, probably permanently. As such, it seems silly to tax by Duchy, especially when one Duke refuses to participate in the economy.

So ... I propose a change to the tax law.

I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation with one weeks notice to the general populous. It announce its intention to conduct taxation when one of two conditions are met:
i. The Crown Account is under 10000 erb.
ii. Taxes have not been levied for a month.

2. The Kaiser may stop a tax after it is announced but before it is levied.

3. The Amount of taxation shall be 2000 erb from each Duchy. Where possible, this will be taken directly from the Duke zirself. Where the Duke has less than 2000 erb, this shall be taken from the richest citizen, and so on. Where the entire Duchy has less than 2000 erb, all the erb they have shall be taken, and it is at the discretion of the Ministry of Trade and the Kaiser about whether the remaining sum will be taken when it becomes available.

4. Dukes are empowered to conduct taxation within their Duchy in order to recoup their loss from the National Taxation.

5. The amount and timing of taxation may be changed by the Kaiser of Act of Landsraad.

I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation every month. Unless otherwise stated, taxes will be levied on the last day of each month.

2. The Taxation shall be personal and as follows, payable on each part therein.
0-1000 erb - Tax Free
1000.01-2000 erb - 10%
2000.01-3500 erb - 15%
3500.01-5000 erb - 20%
5000.01+ erb - 30%

3. Companies who have a separate account will also be taxed, at the following rates:
0-1000 erb - 10%
1000.01-2000 erb - 17%
2000.01-3500 erb - 25%
3500.01-5000 erb - 35%
5000.01+ erb - 50%

4. If the Crown Account falls below 10000 erb, MiniTrade can announce an 'Emergency Liquidity Tax'. This must be announced at least one week before it is levied. It shall be a per-head tax of 200 per head.

5. The Kaiser may stop an 'Emergency Liquidity Tax' after it is announced but before it is levied.

If this were passed, Treasury policy would become that bounties are paid every month on the first day of the month (or after taxes, whichever's later).
This is a tax system I've used in Novatainia. It's a wealth tax (on how much you have, not how much you earn) designed to encourage spending. An obvious and encouraged tax dodge is to spend all your money up near the end of the month to get under 1000. Companies are taxed higher because originally company money should have just gone into a personal account, and if you're going to have multiple accounts, you could otherwise dodge taxes by splitting your money between them. This way, money left in company accounts is still taxed as well as your personal money (so you're encouraged to put it all into your personal account and make things easier for me to work out).
The liquidity tax is because theoretically I like the Crown account to stay above 10000 and pay bounties from the amount above that ... but in recent times we've ended up at 0. That gives me a way to fix that, and also to take money out of inactive accounts that I wouldn't be able to do if they had <1000.

[Jess]

Whats the cliffs notes version?

[Andreas the Wise]

I stop taxing Dukes, and instead tax everyone, but you only get taxed if you have over 1000 erb, and you only get taxed much if you have over 3500 erb. So it helps the poor guys.

[Ari Rahikkala]

Straylight AYE.

[Jess]

Yardistan AYE

[Andreas the Wise]

Kildare AYE

[Malliki]

Brookshire HELL YEAH!

[Kaiser Agni I]

So, only tax the rich? What then is the incentive to acquire wealth?

[Andreas the Wise]

Incentive to acquire wealth? We're not in the old "money=votes" age. We don't want people acquiring *wealth*. We want people spending and acquiring *stuff*. This is a tax that encourages you to spend the money you get from bounties instead of letting it sit there.

[Kaiser Agni I]

What if I like letting it sit. Or I'm saving up for some service, scheme or plan...?

[Andreas the Wise]

If you're saving up, I'm quite happy to introduce, as in Novatainia, a "tax exemption form" where you can say "look, I'm saving for this 5000 thing, I only have 4000, please don't tax me."

If you just like letting it sit, it isn't contributing to the economy.

[Iskander Mirkdale]

Elwynn: AYE

[Harald of Froyalan]

Your Graces,

Voting is closed now. The tally is 5 Ayes and 0 Nays. This Bill has therefore been passed by the Landsraad.