FT 13-01: Commonwealth Budget for FY2020 (Debating)

[PSOL]

I much prefer the tax plan introduced by Harry Truman, they are much more progressive in their nature. An added VAT and sales tax is a regressive tax on the lower classes, something I won’t have.

[AustralianSwingVoter]

I much prefer the tax plan introduced by Harry Truman, they are much more progressive in their nature. An added VAT and sales tax is a regressive tax on the lower classes, something I won’t have.

It's not an additional sales tax. Almost every state already has a Sales Tax, and under my plan about 90% of Fremonters would see a decrease in their Sales Tax rate, most quite significantly.
And a VAT is not a regressive tax on the poor, that's just a moronic talking point with no basis in reality.

[Unconditional Surrender Truman]

People' don't have to drink. Most do have to make regular use of an automobile that runs on gasoline. The effect of an increase to the gasoline tax will be to put more pressure on commuters, not manufacturers. If the intent is to encourage development of affordable electric cars, regulation and subsidies are the correct way forward.

The sales tax is a flat tax targeting consumption: its effects are thus obviously more keenly felt by the poor (who have little capital to spare) than the wealthy (who are essentially unaffected by it). Picking up the line with regard to behavior incentivized by the tax code, I would much rather discourage wealth inequality than consumer spending —but perhaps that's just me.

[AustralianSwingVoter]

The sales tax is a flat tax targeting consumption: its effects are thus obviously more keenly felt by the poor (who have little capital to spare) than the wealthy (who are essentially unaffected by it). Picking up the line with regard to behavior incentivized by the tax code, I would much rather discourage wealth inequality than consumer spending —but perhaps that's just me.

A 4% sales tax remains incredibly small. It will still be a significant tax cut for the vast majority of Fremonters. And it is accepted economic fact that consumption taxes boost economic growth. Consumption Taxes incentivise savings and investment, both behaviours that improve the economic welfare of all citizens. Why shouldn't we be encouraging people to save more of their earnings?

[Unconditional Surrender Truman]

Again, (to recap what was said on FrémontCord), I will need to see actual numbers before I sign on to any alternate plan, but as for claims that a sales tax will encourage consumers to save more and spend less: (a) that is not necessarily always a good thing in terms of pushing growth; and (b) the people who would be primarily incentivized to spend less by a sales tax are the poor and lower middle class. Forgive me if I dispute the premise that raising their taxes is the best way to increase their economic security.

[KoopaDaQuick 🇵🇸]

I think that the idea of a regional sales tax is a little silly. I don't think that it's the responsibility of the region to implement sales taxes onto the people. Frémont is a vast region of people who live vastly different lives. I don't think a Californian, a Wyomingite, an Alaskan, an Iowan, and an American Samoan should have the same tax rate. Those five states are quite different when it comes to their economies, structure, and way of living. Be it either a VAT or a traditional sales tax, there isn't a simple one-size-fits-all rate, unless you want to have the states stack their sales taxes on top of the 4%, which defeats the purpose of having it so low. When I go to my local grocery store and buy a soft drink for $1, Black Hawk County and Iowa taxes could kick in and make that $1.04 cup of pop turn into a soft drink that would cost a little more, maybe $1.09 or something like that. Granted, economics and numbers aren't my number one skill, but I think that there could be a caliber of disaster indicated by the presence of a region-wide sales tax in our commonwealth.

[AustralianSwingVoter]

I think that the idea of a regional sales tax is a little silly. I don't think that it's the responsibility of the region to implement sales taxes onto the people. Frémont is a vast region of people who live vastly different lives. I don't think a Californian, a Wyomingite, an Alaskan, an Iowan, and an American Samoan should have the same tax rate. Those five states are quite different when it comes to their economies, structure, and way of living. Be it either a VAT or a traditional sales tax, there isn't a simple one-size-fits-all rate, unless you want to have the states stack their sales taxes on top of the 4%, which defeats the purpose of having it so low. When I go to my local grocery store and buy a soft drink for $1, Black Hawk County and Iowa taxes could kick in and make that $1.04 cup of pop turn into a soft drink that would cost a little more, maybe $1.09 or something like that. Granted, economics and numbers aren't my number one skill, but I think that there could be a caliber of disaster indicated by the presence of a region-wide sales tax in our commonwealth.

We've absorbed all state revenue and expenditures. The entire region is going to have an identical tax structure, and separate states can no longer levy their own taxes. That's why I'm suggesting a small 4% VAT as a least change proposal. It will simply replace the existing sales taxes, and it will still be a sales tax cut for the vast majority of Fremonters.

[KoopaDaQuick 🇵🇸]

I think that the idea of a regional sales tax is a little silly. I don't think that it's the responsibility of the region to implement sales taxes onto the people. Frémont is a vast region of people who live vastly different lives. I don't think a Californian, a Wyomingite, an Alaskan, an Iowan, and an American Samoan should have the same tax rate. Those five states are quite different when it comes to their economies, structure, and way of living. Be it either a VAT or a traditional sales tax, there isn't a simple one-size-fits-all rate, unless you want to have the states stack their sales taxes on top of the 4%, which defeats the purpose of having it so low. When I go to my local grocery store and buy a soft drink for $1, Black Hawk County and Iowa taxes could kick in and make that $1.04 cup of pop turn into a soft drink that would cost a little more, maybe $1.09 or something like that. Granted, economics and numbers aren't my number one skill, but I think that there could be a caliber of disaster indicated by the presence of a region-wide sales tax in our commonwealth.

We've absorbed all state revenue and expenditures. The entire region is going to have an identical tax structure, and separate states can no longer levy their own taxes. That's why I'm suggesting a small 4% VAT as a least change proposal. It will simply replace the existing sales taxes, and it will still be a sales tax cut for the vast majority of Fremonters.

Gotcha.

[Unconditional Surrender Truman]

We're in the home stretch, folks! I'm invoking my right as president of parliament to call a 48-hour principle vote on the two tax plans; whichever is adopted will then become the final version of the budget. This will allow us to have a budget in place before the New Year, ensuring Frémont is on sound fiscal footing as we enter the next decade!

Instructions: The vote will last forty-eight (48) hours or until one option has the votes of a majority of sitting MFPs. Mark your ballot to indicate the plan you prefer for adoption with the commonwealth budget for the fiscal year of 2020.

[   ] Option 1: Truman Plan
[   ] Option 2: Australian Plan

[Unconditional Surrender Truman]

Instructions: The vote will last forty-eight (48) hours or until one option has the votes of a majority of sitting MFPs. Mark your ballot to indicate the plan you prefer for adoption with the commonwealth budget for the fiscal year of 2020.

[ X ] Option 1: Truman Plan
[    ] Option 2: Australian Plan

[AustralianSwingVoter]

Instructions: The vote will last forty-eight (48) hours or until one option has the votes of a majority of sitting MFPs. Mark your ballot to indicate the plan you prefer for adoption with the commonwealth budget for the fiscal year of 2020.

[    ] Option 1: Truman Plan
[ X ] Option 2: Australian Plan

[Roblox]

Instructions: The vote will last forty-eight (48) hours or until one option has the votes of a majority of sitting MFPs. Mark your ballot to indicate the plan you prefer for adoption with the commonwealth budget for the fiscal year of 2020.

[ X ] Option 1: Truman Plan
[    ] Option 2: Australian Plan

[PSOL]

[X  ] Option 1: Truman Plan
[   ] Option 2: Australian Plan

[Unconditional Surrender Truman]

Lovely! With a majority of members in favor, the Truman plan is adopted.

[Unconditional Surrender Truman]

COMMONWEALTH BUDGET
for the fiscal year of 2020

I. Revenues.
☞   Income Tax: $141,458,440,106$0K – $125K (0%): $0

$125 – $200K (5%): $4,544,572,163

$200K – $1M (15%): $51,494,832,936

$1M – $10M (30%): $45,459,789,567

$10M – $100M (45%): $30,242,234,007

$100M+ (60%): $9,717,011,433
☞   Corporate Taxes: $222,721,286,871$0 – 100K (0%):  $0
         
$100K – 1M (20%): $1,052,287,645   
         
$1M – 10M (40%): $7,087,226,512
               
$10M+ (60%): $214,581,772,714
☞   Excise Taxes: $30,457,309,589Alcohol (15%): $13,087,791,871

Gas & Diesel ($0.30/gallon): $14,653,207,484

Tobacco (15%): $2,716,310,234
☞   Misc. Taxes and Penalties: $64,747,757,223Fremont Carbon Taxation Act: $31,011,738,620

Green Vehicle Promotion Act § 2(ii): $3,602,574,479

Royalties Act:
Coal: $2,877,687,513
Gas: $1,500,722,750
Oil: $11,355,570,000

Gaming Tax: $5,100,495,700

Estate Tax (50%): $5,852,884,365

Drug Tax: $3,446,083,796

Lodging Facility Sales and Use Tax: $5,091,240,579.71
☞   FY2019 Surplus: $181,997,845,008


II. Expenditures.
☞   Tax Credits: $1,660,474,443Green Vehicle Promotion Act §2(i): $1,236,935,443

Teacher's Tax Credit: $423,539,000
☞   Mandatory Spending: $206,060,590,457 (List A)
☞   Discretionary Spending: $415,502,000,000Education: $195,282,000,000

Health and Human Services: $130,676,000,000

Justice: $36,491,000,000

Home Office: $53,053,000,000


TOTAL REVENUES: $641,382,638,797
TOTAL EXPENDITURES: $623,223,064,900
TOTAL SURPLUS: $18,159,573,897

[Unconditional Surrender Truman]

I move for a final vote.

[AustralianSwingVoter]

Objection

[Unconditional Surrender Truman]

Okay, then, I guess we're voting on cloture. Not sure why an objection was necessary when we already know a majority support's this version of the budget and no new concerns were raised to justify shutting down the government for the first bit of 2020, but hey, I'm not your maker!

Members will vote Aye, Nay, or abstain. Voting will last 48 hours or until the necessary majority is reached.


Aye!

[AustralianSwingVoter]

Okay, then, I guess we're voting on cloture. Not sure why an objection was necessary when we already know a majority support's this version of the budget and no new concerns were raised to justify shutting down the government for the first bit of 2020, but hey, I'm not your maker!

I am the opposition after all. My job is to provide opposition to some degree, at least.
There's many things you can criticise me for, but providing opposition as the only non-left member really shouldn't be one of them.

[AustralianSwingVoter]

Nay

[Unconditional Surrender Truman]

Okay, then, I guess we're voting on cloture. Not sure why an objection was necessary when we already know a majority support's this version of the budget and no new concerns were raised to justify shutting down the government for the first bit of 2020, but hey, I'm not your maker!

I am the opposition after all. My job is to provide opposition to some degree, at least.
There's many things you can criticise me for, but providing opposition as the only non-left member really shouldn't be one of them.

Sometimes opposition is useful as a means of holding the government accountable and providing an alternative perspective on the business before parliament. Risking a government shutdown to force a vote that we already know the outcome of (not even a vote on the bill itself, a vote on whether or not to vote) doesn't do that, it just wastes time. (Unless it is your position that the government stands for efficiency and responsible leadership and your job is to provide a contrast, I guess!)

[PSOL]

Aye

[Roblox]

Aye

[AustralianSwingVoter]

Objection

Withdrawing this because I forgot our budget term is the Calendar Year (rather than the financial year) so I forgot that we go into shutdown in four days time.

[KoopaDaQuick 🇵🇸]

Aye