S-18.3-16: Southern Tax Relief Act (Statute)

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I introduced this bill to help improve the lives of the working poor of the South. The current federal income tax rates for low income people (10% for under $13k, 15% for over $13k) are extortionate. While the South doesn't have the authority to lower these taxes, we do have the authority and the means to compensate our citizens. I have also requested a cost estimate from the GM including with the possibility of amending the bill to include people earning up to £25,000.

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Quick amendment... change $12,999 to $12,999.99 to make sure everyone is covered.

Sure.

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I've just noticed what I would consider to be an issue with this bill. A person making exactly $12,999.99 would be highly discouraged from earning an extra cent a year. Their federal income taxes would go from $0 to $650 (Assuming my math is correct). Granted, this isn't a radical change (about $12 a week), but it is an issue. I'm not sure how it would be solved or if it is possible to solve. Perhaps a more gradual shift from full to half reclaim would be possible.

In any event, I still think this bill would have a positive effect and I don't intend to vote against purely because a statistically insignificant group would be discouraged from picking up a penny off the ground.

I patiently await the estimate from the GM.

Its a fair point to bring up and an issue with tax brackets in general. If there is a way to better do it, I'd be happy to support it.

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Is there anything left to debate in regards to this legislation?

Yeah. We are waiting for cost estimates from the GM.

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While I am in favor of people getting their money back, it rubs me odd that we are paying people for what the Feds are stealing.

I agree with you that this is far from ideal. However, the Federal Government has a $800-900 billion deficit so it is unlikely that they will be doing anything like this any time soon so I think that this is the best we can do for the Southern people in the meantime.

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So are we going to get the GM estimate on this?

I asked for the estimate a couple of weeks ago, I don't know where they are on it.

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I object. We are still waiting for the estimates from the GM on this. I have followed up and hope we'll get them soon.

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I object. We are still waiting for the estimates from the GM on this. I have followed up and hope we'll get them soon.

Have you gotten any response from the GM office?

Nothing

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I'm gonna do my own research on how much this costs because otherwise this will be a waste. If anyone wants to help or oversee, that would be good. It should be transparent.

Object to the motion.

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I can't find any exact figures for the amounts the bill proposes, however, this information should give us an idea of how much this will cost.

In 2015, the bottom 50% of tax payers (those earning less than $39,275) contributed $41 billion in revenue to the federal government (after tax credits ect.). https://taxfoundation.org/summary-federal-income-tax-data-2017/

The Atlasian federal income taxes are the same as US federal income taxes in 2016, which are also the same as those in 2015. https://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Marginal_tax_rates_since_2008

The South makes up 41% of the Atlasian Population and 37% of its GDP. For arguments sake, lets say 40% of this revenue is from the South.

40% of 41 is 16.4. That means that if we were to subsidize the federal income taxes of every Southerner earning $39,275 or less, it would cost us $16.4 billion.

As the bill currently stands, it subsidizes all of the federal income taxes of those earning less than $13k and half of the taxes of those earning up to $20k meaning that it would cost much less than $16 billion. Our current surplus is $42 billion.

Thoughts?

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The idea of increasing the limit half refunds from $20k to $25k was originally considered. Given the cost of the bill, I don't think it would hurt to do that.

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I third, if thats a thing.

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Aye

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Aye

I was expecting you to vote Nay.

It was a tough call