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

[Unconditional Surrender Truman]

After considering all the options and running the numbers (as well as I can without a GM or a pronounced ability in mathematics), I am recommending the following tax brackets for 2020:

☞   Income Taxes                                         
$0K–125K (0%)
$125–200K (5%)
$200K–1M (15%)
$1M–10M (30%)
$10M–100M (45%)
$100M+ (60%)

☞   Corporate Taxes                                         
$0–100K (0%)           
$100K–1M (20%)              
$1M–10M (40%)                
$10M+ (60%)

☞   Misc. Taxes
Estate Tax (50%) 

This would leave the region with a surplus of slightly more than $10 billion.

[Unconditional Surrender Truman]

those income tax rates are too high, remembering they are on top of federal income tax. The top tax bracket would be paying about 110% in income tax under this proposal.

The brunt of federal income tax brackets are focussed on the upper middle class, with the highest bracket covering everything from the low hundred thousands on up. There's really no reason anyone should be earning in excess of ten million dollars a year; I'm not going to raise taxes for working families holding down two jobs apiece so Rockefellers can continue to exist.

[Unconditional Surrender Truman]

Why has the estate tax been slashed? You can't justify that with the same argument re: income, and at present the tax only applies to inheritances after the first $10 million dollars. It's not a huge source of revenue, but if you're going to slash income tax rates for the uber-wealthy you are in no position to be turning away billions of dollars. I am similarly perplexed as to why you are proposing a cut to the alcohol tax while raising the gasoline tax.

For obvious reasons, I am not a fan of the sales tax, and I'd like to see the math to demonstrate that the original proposal would result in the top bracket forking over 100% of their incomes when combined with federal taxes. (At risk of appearing condescending, the member does realize the 60% rate only applies after the first $10 M?)

[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.

[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.

[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

[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.

[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!

[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!)

[Unconditional Surrender Truman]

With four members in favor and one opposed, the motion carries; we will now move toward a vote. Members will vote Aye, Nay, or abstain. Voting will last 48 hours or until all members have voted.


Aye!

[Unconditional Surrender Truman]

With five members in favor and none opposed, and with two days to spare, the resolution carries!

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

done at the City of Denver, this day
29 December 2019