I was looking through the statute & I noticed this bill:
F.L. 10-2: Protection Act (Textiles, Clothing, Footwear & Steel)
1. Companies, co-operatives or self-employed individuals in the textiles, clothing, footwear and iron & steel industries shall receive a 5% cut in all corporate income tax and capital gains tax that that company, co-operative or individual pays.
2. Companies in the retail sector that only stock textiles, textile products and clothing made in Atlasia shall receive the same tax cut of 5%.
I'm thinking about introducing a bill to repeal it, but I wanted to hear from the constituents first.
There is another problem with Section 2 of the Act.
As the Act currently stands, a company in the retail sector shall only receive the tax break if it
only stocks textiles, textile products and clothing made in Atlasia, as opposed to companies that stock textiles, textile products and clothing made
only in Atlasia.
There is a difference, and as the Act stands, a retail store that stocks widgets, textiles, textile products and clothing, all of which were made in Atlasia would not be eligible to receive the tax break, as they stock products other than textiles, textile products and clothing. This effectively creates a tax incentive for a retail store to remove all nontextile products from their shelves if the after-tax revenue they receive on those additional products is less than the reduction in tax they receive on the revenue earned on all textiles, textile products and clothing lines stocked. It would almost certainly also create a disincentive for a retail outlet to stock additional products. This may have the unintended consequence of costing Atlasians their jobs in the retail sector.
Indeed, it creates the interesting circumstance, whereby a retail company stocking sewing machines, textiles, textile products and clothing all made in Atlasia is treated, for the purposes of taxation, exactly the same as a company which stocks all those same classes of products, none of which however were manufactured in Atlasia. The mere fact the first company stocks sewing machines makes it ineligible to receive the tax break, even on income derived from textiles, textile products and clothing - and even if all such items have been exclusivly made in Atlasia.
It is understandable that income derived by a retail company from the sale of goods other than textiles, textile products and clothing should not be granted a tax benefit under this Act: one would not expect to see a car yard stocking a single spool of Atlasian thread qualifying for a tax break, however there is no reason a retail store that stocks, among other things, textiles, textile products and clothing, receiving a tax break on revenue earned through the sale of their textiles, textile products and clothing, so long as all textiles, textile products and clothing stocked by that particular retil company are made in Atlasia.
