IDS Budget and Tax Committee

[Yelnoc]

     Actually, we never added in the income tax stuff. We already have a ~5.8% income tax rate, which will certainly eliminate the gap when accounted for.

So we multiply the tax paying portion of the IDS population by 5.8.  The question is, how many citizens of the IDS are taxpayers?

     According to ths, there was 142 million tax returns filed in 2008, or 28.4 million in the region. I once estimated the average income of a citizen of the region at $40,000, which translates into a payout of $2,320/person, on average. Multiplying that with the 28.4 million taxpayers, I get $65,900,000,000/year? That seems rather high, though I suppose it makes sense when we aren't taking tax credits directly into account, though there are some provided for elsewhere under regional law that we have already calculate (Southeast Educational Incentive Act, for one).

Whoa, whoa, whoa here!

I would insist we use this calculation instead. For determination of income tax revenue.

Fixed.  We're still 58 billion over.

[Yelnoc]

     Actually, we never added in the income tax stuff. We already have a ~5.8% income tax rate, which will certainly eliminate the gap when accounted for.

So we multiply the tax paying portion of the IDS population by 5.8.  The question is, how many citizens of the IDS are taxpayers?

     According to ths, there was 142 million tax returns filed in 2008, or 28.4 million in the region. I once estimated the average income of a citizen of the region at $40,000, which translates into a payout of $2,320/person, on average. Multiplying that with the 28.4 million taxpayers, I get $65,900,000,000/year? That seems rather high, though I suppose it makes sense when we aren't taking tax credits directly into account, though there are some provided for elsewhere under regional law that we have already calculate (Southeast Educational Incentive Act, for one).

Whoa, whoa, whoa here!

I would insist we use this calculation instead. For determination of income tax revenue.

     When I posted that, the personal & corporate income tax rates were different, so I don't think that doing it that way would have been valid. Now that they are the same, doing it that way should be fine. However, that means that we will have to eliminate the $32.5 billion that we calculated for the regional corporate tax, since the $61.65 billion accounts for that.

Fixed again.  We still have over a $25 billion surplus.

For Puerto Rico, I was thinking we could just take the average of each state category and assign that figure to Puerto Rico's expenses and revenues.  Is that ok or does it need to be scaled to population?  Once we figure that out we can go through and combine the two budgets.

[Yelnoc]

     Actually, we never added in the income tax stuff. We already have a ~5.8% income tax rate, which will certainly eliminate the gap when accounted for.

So we multiply the tax paying portion of the IDS population by 5.8.  The question is, how many citizens of the IDS are taxpayers?

     According to ths, there was 142 million tax returns filed in 2008, or 28.4 million in the region. I once estimated the average income of a citizen of the region at $40,000, which translates into a payout of $2,320/person, on average. Multiplying that with the 28.4 million taxpayers, I get $65,900,000,000/year? That seems rather high, though I suppose it makes sense when we aren't taking tax credits directly into account, though there are some provided for elsewhere under regional law that we have already calculate (Southeast Educational Incentive Act, for one).

Whoa, whoa, whoa here!

I would insist we use this calculation instead. For determination of income tax revenue.

     When I posted that, the personal & corporate income tax rates were different, so I don't think that doing it that way would have been valid. Now that they are the same, doing it that way should be fine. However, that means that we will have to eliminate the $32.5 billion that we calculated for the regional corporate tax, since the $61.65 billion accounts for that.

Fixed again.  We still have over a $25 billion surplus.

For Puerto Rico, I was thinking we could just take the average of each state category and assign that figure to Puerto Rico's expenses and revenues.  Is that ok or does it need to be scaled to population?  Once we figure that out we can go through and combine the two budgets.

     Scaling it to population would probably be wise. I am guessing that Puerto Rico is somewhat below average for population among states in the region.

I believe the population rankings go like:
Texas
Florida
Georgia
North Carolina
Tennessee
Alabama
South Carolina
Louisiana
Puerto Rico
Mississippi
Arkansas

I don't know how you would weight for population though.  :/

[Yelnoc]

     Average population for a state in the region is 7,352,934 people. The population of Puerto Rico is 3,967,288. So to estimate Puerto Rico, we should divide the regional numbers by 11 & then multiply them by (3967288/7352934), which gives us $17,270,000,000/year for its expenditures & $24,960,000,000/year for its revenues.

     Also note that the state-level income tax numbers are now zero following the passage of the IDS Budget Combination Bill. I calculated Puerto Rico's revenue taking that into account.

Great.  Look through the budget on page 14 and, if you don't see any mistakes, I will go ahead and combine it.

[Yelnoc]

     I get $311.7 billion for state spending & $531.9 billion for state revenue after the adjustments have been made. Regional numbers are basically correct. We should probably recalculate the tax break for nuclear plants since we reduced the corporate income tax rate, though the difference would be so small that it's not really worth it.

Updated.  And yeah, the nuclear adjustments can wait until after the combination.  Is there anything else?

[Yelnoc]

2011 Budget

Notes

• Base shall be understood to refer to the combined totals of the state governments minus Puerto Rico.
• Total shall be understood to refer to the combined totals of the state and regional governments minus Puerto Rico.

Regional Spending

Pensions
-Base: $3.81 billion
-Total: $3.81 billion

Health care:
-Base: $121.9 billion
-Total: $121.9 billion

Education:
-Base: $48.9 billion (post-Educational Hotfix Act - original figure was $0, real-life gross state figure is $73.4 billion)
-Tertiary Education/Other Capital Outlay-Higher Education/Southeastern Educational Incentive Act: $3.5 billion
-Pre-Primary through Secondary Education/Other Capital Outlay - Elementary and Secondary Education/School Choice Initiative: $56.4 billion
-Total: $108.8 billion

Defense:
-Base: $0.6 billion
-Total: $0.6 billion

Welfare:
-Base: $40.4 billion
-Total: $40.4 billion

Protection:
-Base: $21.5 billion
-Total: $21.5 billion

Transportation:
-Base: $28.2 billion
-Total: $28.2 billion

General government:
-Base: $7.4 billion
-Total: $7.4 billion

Other spending:
-Base: $18.7 billion
-Cultural Services/Pentagram Creation Act: $200 million (1 time expense)
-Puerto Rico: $17.27 billion (total spending of PR- PR is not included in any other category in Spending but the Total Regional Spending)
-Total: $36.17 billion

Interest: $7.4 billion (assumes that Regional Government does not have to pay its own interest)

Total Regional Spending: $376.18 billion (includes Interest)

Regional Revenue

Income Taxes:
-Base: $0 (state cannot collect their own income taxes)
-Corporate Income Tax/Tax-Corporate Net Income/Put the "free" back in Free Enterprise Bill: (see personal income tax rate)
-Corporate Income Tax/Tax-Corporate Net Income/Southeast Nuclear Energy Initiative, Chapter 4: -66.1 million (-0.0661 billion)
-Corporate Tax Rate: 8.6% (part of Free Enterprise Bill above - remember other provisions).
-Personal Income Tax Rate: 5.8% ($$61,650,000,000/year)
-Total: $61,583,900,000 or $61.5839 billion

Social Security Taxes:  
-Base: $15.1 billion
-Total: $15.1 billion

Ad-valorem Taxes:
-Base: $252.3 billion
-Excise Taxes/Tax-Alcoholic Beverage Sales/Southeast Alcohol Initiative, Section 8: $1.3127 billion ($1.00/proof liter or $0.385/gallon for beer, $0.909/gallon for wine, $3.31/gallon for spirits)
-Excise Taxes/Tax-Tobacco Products Sales/Southeast Tobacco Initiative, Section 6:  $0.04/cigarette ($6,034,000,000/year), $0.08/cigar ($80,000,000/year), $2.00/kg tobacco ($24,000,000/year)
-Excise Taxes/Tax-Marijuana Products Sales: $3.00/ounce ($48,000,000/year)
-Sales Taxes/Tax-Public Utilities Sale/Southeast Nuclear Energy Initiative, Chapter 4: 80% of standard electricity excise tax: $0
-Sales Taxes/Tax-Public Utilities Sale/Southeast Biomass Initiative, Section 3: 80% of standard electricity excise tax: $0
-Property Taxes/Tax-Property/Southeast Nuclear Energy Initiative, Chapter 4: n/a ($0)
-Transportation/Tax-Motor Fuel Sales/Transportation Commission Initiative, Chapter 3, Section 22: $0.08/liter ($17,284,230,161/year)
-Transportation/Tax-Motor Vehicle License/Fair Consequences Initiative, Section 3: $10,700,000/year
-License/Tax-Other License/Off-Shore Religious Organizations Initiative, Section 2: n/a ($0)
-Total: $277,093,630,161 or $277.093630161 billion

Fees and Charges:
-Base: $107 billion
-Other/Charges-All Other/Pentagram Creation Act: $5,700,000/year
-Other/Charges-All Other/Safe Roads Initiative, Section 6: $44,400,000/year
-Total: $107,050,100,00 or $107.0501 billion

Business and Other Revenue:
-Base: $132.5 billion
-Puerto Rico: 24.96 billion
-Total: $157.46 billion

Gross Public Debt: $598.7 billion (assumes that Regional Government has not accumulated its own public debt)

Rainy Day Fund: $25 billion

Total Regional Revenue: $618,287,630,161 (does not include Gross Public Debt or Rainy Day Fund)

$Balance: 242,107,630,161

[Yelnoc]

It is completed!!!  Hallelujah!  PiT and Badger, would you guys glance through it?  Unless you see any actual errors in my calculations, let's get this passed by the legislature before amending it to suit the region's policy.

[Yelnoc]

     The revenue for fees & charges should be $107,050,100,000.

Fixed.  Anything else?

[Yelnoc]

     The revenue for fees & charges should be $107,050,100,000.

Fixed.  Anything else?

     No, everything seems to be added up correctly now.

Very good.  I sent Badger a PM; once he approves it the legislature can pass it and we can be done with it.

[Yelnoc]

Badger said he was busy at work this week so no worries.  Just bumping this.

[Yelnoc]

This has my ok.  As the old speaker, would you guys do me a favor and pass it ASAP?

[Yelnoc]

I guess it's fine.  I have a vague feeling we're missing something, but I guess with no reality to bite us in the ass it works.  And I'm tired.  So let's pass it.

[Yelnoc]

Where is the debate on the adoption of the budget? I am lost...

In the thread legislature trhead.  And I thought the proposed 2012 budget had already eliminated fuel taxes.