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

[Roblox]

Passing this budget needs to be our biggest immediate priority. Starting debate on this now.

There's nothing to debate until all state expenditures have been calculated and tallied.

Right, I spoke too soon. Still, we shouldn't leave something this important sitting around.

[AustralianSwingVoter]

Passing this budget needs to be our biggest immediate priority. Starting debate on this now.

There's nothing to debate until all state expenditures have been calculated and tallied.

Right, I spoke too soon. Still, we shouldn't leave something this important sitting around.

We have to, because there's literally nothing which can be done or debated about the budget until all 18 states' expenditures have been calculated and integrated into the budget. Which is precisely why the budget has been left sitting around for almost 3 months now.

[Unconditional Surrender Truman]

Passing this budget needs to be our biggest immediate priority. Starting debate on this now.

There's nothing to debate until all state expenditures have been calculated and tallied.

Right, I spoke too soon. Still, we shouldn't leave something this important sitting around.

We have to, because there's literally nothing which can be done or debated about the budget until all 18 states' expenditures have been calculated and integrated into the budget. Which is precisely why the budget has been left sitting around for almost 3 months now.

Perhaps if others would lend a hand with the calculations . . .

[Unconditional Surrender Truman]

An alternative to calculating the expenditures of every state would be to take a sample of the 21 state budgets (selected for regional variety), average out the numbers for each category of spending, and adjust it per capita to match the regional population. Thoughts?

[Unconditional Surrender Truman]

California 2019–20 (Source)
$005,336,000,000     Legislative, executive, & judicial
$001,438,000,000     Business, consumer services, & housing
$000,304,000,000     Transportation
$003,680,000,000     Natural resources
$000,193,000,000     Environmental protection
$041,929,000,000     Health & human services
$012,783,000,000     Corrections and rehabitation
$058,308,000,000     Education (K-12)
$017,502,000,000     Higher education
$000,138,000,000     Labor and workforce development
$001,286,000,000     Government operations
$003,413,000,000     General government (non-agency dep'ts, tax relief, local gov't, statewide expenditures)
$147,781,000,000     TOTAL

[Unconditional Surrender Truman]

Arizona 2020 (Source)
$05,171,325     Education (K-12)
$01,776,759     Arizona Health Care Cost Containment System (AHCCCS)
$01,131,776     Corrections
$00,730,924     Economic security
$00,440,900     School facilities board
$00,375,839     Child safety
$00,673,959     Higher education
$00,092,348     Health services
$00,995,269     Other
$11,389,097     TOTAL

[Unconditional Surrender Truman]

Nevada 2019–21 (Source)
$06,539,748,305     Health & human services
$03,554,301,289     Education
$01,304,579,027     Infrastructure
$00,943,077,683     Special purpose agencies
$00,826,299,273     Public safety
$00,713,749,857     Elected officials
$00,713,749,857     Commerce & industry
$00,261,335,003     Finance & administration
$14,698,544,122     TOTAL

[Unconditional Surrender Truman]

Utah 2020 (Source)
$00,150,549,000     Elected officials
$00,342,177,000     Adult corrections & board of pardons
$00,172,240,000     Courts
$00,257,278,000     Public safety
$01,700,360,000     Transportation
$00,142,639,000     Other capital budgets
$00,386,892,000     Debt service
$00,153,337,000     Administrative & technical services
$00,042,070,000     Heritage & the arts
$00,337,591,000     Business, economic development, & labor
$04,420,004,000     Health
$00,974,748,000     Human services
$00,932,406,000     Workforce & rehabilitative services
$02,309,126,000     Higher education
$00,293,037,000     Natural resources & energy
$00,164,932,000     Agriculture & public lands
$05,592,141,000     Education (K–12)
$00,006,991,000     Capitol preservation board, Department of Human Resource Management, & career services
$00,118,372,000     National guard & veteran affairs
$00,035,096,000     Legislature
$18,531,986,000     TOTAL

[Unconditional Surrender Truman]

Hawaii 2020 (Source)
$00,194,693,785     Accounting & general services
$00,053,676,224     Agriculture
$00,105,792,823     Attorney General
$00,334,002,676     Business, economic development, & tourism
$03,464,078,478     Budget & finance
$00,090,140,332     Commerce & consumer affairs
$00,109,245,761     Defense
$02,114,392,207     Education
$00,003,753,711     Governor
$00,053,647,183     Hawaiian home lands
$01,127,871,701     Health
$00,026,508,852     Human resources
$03,621,175,908     Human services
$00,475,057,156     Labor & industrial relations
$00,171,330,918     Natural resources
$00,000,977,555     Lieutenant Governor
$00,296,189,071     Public safety
$00,036,265,728     Taxation (dep't of)
$01,055,368,911     Transportation
$01,244,068,690     Higher education
$15,474,634,533     TOTAL

[Roblox]

Here's some Colorado information for "non-budget package" legislation.

DEPARTMENT
FTE
Corrections $10,584,303 $10,584,303 $0 $0 $0 0.0
Education 262,000,000 262,000,000 0 0 0 0.0
Governor2 10,057,960 10,057,960 0 0 0    0.0
Higher Education 218,825 218,825 0 0 0 0.0
Human Services 15,400,000 15,400,000 0 0 0    0.0
Judicial 7,417,731 7,417,731 0 0 0 0.0
Legislative 51,198,908 49,992,990 90,000 1,115,918 0    302.3

Revenue 817,000 817,000 0 0 0 0.0
TOTAL $357,694,727 $356,488,809 $90,000 $1,115,918 $0    302.3
1 Departments not included in this table do not have companion bills or placeholders as iden

[Unconditional Surrender Truman]

Thanks, Roblox! Would you happen to have a source for those figures?

Colorado YYYY
$010,584,303     Corrections
$262,000,000     Education
$010,057,960     Governor
$000,218,825     Higher Education
$015,400,000     Human Services
$000,007,417     Judicial
$051,198,908     Legislative
$357,694,727     TOTAL

[Roblox]

Thanks, Roblox! Would you happen to have a source for those figures?

Colorado YYYY
$010,584,303     Corrections
$262,000,000     Education
$010,057,960     Governor
$000,218,825     Higher Education
$015,400,000     Human Services
$000,007,417     Judicial
$051,198,908     Legislative
$357,694,727     TOTAL

Why yes!

https://leg.colorado.gov/sites/default/files/19lbnarrative.pdf

[Unconditional Surrender Truman]

I have just introduced legislation to reorganize the government as four ministerial departments, exclusive of the office of the first minister: Education, Health and Human Services, Justice, and the Home Office (an umbrella ministry overseeing Commerce, Defense, Indian Affairs, Interior, Labor, and Transport). This is a pre-measure to facilitate the assumption of state expenditures in the next budget. Based on the figures provided above, I have calculated the following per-capita dollar amount for each department which we will then project onto the regional population:

EDUCATION		$2,146 (per capita)		$195.282 B (total)
HEALTH & HUMAN SERVICES		$1,436 (per capita)		$130.676 B (total)
JUSTICE		$401 (per capita)		$36.491 B (total)
HOME OFFICE		$583 (per capita)		$53.053 B (total)

These figures exclude salaries paid to state governors, legislators, &c.

[Unconditional Surrender Truman]

COMMONWEALTH BUDGET
for the fiscal year of 2020

I. Revenues.
☞   Income Tax: $47,455,784,846$0K – $125K (0%): $0

$125 – $200K (2%): $1,817,828,865

$200K – $1M (5%): $17,164,944,312

$1M – $10M (10%): $15,153,263,189

$10M – $100M (15%): $10,080,744,669

$100M+ (20%): $3,239,003,811
☞   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: $61,232,026,604Fremont 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: $2,337,153,746

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: $321,142,966,047
TOTAL EXPENDITURES: $623,223,064,900
TOTAL SURPLUS: –$302,080,098,853

[Unconditional Surrender Truman]

List A.

PAACCA		$600,000,000
TILE		$405,000,000
PPDA		$500,000,000
Earthquake Act		$50,000,000
FremontConnect		$1,000,000,000
LFTR		$5,000,000,000
IPA		$50,000,000
Park Act		$750,000,000
Bank of Fremont Act		$1,540,457
Fremont Promise Act		$3,350,000,000
Urban Act		$250,000,000
Green Act		$20,000,000,000
Warren Act		$618,750,000
Mann Act		$150,000,000,000
Fremont Drug Tolerance and Prevention Act		$55,000,000
Climate Change Act		$1,000,000
Fremont Infrastructure Enhancement Act		$3,000,000
FremontConnect Extension Act		$10,000,000,000
Better Interchanges for Fremont Act		$500,000,000
National Guard Funding Act		$2,000,000,000
Fremont Rural Hospitals Act of 2019		$200,000,000
Korean Wars Memorial Act		$5,500,000
Pacific Railway Reauthorization Act		$10,298,400,000
Nebraska and Iowa Flood Relief Act		$250,000,000
Fremont Healthy Lungs Act		$1,500,000
Fremont Farm Bill of 2019		$5,000,000
Park II		$20,000,000
Frémont Missing Persons and Tribal Nations Act		$1,500,000
Alaska Permanent Fund Bailout Act		$444,000,000

[Unconditional Surrender Truman]

Deleted one-time appropriations that were still being counted towards 2020 for some reason.

List A.

PAACCA		$600,000,000
TILE		$405,000,000
PARTA		$4,618,000,000
CENORA		$10,424,400,000
PPDA		$500,000,000
Earthquake Act		$50,000,000
FremontConnect		$1,000,000,000
LFTR		$5,000,000,000
IPA		$50,000,000
Park Act		$750,000,000
Bank of Fremont Act		$1,540,457
Fremont Promise Act		$3,350,000,000
Urban Act		$250,000,000
Green Act		$20,000,000,000
Regional Heritage Act		$300,000,000
Warren Act		$618,750,000
Mann Act		$150,000,000,000
Fremont Drug Tolerance and Prevention Act		$55,000,000
Climate Change Act		$1,000,000
Fremont Infrastructure Enhancement Act		$3,000,000
FremontConnect Extension Act		$10,000,000,000
California Natural Disasters Act		$6,000,000
Better Interchanges for Fremont Act		$500,000,000
National Guard Funding Act		$2,000,000,000
Fremont Rural Hospitals Act of 2019		$200,000,000
Korean Wars Memorial Act		$5,500,000
Pacific Railway Reauthorization Act		$10,298,400,000
Nebraska and Iowa Flood Relief Act		$250,000,000
Fremont Healthy Lungs Act		$1,500,000
Fremont Farm Bill of 2019		$5,000,000
Park II		$20,000,000
Frémont Missing Persons and Tribal Nations Act		$1,500,000
Alaska Permanent Fund Bailout Act		$444,000,000

[Unconditional Surrender Truman]

Alright. Quite obviously we are going to have to find new sources of revenue in order to finance the assumption of state services: fortunately, we have many avenues of approach in this regard, as regional taxes have been relatively low hitherto.

I've taken the liberty of projecting a tiered corporate tax: this is derived from the FY2020 federal budget, adjusted for Frémont's GDP.

☞   Corporate Taxes: $102,451,130,034                                         
0-100K (0%): $0             
100K-1M (15%): $789,215,734               
1M-10M (21.5%): $1,523,753,700                 
10M+ (28%): $100,138,160,600

[Unconditional Surrender Truman]

On a related note, going off share of the GDP, a Wealth Tax like the one passed by Congress earlier this year would produce ~$18,431,943,600 by my rudimentary calculations. Together with the corporate tax rates proposed above, that would still leave us with a deficit of around $210 B.

[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.

[AustralianSwingVoter]

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.

[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.

[AustralianSwingVoter]

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.

My point is, depending on how we calculate it, we may well be taxing people near 100% of their income in the highest tax bracket, which I personally would rather avoid.
What I would suggest is in addition a small Sales Tax, perhaps 4-5%. Such a Sales Tax would still be the same or less than is currently levied on Sales in all but 4 states. Such a Consumption Tax would still mean Fremont has by far the lowest Consumption Tax rate in the Western World, remembering the average rate in Europe is around 20%.

[AustralianSwingVoter]

☞   Income Taxes                                        
$0K–100K (0%)
$100–250K (5%)
$250K–1M (10%)
$1M–10M (20%)
$10M+ (30%)

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

☞   Sales Tax                                        
Value Added Tax upon Goods and Services (4%)            

☞   Excise Taxes                                        
Alcohol (10%)
Tobacco (30%)
Gas ($0.20/gallon)
Diesel ($0.00/gallon)

☞   Misc. Taxes
Estate Tax (50%)

Proposing an amendment. If we can get a rough idea of where this would leave us in surplus/deficit terms I'd then be happy to increase/decrease tax rates accordingly.

[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?)

[AustralianSwingVoter]

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.

The estate rate was a typo. And I'm not slashing Income Tax rates for the uber wealthy. Under my brackets the rate levied is doubled for the high tax brackets (over 1m from 10% to 20%), the difference is that under your proposal the high tax bracket rates are tripled.

I am similarly perplexed as to why you are proposing a cut to the alcohol tax while raising the gasoline tax.

The Alcohol tax is a pure sin tax on bad behaviour, while the gas tax is to encourage manufacturers to produce more efficient cars and consumers to switch to more fuel efficient cars and move to electric cars.

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?)

A small sales tax of a few percent is entirely reasonable. With a rate of 4% Fremont would still have by far the lowest Sales Tax rate in the OECD. And 90% of Fremonters are already paying state sales taxes that are levied at 4% minimum, with most being far higher. A balance of income taxes and consumption taxes is important in any nation to ensure that the tax system both works to reduce inequality while also incentivising economic growth.

And any complaint about sales taxes being inherently opposed to reducing inequality is utter nonsense. What nations in the world have the highest consumption tax rates? The nordic countries, with their 25% VAT. And as the Nordic economies have long proven, a balance of income taxes and consumption taxes is needed to balance the needs of reducing inequality with increasing economic growth.