Labor blocks tax cuts for Atlasian small businesses

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If you read the debate on the bill, I was supportive of small business tax cuts. I just don't think people making $300,000 need a tax cut.

I put forward an amendment in order to try and get a bill where there'd be common ground and which would pass, it was you who rejected that.

Well, you got your little soundbite. Good job.

I'm always supportive of tax cuts for working class people, very much including those who run small businesses but I don't think we should be cutting taxes for people who already have a lot of money.

I have an amendment. It uses the same brackets as the current income tax which makes comparison a little bit easier.

A HOUSE BILL
To reduce Taxation on Small Buisnesses
Be it enacted in both Houses

Section I: Title

- This bill shall be called the Small Business Tax Cut Act

Section II: Tax Cut

- Small Businesses who currently pay taxes at the income level will pay taxes at these new rates

0-13k: 5%
13k-50k: 7%
50k-125k : 15%
125k-250k : 20%
250k-500k : 25%
500k-1mil : 34%
1mil + :  39%

0-13K      4%
13K-50k    9%
50K-130K   21%
130K-210K  28%
210K-413K  34%
413K-441K  36%
441K+      40.6%

- Small Businesses who currently pay taxes at the corporate level will continue to pay taxes at the corporate level

Section III: Removal of Deductions and Loopholes

- The Carried Interest Loophole will be eliminated by taxing carried interest as ordinary income rather than as capital gains.
- The State and Local Tax Deduction will be capped at $30,000
- The New Mortgage Deduction cap will be $750,000

Compared to the current tax rates it makes these changes:

0-13K      7% --> 4%
13K-50k    12% --> 9%
50K-130K   23% --> 21%
130K-210K  29% --> 28%
With the rest of the brackets, no change.

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I'd also point out that the stimulus bill cut taxes significantly. Your argument that Labor and Peace members of congress don't want to cut taxes for people is simply wrong. Tax cuts for the higher brackets was always the area of contention, and if I was someone to grandstand I'd start a similar thread condemning right wing members for their support for tax cuts for the rich. This is an extremely dishonest and unproductive way of doing politics.

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Do people actually think a 300k buisness is extremely rich?

No, but that doesn't nessessarily mean they need a tax cut, or to phrase it better, need a tax cut over many people making a lot less. Ultimately, to have a good social safety net, you need to have revenue to help pay for it, so if you are cutting taxes, you need to draw a line somewhere.

I'd also point out that the stimulus bill cut taxes significantly. Your argument that Labor and Peace members of congress don't want to cut taxes for people is simply wrong. Tax cuts for the higher brackets was always the area of contention, and if I was someone to grandstand I'd start a similar thread condemning right wing members for their support for tax cuts for the rich. This is an extremely dishonest and unproductive way of doing politics.

I know you don't like it when your actions get fairly criticized, but how is having a legitimate discussion on ideological policy in a politics and government simulator any more dishonest and unproductive than you and your party wielding and maintaining power in near total secrecy through discord?

It isn't a fair criticism because anyone who actually read the thread knows that I am in favour of small business tax cuts. This specific proposal was rejected, not the idea of small business cuts as a whole. I approached the bill with an open mind and attempted to find common ground on it. Of course, "small business tax cut proposal fails because opponents criticised the fact that most of the benefits of the proposal went to people who are already doing alright" isn't a very appealing soundbite for election time. It is because I believe in honest debate and disagreement that it annoys me when I feel someone has misrepresented my views. Also, I'm not sure what sort of power you think I wield in secret. Anyone who's actually interested in my contributions to the game can read the house threads and see that I very much play Atlasia in public and I give my views on every bill that comes through the house, and I'm not particularly big on discord.

Do people actually think a 300k buisness is extremely rich?

doesn't fix the fact that business making 800k and 900k were also getting tax cuts

The amendment Labor introduced barely cut taxes for businesses making between 50k-210k and from 210k didnt cut taxes at all.


It was a terrible amendment that deserved to be voted down .



If Labor actually felt the problem was the tax cut businesses making between 500k-1m was making the could have made the 500k-1m group also pay 39% through an amendment and I would have voted for it .

Labor didn't propose the amendment, I did. If you were clearer at the time about exactly what your issues were with it, we might've been able to find some common ground. I'd also note that my amendment actually cut taxes more for earnings below 13k, which your proposal only lowered by 2%. All my proposal did was make the tax cuts more proportional to who needs them the most. It did decrease the overall tax cut but that also has to do with realism to some extent. If you cut tax too much without a clear plan to fill the hole in the budget, its only gonna lead to more problems in the long term.

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Answer me this do you think business income should be taxed the same as individual income

I understand that the income a business makes is different to the income an individual makes which is why I was/am willing to support some form of small business tax cut. I just don't think higher incomes should get these tax cuts.

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Answer me this do you think business income should be taxed the same as individual income

I understand that the income a business makes is different to the income an individual makes which is why I was/am willing to support some form of small business tax cut. I just don't think higher incomes should get these tax cuts.

This is a fundamental principle though and its not about tax cuts or increases it is about should businesses pay the same rates as individuals because the fact is businesses unlike individuals mostly reinvest that money into their own businesses which benefits our economy.


Also the fact that businesses making over 100k still would pay marginal rates at 20% is pretty bad and it should be significantly lower than that and also not giving tax cuts at all to businesses making 300k is pretty bad as well because they need tax cuts as well.

A business that makes $20k or $50k acts differently to a business that makes $300k or $500k so you can't apply the same principle throughout. Its straight forward to see how a business owner who makes $20k has to balance paying their bills and other personal needs with investing in their business, so you can see how a tax cut can directly help them with their personal financial security and with reinvesting in their business. But, the more money a business makes, the more it can afford to make investments without the need for tax relief.