As a citizen, I am very curious as to what exactly “variables” means? Second, how would you get a CG who agrees to use these variables, when simulating the current system is hard enough? Also since this commission is of players, why does this cost anything?
I have started work on a basic proposal of Comptroller reform.
Basically the first picture shows a 40% Federal rate and 60% state rate with no deductions assumed.
The formula works by adding the two rates together and squaring them. After that divide them by a chosen number and I chose 200. However this is arbitrary and the exact number can be changed. The square can also be changed although I believe the type of curve it creates is interesting as the tax penalty really starts to happen at super high levels.
With this tax rate the state would collect only 30% of the income in that bracket and not 60%. The federal government would only get 20%. However if the state reduces the rate to 35% or where the Laffer curve peak lies for total tax rate, the total revenue collected would increase from 50 to 53% despite a tax rate decrease. However the states own revenues would decrease from 30% to 25% or a 15% decrease. The Federal government would have an 8% increase.
If anyone else is interested in working on a model that works on a similar idea, please voice your support !
This basic variable is very crude and just a small proposal to explain my idea. If anyone wants the simple excel file feel free to pm on discord lfromnj#7220.
Other factors could include increased GDP/income growth within a bracket based on a tax cut or a spending multiplier based on government spending . This will be complex and take many hours for a small group to craft but it will be worth it. A solid 8-10 variables would make the budget so much more interesting !.
So Yes I brought up the "infamous " Laffer curve ,but the fact is that the Laffer Curve exists somewhere we just don't know exactly where. For this example it would be 75%
This is what variables meant for a good example. Other variables would include GDP multiplier, wealth tax reductions after each year it is in effect, etc. Again I want a multipartisan commision that is interested in this to work on it over a month or so and present it to congress later for full approval.
This wouldn't really be extra work for comptroller general as its just plugging in some stuff into an excel sheet.
Anyway I just figured most of this stuff has "research"cost added on and wanted to make it realistic lol.
I'll be a bit busy till Friday evening, I can explain a bit more then.