Franzl Tax Cut Bill (Failed)

[MasterJedi]

Franzl Tax Cut Bill

Section 1: In an effort to provide relief for struggling lower and middle class families in this time of economic crisis, Atllasia recognizes the economically stimulating effect of responsible tax cuts and will provide these accordingly.

Section 2: Families with a total income of between $30,000 and $75,000 will have their federal income tax rates reduced for 2009.

Section 3: The exact tax cuts are as follows:
a.) $30,000 - $49,999: 3.5% lower (in total, independent of current tax brackets)
b.) $50,000 - $64,999: 2.5% lower (in total, independent of current tax brackets)
c.) $65,000 - $75,000: 1.5% lower (in total, independent of current tax brackets)

Section 4: This tax cut scheme will expire immediately after 2009, but may be renewed or renegotiated based on economic conditions at that time.
Spon: Sen. Franzl

[Franzl]

I think this would provide a good stimulus in the current economic atmosphere. I'm open to amending this to every familiy under $75,000 ,upon further reflection

[Purple State]

Do we have an actual tax code on the books?

[Franzl]

Do we have an actual tax code on the books?

unfortunately not....so all this, like many things concerning exact amounts of money...is all theoretical

[Associate Justice PiT]

     I don't like tax cuts, but given the current state of the economy as well as their early expiration date, I would be willing to support it.

[Marokai Backbeat]

Do we have an actual tax code on the books?

Unfortunately, not to my knowledge, (I've searched all over the Wiki for a tax code from time to time, or at least any reference to a tax structure, nothing! There are increases and cuts, but nothing related to an actual tax code.) which the Senate really should do sometime, honestly. In any case, this is a terrible idea anyway

Carry on!

[Purple State]

I think this is acceptable for the reasons PiT stated. However, I would like to establish some sort of internal commission to craft an Atlasian tax code.

[Franzl]

I think this is acceptable for the reasons PiT stated. However, I would like to establish some sort of internal commission to craft an Atlasian tax code.

I'd like to see a tax code be created as well.

[afleitch]

I believe our income tax code is unomdified. So essentially it's the US code...barring the effects of 2007 Income Tax Reduction Act.

Best place to start off.

[Franzl]

Yeah I agree with the notion that we should create an entire tax code and everything, that would make this somewhat more interesting, but until that time, I think we should just keep doing things the way we have been...using somewhat imaginary indefinite sums, as in this piece of legislation.

I request a vote.

[Bacon King]

I like this bill, but we do need a general codification of the tax system, or at least the rates.

[MasterJedi]

As there has been 72 hours and no real debate in the 24 hours and a vote has been requested I hereby open up the final vote on this bill. Please vote Aye, Nay or Abstain.
Aye

[Franzl]

Aye

[afleitch]

You got in just before I was able to table an amendment. I apologise, as I have not been able to devote much time to this until this evening.

The current bill will grant tax reductions for incomes between $30K and 75k. My Income Tax Reduction Act (2007) reduced the 10% US rate to 0%. It was assumed at that time, that our tax system was based on the US system.

Franzl's bill pays no regard to that bill (and gives no tax cut to incomes below $30k) By using the word 'family' it does not differentiate between how tax returns are filed and could be construed to offer no tax cut to those who file single person tax returns.

As such I vote Nay.

[Franzl]

Based on what Afleitch said (and I agree with him), I'm changing my vote to NAY.

I'll re-introduce something similar to this soon.

[MasterJedi]

And also because of that, since we can't really stop votes, I change my vote to Nay as well. And because Afleitch didn't get his amendment in in time I'll put the new bill Franzl works on in the PPT's discression slot ASAP.

[Purple State]

What they said.

Nay

[afleitch]

Based on what Afleitch said (and I agree with him), I'm changing my vote to NAY.

I'll re-introduce something similar to this soon.

If we can still use this for debate, i'll explain. The 2007 bill essentiually set a precedent on the tax system.

As such the current structure is as follows;

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Year_2009_income_brackets_and_tax_rates

with the exception that the 10% bracket for the purposes of taxation is now 0%. However the bill also said the brackets would be adjusted 'for inflation' leaving the lowest bracket untaxed, so essentially the US 10% bracket (which in Atlasia is 0%) may have a different threshold. This will have to be looked at.

The starting points are simple;

1. We use the US system by precedent.
2. We tax 0% on the 10% US bracket (Income Tax Reduction Bill)
3. We tax an extra 0.5% above income over $500,000 (Help Atlasia Study Act) which it seems has introduced a new tax bracket for indeterminate incomes above 500k, given the thresholds in place.

So 0%, 15%, 25%, 28%, 33%, 35% 35.5% (on 'incomes' above $500k)

[Associate Justice PiT]

     Nay

[Smid]

In this case, Nay. We really need a wide-ranging tax bill that will repeal the earlier tax acts and put it all together in the one place. Bacon King and I discussed it briefly in the last Senate, but we never took it further.

[RI]

Abstain.

[afleitch]

In this case, Nay. We really need a wide-ranging tax bill that will repeal the earlier tax acts and put it all together in the one place. Bacon King and I discussed it briefly in the last Senate, but we never took it further.

Agreed.

I will however fight with every breath to retain the 0% tax rate for low earners within any new tax code, even extend it in some form if the will is there.

[MasterJedi]

This bill has enough votes to fail, Senators now have 24 hours to change their votes.

[Smid]

In this case, Nay. We really need a wide-ranging tax bill that will repeal the earlier tax acts and put it all together in the one place. Bacon King and I discussed it briefly in the last Senate, but we never took it further.

Agreed.

I will however fight with every breath to retain the 0% tax rate for low earners within any new tax code, even extend it in some form if the will is there.

I certainly agree with a tax-free threshold for all income earners - with a progressive tax system, 0% for the first $10,000 or something like that.

[Bacon King]

nay