Quote from: South American Tax Standardization Act
South American Tax Standardization Act
Powers and Responsibilities of Taxation
The federal government shall have the exclusive authority to levy taxes and grant power of taxation.
The Chancellor is entrusted with the collection of taxes on behalf of both federal and constituent governments.
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A tax levied by constituent governments are to be collected and distributed by the Chancellor to the constituent government which levied the tax.
Constituent governments are hereby granted the authority to levy personal income, business income, and consumption taxes that do not exceed 30% of the federal rate on each of these activities.
The federal government shall levy a progressive income tax with the following rates:
The federal government shall levy a consumption tax exempting food, clothing, and housing at a rate of 5%.
The federal government shall levy a flat business income tax at a rate of 15%.
The federal government shall levy a common tariff on all foreign goods at a rate of 5% of good value, adjustable via parliamentary action.
The federal government shall collect a Social Protection Contribution at a rate of 4%-of-income from individuals and businesses.
Households with <$25,000 in total annual income may claim a $1,000 income tax deduction for every dependent in the household, as defined by the Chancellor. For every $15 above $25,000, households lose $1 of exemption.
Civic, educational, religious, and charitable organizations are hereby exempt from income taxation and employer social protection contributions.
All contributions, financial or in-kind, made to tax-exempt organizations are hereby tax exempt.
This legislation shall go into effect immediately following the passage of the budget for the upcoming fiscal year.