SENATE BILL: Fair Taxation Act (Law'd)

[Southern Senator North Carolina Yankee]

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Sponsor: TNF

[Southern Senator North Carolina Yankee]

The sponsor has 24 hours to begin advocating for this.

[TNF]

Sales taxes are the most regressive taxes that are administered by the Regions on a daily basis. This bill would make sure that the essentials are exempted from sales taxation at the Regional level while also limiting the amount of money that can be raised from sales taxation, in effect, capping it and forcing the Regions to find other ways to fund their day to day operations that do not unduly harm the working people of this country.

[Goldwater]

I would like to offer an amendment:

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[TNF]

Amendment is friendly.

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Friendly
Status: Senators have 24 hours to object.

[🐒Gods of Prosperity🔱🐲💸]

The ban on taxes on educational material is going to be hard to do. A book may be either educational or not under that definition, depending on its use, so how is the seller going to determine that?  An educational tax credit is a better approach, and we already have that.

[TNF]

The ban on taxes on educational material is going to be hard to do. A book may be either educational or not under that definition, depending on its use, so how is the seller going to determine that?  An educational tax credit is a better approach, and we already have that.

I would be fine with not applying a sales tax on books as a substitute.

[windjammer]

So the sale tax would be banned? I support this bill but would It be possible to let the region one year for cutting the sale tax? It could lead to important budget cuts if we haven t time.
Thanks

[TNF]

So the sale tax would be banned? I support this bill but would It be possible to let the region one year for cutting the sale tax? It could lead to important budget cuts if we haven t time.
Thanks

It would only be banned on the aforementioned products and capped at 3% in each region. I am also fine with making sure that this doesn't go into effect until 2015, as a means of protecting vital services in the short run while Regional governments devise new means of taxation.

[President Tyrion]

So the sale tax would be banned? I support this bill but would It be possible to let the region one year for cutting the sale tax? It could lead to important budget cuts if we haven t time.
Thanks

It would only be banned on the aforementioned products and capped at 3% in each region. I am also fine with making sure that this doesn't go into effect until 2015, as a means of protecting vital services in the short run while Regional governments devise new means of taxation.

Yeah, this needs to happen, because God knows the Pacific can't handle losing that much revenue. Hell, you don't have to be God to know that . I'd probably even prefer to defer it for a couple years, because this is a huge change.

However, I wholly agree that the sales tax is incredibly regressive and not the best way of generating income.

[TNF]

Offering an amendment:

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[President Tyrion]

Wonderful

[Chancellor Tanterterg]

Looks good

[DC Al Fine]

I think a better approach would be to mandate a sales tax credit for low income individuals rather than cap sales taxes at 3%.

[windjammer]

Offering an amendment:

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You re à great senator TNF. . You could even go further by prohibiting the sale tax after 2020!

[Talleyrand]

I think we should change the date to January 1, 2015. If we pass this by the end of the month, the regions will have a good 10 months to reform their respective tax codes.

Offering an amendment:

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Here's my proposed amendment.

[TNF]

Amendment is friendly. I'm going to offer an additional amendment of my own here:

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[Goldwater]

I object to TNF's amendment. While I oppose taxing essential items like clothing and medicine, I don't support completely phasing out the sales tax as an option for the regions.

[Fmr. Pres. Duke]

Do regions rely on sales tax to pay for services like states do in the US?

If so, we must at least gradually phase it out rather than cutting it out entirely so they can adjust accordingly. This will force them to either raise income taxes or something else to provide for services. This is a bigger deal than some are really realizing.

[TNF]

Do regions rely on sales tax to pay for services like states do in the US?

If so, we must at least gradually phase it out rather than cutting it out entirely so they can adjust accordingly. This will force them to either raise income taxes or something else to provide for services. This is a bigger deal than some are really realizing.

Forcing them to raise income taxes is something I'm completely in favor of. The more progressive taxation we can employ, the better.

[windjammer]

Do regions rely on sales tax to pay for services like states do in the US?

If so, we must at least gradually phase it out rather than cutting it out entirely so they can adjust accordingly. This will force them to either raise income taxes or something else to provide for services. This is a bigger deal than some are really realizing.

In the Midwest, we have a 4% sales tax, (I wanted to cut this tax but impossible because of a risk of Midwest government shutdown), so with this bill, we would be forced to progressively cut this tax, and I totally favor it, sales tax is awful. I don't if a sales tax exists in the other regions.

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Origination
Status: Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

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[/quote]

Sponsor Feedback: Friendly
Status: Pending completion of prior amendment

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Sponsor Feeback: Origination
STatus: Objection filed by Seantor Goldwater, a vote to come once prior amendments are dispensed with.

[Fmr. Pres. Duke]

I am getting a lot of feedback from governors on this bill. I am not sure it will be feasible to enact given how much revenue they derive from sales taxes. Some are concerned that they cannot raise regional income taxes enough to cover the lost revenues they would face if this passes, especially if you factor in tax avoidance methods. At least with sales taxes, you cannot avoid them.

With all of that said, perhaps we could allow people under a certain income level to write off things like food, clothing and books on their federal tax return?

I don't want to put regions in a bad situation where they are forced to cut back their services because we have mandated them to stop levying sales tax.