NE2: End Regressive Sales Taxation Act (Tabled)

[cinyc]

End Regressive Sales Taxation Act

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Sponsor: Rep. SomebodyWhoExists

Debate on this bill will remain open for 72 hours, or until around 10:15PM on Sunday, April 20, unless modified or extended.  The sponsor, Rep. SWE, is encouraged to speak on behalf of the bill within 36 hours.  If he does not, the bill will not be tabled, as there is no other pending legislation in the queue.

The floor is open for debate.

[SWE]

Thank you, Mr. Speaker.

I believe that the Northeast should not impose a sales tax. A sales tax is the most regressive form of taxation and impacts our poorest citizens more than anyone else. A citizen with a lower income would lose a larger percentage of their income than a wealthier citizen. For example, say a citizen making $250,000 and $1,000,000 both want to buy a $500 television. The Northeast imposes a 1% sales tax as of our most recent budget, so this would come to $505. The citizen making 250,000 would end up paying a tax of 0.00002% of their income, while the citizen making 1000000 would end up paying a tax of 0.000005% of their income. Someone making less should never end up paying a significantly higher tax than someone making more.  The sales tax is simply regressive and unfair.

[Deus Naturae]

Would this bill eliminate the regional sales tax, or would it just remove the "sales taxation" line from the default budget structure?

[cinyc]

How do you propose making up the over $15 billion that the sales tax brings in?

[Napoleon]

I oppose the repeal of the sales tax and will vote against this bill. And why shouldn't someone earning less pay the sameamount as someone earning more for the same exact thing? Obviously that is the whole purpose of earning more. And, for a relatable example, I probably have a much more comfortable financial situation than 99.9% of this forum (or country really) yet my personal income is rather modest as a young adult. The poorer person should look for a $400 television and try to get promoted at their company or whatever, earn a raise and buy a better tv when its more affordable for them.

[sentinel]

Would this bill eliminate the regional sales tax, or would it just remove the "sales taxation" line from the default budget structure?

Deus is correct, it would just remove it from the budget structure. It would still exist.


and I'll be voting against this bill for the same reason as Napoleon.

[#CriminalizeSobriety]

I agree with the sentiment.

However, as cinyc noted, we received ~$15 billion in revenue from the sales tax for this fiscal trimester. As I recall (need to do some investigation) we only had a surplus of $11 or $12 billion in sirnick's last budget, which hypothetically would put us at a deficit.

The sales tax is only 1%, which isn't excessive. Similarly, in my budget we repealed the income tax outright for families in the $20k-$49k bracket, which should provide some relief for working families.

[Deus Naturae]

After some thought, I've decided to oppose this. I guess I'm sort of a hypocrite here because I just introduced a bill to get rid of the energy spending section from the Budget Improvement Act, but when it comes to taxes I don't think any form of taxation should be favored over another in terms of the default budget structure. I will gladly work to eliminate the sales tax during the next round of budget negotiations, but for now I see no reason to take it out of the budget structure when it will have no effect on the regional tax code.

[sentinel]

Also, the Northeast by constitutional mandate cannot run a deficit I believe.

[#CriminalizeSobriety]

Also, the Northeast by constitutional mandate cannot run a deficit I believe.

Indeed, which makes such a prospect more precarious.

[SWE]

Also, the Northeast by constitutional mandate cannot run a deficit I believe.

I looked into it, and yes, the Northeast Constitution requires we run a balanced budget. In that case, passing this would simply be irresponsible. Motion to table.

[cinyc]

This bill has been tabled at the request of the sponsor.