MA 2015 Budget (Passed)

[Unconditional Surrender Truman]

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Sponsor: Windjammer

[VPH]

Potential Changes I'd Like to See (If they're feasible):
+.4 billion to farm income stabilization and crop insurance [-.4 billion from the regional prison system]
Raise beer and wine taxes to $.40 per gallon
Raise marijuana tax to 35%
Invest those added revenues as such: (25% Surplus funds, 20% into social and family services, 10% training and employment, 15% to community development, 15% updating energy infrastructure, 25% to higher education)

[Hatman 🍁]

I'd like to see a cycle to work tax credit, to be offset by an increase in gas taxes.

[windjammer]

Basically,
My idea is to make the ME budget more progressive: introducting a property tax (10 per mille), and eliminating the sales tax (the most awful tax), income taxon low incomes, and restoring cuts in education.
But I need to make an estimate before.

[windjammer]

According to my calculus, a property tax of 1% would grant 60 Billion as new revenues.

According to the previous budget, the sales tax (3%) granted 45B, the income tax (0.5%) on the income<40,000$ granted 12.5B and the cuts in the education granted 2B.

Oooooh, that's wonderful, with a property tax of 1%, we could eliminate the sales tax, the income tax for those who get less than 40,000$, and restore the cuts in education.

I guess as well there was an economic growth. So it should be favourable to us too. I need to talk to Kal!

[Unconditional Surrender Truman]

Would it be possible for us to get an estimate on what portion of the population fits into each tax bracket?

[Hatman 🍁]

I definitely support removing the sales tax.

[Unconditional Surrender Truman]

I definitely support removing the sales tax.

As do I. This is something that could make a real impact on the lives of poor and middle class citizens.

[VPH]

I agree with the sales tax. What are thoughts on increasing the sin taxes?

[windjammer]

Would it be possible for us to get an estimate on what portion of the population fits into each tax bracket?

I will try to make an estimate when I will be back at home tomorrow.

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Would it be possible for us to get an estimate on what portion of the population fits into each tax bracket?

I definitely support removing the sales tax.

Glad to see we're going to get along on that.  I just want to add that the introduction of the property tax will bring 60B in additional revenues, isn't particularlty either. In the NE and the MW, the property tax is 3.5%. And in Michigan irl, the property tax is 1.6%.

When I will be back at home, I will propose an amendment with the new estimates.

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I agree with the sales tax. What are thoughts on increasing the sin taxes?

What is the sin taxes vivaportugal???

[Hatman 🍁]

Sin taxes are taxes on "sin" products such as tobacco and alcohol. I suppose marijuana could be grouped in there as well, although it is comparatively harmless. Personally, I'd add gasoline to the list, as its usage is more immoral than any of the others.

[VPH]

Yeah, and when I wrote that I agree about the sales tax, I mean I agree with scrapping it.

I wouldn't mind a higher gas tax either, but maybe with exemptions for trucking.

[windjammer]

I will update it tonight.

[windjammer]

sorry I'm really busy irl

[windjammer]

So first of all the complete estimate:
basically a growth of 2% (+5B) + an addition of a property tax of 1% (+60B)

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[windjammer]

My first amendment:

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-It restores the 2B cuts to education decided last year
-it completely eliminates the sales tax
-it completely eliminates the income tax for those who earn less than $40,000/year


Thought?
(I have an another amendment in mind but I will propose it later)

[Unconditional Surrender Truman]

This seems good to me. We're significantly reducing the tax burden on the poor and middle class while still procuring a decent surplus.

[Unconditional Surrender Truman]

Representatives have 36 hours to object to Windjammer's amendment.

[VPH]

So first of all the complete estimate:
basically a growth of 2% (+5B) + an addition of a property tax of 1% (+60B)

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First off, I agree with the amendment that's been proposed and I'd like to offer one as well. Once we can get a potential estimate of extra revenue from higher sin taxes the proposed amendment holds that 25% goes to community development, 25% goes to pollution control, 25% goes to training, and employment 20% goes into R&D tax breaks, and 5% goes to updating energy infrastructure.

[MyRescueKittehRocks]

Regarding the governor's amendment, is the addition of the property tax leading to the added expenditures in the education section of the budget?

You need to convince me of why we need to increase taxes in this region when our current structure is doing fine.

This is a formal objection to both amendments.

[Unconditional Surrender Truman]

A vote is now open on Windjammer's amendment. Please vote AYE, NAY, or Abstain. Voting will last 72 hours or until a majority has been reached.


Vivaportugalhabs, is that the final version of your amendment, or are you still working on the revenue estimates?

Also, JCL: the creation of a property tax allows us to eliminate the sales tax, eliminate the income tax for persons earning less that $40,000 a year, and still leaves us with enough revenue to increase education funding. This will amount to a tax cut for the people who need it most while only minimally increasing the burden on those who can afford it.

[Unconditional Surrender Truman]

AYE!

[VPH]

AYE

I don't 100% know how to generate an estimate. Do I just kinda eyeball it?

[Unconditional Surrender Truman]

I don't 100% know how to generate an estimate. Do I just kinda eyeball it?

This would be my idea (using the beer tax as an example):

Under the current tax rate, for every gallon of beer sold, we get 35 cents back. This generates roughly $0.8 Billion in revenue. Your amendment raises the tax per gallon to 40 cents, generating a yet unknown amount of revenue.

g=number of gallons sold

.35g= 800,000,000
.40g= ?

By dividing 800,000,000 by .35, we can determine the estimated number of gallons sold. Multiplying that number by .40 gives us our new estimate.

g=2,285,714,285
.40g=914,285,714 or $0.914 billion

In short, you divide the current revenue estimate by the current tax rate, multiply the quotient by the new tax rate, and voila.

[Hatman 🍁]

aye