SB 2016-031: Corporate Tax Reform Bill

[tmthforu94]

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[tmthforu94]

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[NeverAgain]

I am completely open for questions. This got bipartisan approval in my branch, and I hope it will get the same here.

If you are not a reader this basically lowers taxes on almost all small businesses, while paying for it with getting rid of abusable deductions by big corporations. This also creates 3 new corporate tax brackets to stop the current mass confusion with corporate tax and help simplify it. As said before, if you have any questions I am here.

On the matter of the cost, this will probably cost around 10B of upfront revenue (for the cost of the brackets over the next two years). But with clamping down on the unfair deductions and evasions, plus the enormous amount of GDP growth this will prosper from our businesses we could look at a huge increase in revenue.

[Pragmatic Conservative]

The house passed an amended version of this bill, part 1 of this bill is the same

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Section Six: The Creation of new Accounting Standards

i. Adoption of IFRS for publicly traded companies and prohibition against use of Atlasia GAAP
Currently many of our major trading partners have adopted the use of IFRS. It is time for Atlasia too adopt IFRS as well. IFRS also closes many of the tax loopholes that business currently take advantage of. 


ii. Creation of new financial accounting  standards by the Atlasia Financial Accounting Standards Board. Privately traded companies may use these new standards as an alternative to IFRS.  This will give the option for privately to use an alternative IFRS. While IFRS is regarded as the "gold standard" in accounting standards, the Atlasia government understands it may not be financially feasible for some privately traded companies to use IFRS. 


Section Seven: When this bill shall take effect.

i.Sections 1-5 shall take effect for the 2018 fiscal year. Section 6 shall take effect for the 2021 Fiscal year. 

Sponsor: NeverAgain

 

[tmthforu94]

For reference, it looks like this is what the corporate tax rates currently are:
Corporate Taxes (By Tax Bracket)
$0-$50K (15%): $ 16.3 B     
$50K-$75K (25%): $5.4 B   
$75K-$100K (34%): $6.8 B   
$100K-$335K (39%): $9.6 B   
$335K-$10M (34%): $22.8  B   
$10M-$15M (38%): $3.9 B   
$15M-$18.3M (35%): $15.2 B
$18.3M+ (35%): $245.0 B                           

[Blair]

I'd want to see a slight cut for the 50-75K bracket, perhaps to 20%

[tmthforu94]

I'd want to see a slight cut for the 50-75K bracket, perhaps to 20%

Well, under the proposed bill it is cut to:
• 100K - 1M: 15%
• 1M - 10M: 21.5%
• 10M+: 28%


FYI, thank you, Speaker NeverAgain, for writing this. I can tell it took a lot of work, and I think it looks great. Just for clarification, on your proposed corporate taxes, would businesses under 100K not pay anything?

[NeverAgain]

I'd want to see a slight cut for the 50-75K bracket, perhaps to 20%

Well, under the proposed bill it is cut to:
• 100K - 1M: 15%
• 1M - 10M: 21.5%
• 10M+: 28%


FYI, thank you, Speaker NeverAgain, for writing this. I can tell it took a lot of work, and I think it looks great. Just for clarification, on your proposed corporate taxes, would businesses under 100K not pay anything?

That is correct. As there are very few businesses in that range, I think it only fair that they are able to get a leg up before starting to pay their fair share. I thank you for your kind words, this was a hard thing to get done. I am just happy it will hopefully get passed!

[Terry the Fat Shark]

Debate continues on this bill.

[NeverAgain]

Again, if you have any comments or questions - please ask me.

[Terry the Fat Shark]

If there are no objections, I will be opening up a final vote on this bill later today.

[Terry the Fat Shark]

Seeing as there is no further debate and there were no objections to my motion, I am opening up a final vote on this bill. Senators will have 48 hours to cast their final vote on this bill.
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AYE

[The world will shine with light in our nightmare]

Aye.

[Blair]

Aye

[Senator Cris]

Aye

[Prince of Salem]

Aye

[Terry the Fat Shark]

This bill passes the Senate by a 5-0 margin and moves onto the President.

[NeverAgain]

double unanimous .

Thanks Senate.