HB 1366: Reservation Reinvestment Act of 2019 (Passed)

[Mr. Reactionary]

So just something to put out here during the debate stage. The Revenue Enhancement Act as amended, which is awaiting a final vote in the House, increases the excise tax on alcohol from the present rate to $15 per proof gallon. The law has not yet changed however so Encke's numbers are for the time being correct. Just take note that if the revenue Enhancement act is passed, the net gain from the tax change proposed here will be reduced. A fix for that would be to dedicate the alcohol tax change from the revenue Enhancement act towards this bill to keep the numbers Encke offered steady, although Pericles has a bill claiming 90% of all revenue from the revenue Enhancement act so yall might have to figure that out since there may not be enough money for both.

[Mr. Reactionary]

So just something to put out here during the debate stage. The Revenue Enhancement Act as amended, which is awaiting a final vote in the House, increases the excise tax on alcohol from the present rate to $15 per proof gallon. The law has not yet changed however so Encke's numbers are for the time being correct. Just take note that if the revenue Enhancement act is passed, the net gain from the tax change proposed here will be reduced. A fix for that would be to dedicate the alcohol tax change from the revenue Enhancement act towards this bill to keep the numbers Encke offered steady, although Pericles has a bill claiming 90% of all revenue from the revenue Enhancement act so yall might have to figure that out since there may not be enough money for both.

Very well, I'll explore other options for raising revenue.

Id much more prefer you taking the alcohol money and Pericles getting none if you can negotiate it.

[Mr. Reactionary]

I would like to propose the following amendment:

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This move will fully cost the bill.
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Budgeting over longer than a year in-game is fraught with difficulties bit I have some numbers to see how we should proceed. Up until now, I have exclusively been calculating costs and savings on an annual basis. That includes the very unscientific policy of dividing unbroken down 10 year forecasts by 10, even though 10 year estimates are rarely the same amount each year. But its sort of what we have to do in a game with 6 federal elections per year.

As written, this bill has a 4 year cost of $110 Billion with $35 Billion due this year. Eliminating LIFO (along with 2 other inventory methods we can address after the above amendment passes) would generate an estimated $45ish Billion (not exactly sure since our in game tax base is different than real life and still needs calculating) over the same 4 year period, with about $6.5 Billion coming in year 1 and $13 Billion a year for the next 3 years before basically dropping to zero as taxpayers adjust to the new inventory method.

[Mr. Reactionary]

Lol. No idea. I think we've only done annual budgets/CRs thus far so its never really come up. Probably a legislative call which is why I included the increased revenue over 4 years. Personally, I think a rare exception like this is probably OK but from a gameplay perspective I dont think its wise to always permit it because accountability would basically go out the window since I can imagine certain legislators claiming something unfunded "meets paygo" based off phantom future cuts that will never take place or take place after the irresponsible party leaves Congress and cant be held accountable.

[Mr. Reactionary]

The other 2 inventory accounting methods that need to be eliminated along with LIFO, are the Lower of Cost or Market method  (LCM) and the Subnormal Goods method. Both are used less frequently than LIFO but were included in the numbers I found.

[Mr. Reactionary]

The other 2 inventory accounting methods that need to be eliminated along with LIFO, are the Lower of Cost or Market method  (LCM) and the Subnormal Goods method. Both are used less frequently than LIFO but were included in the numbers I found.