MA: Mideast Budget 2012 (Statute)

[Gass3268]

I would also be in favor of raising taxes on upper income levels and even adding more brackets. The corporate tax rate could also be raised a little bit, but not too much more then its current rate.

[Gass3268]

Let's not complicate the system more by adding more brackets and making the bottom 1% of people pay 1% of their income and the top 1% pay 99%. We should not be looking at income tax increases, nor should we be looking at gasoline tax increases. We cannot seek to make everyday life for middle class Mideasterners more difficult. When gas taxes increase, it does not harm the rich, only the middle class. We must be sane in approaching our budget shortfalls. At this point, we can only cut spending and wait until the economy improves.

That's actually not a bad idea. I feel like Mr. X said it best:

Regardless, the Mideast regional government ultimately needs more revenue if we are going to pass a balanced budget (or even anything close to that).  Budget shortfalls are a revenue problem first and a spending problem second (and sometimes only a revenue problem).

I'll vote for a few cuts in spending, but for me its going to have to about 2:1 (added revenue vs. less spending)

[Gass3268]

That's actually not a bad idea.

It actually is a bad idea, because even if we as a region tax the top income bracket about 75% of their income whilst the Federal Government is taxing them 25% of their income, then they have no money! Wee! Then we have loads of poor people and the economy isn't flowing and then we have to tax people to pay for a stimulus to try to get things going but incidentally no one has any money left then the Government has all the money and the citizens have no money so the Government is handing out money to all the poors to try and get the economy going and once it does we're gonna take all that money back? That sounds incredibly absurd to me. I can't possibly envision how that might work in any way, shape or form.

I was somewhat joking. Yet I do think we can add a few more tax brackets and double the rates of the top income brackets. 6.5% is way to low!

[Gass3268]

What we need is a more progressive tax system with more tax brackets.

[Gass3268]

What we need is a more progressive tax system with more tax brackets.

No, we don't.

The current tax rates are not fair to the lower and middle classes. The wealthy need to pay there part to help our great region.

[Gass3268]

Here is my proposal:

0-30,000 0%
30,001-250,000 4%
250,001-1,000,000 6%
1,000,000+ 10%

The rich must pay their fair share back to the region

[Gass3268]

s

Here is my proposal:

0-30,000 0%
30,001-250,000 4%
250,001-1,000,000 6%
1,000,000+ 10%

The rich must pay their fair share back to the region

And why is "fair share" not 6%?  Shouldn't everyone pay their fair share?  Hence the "fair"?

The poor shouldn't have to say the same as millionaires. I withdraw my proposal and support TexasDem's proposal if we is willing to chance the brackets and rates a little bit. 

[Gass3268]

I agree with Mr. X

[Gass3268]

I'm willing to take a small progressive tax, with possibly only 2 or 3 brackets (though I prefer a flat tax). But I can't let it get too progressive - I don't too see too much of an increase, as the rich are already paying a pretty substantial tax rate from the federal government. I feel it'd be counterproductive.

We'll have to find some middle ground here, folks, as no one has a majority on this bill.

What if we only had increases for the top three highest-income brackets (corporate and income), kept the other rates the same, and didn't reduce the number of brackets?

I would go with that idea

[Gass3268]

Here is another proposal, removing one bracket, and changing the income tax rates slightly.

Income Tax Rate:
2%    $0 - $50,000
4.25%    $50,001 - $180,000
5.5%    $180,001 - $999,999
7%   $1,000,000+
1.5%   Employer contributions to pensions

Corporate Tax Rate:

0.5%    $0 - $75,000  
1.5%    $75,001 - $350,000
3%    $350,001 - $10,000,000
3.5%    $10,000,001 - $20,000,000
4%    $20,000,001-$70,000,000
5%   $70,000,001+

Thoughts? Ideas? Proposed changes?

What's clear is that neither a flat tax (supported by the Speaker, Governor, and Assemblyman 20RP12) or progressive system with more than four/five brackets (supported by Assemblyman Gass3268, Assemblyman Mr. X, and myself) can be enacted, so I hope this proposal, or the one I suggested earlier can be a sort of foundation for a middle ground.

Income Tax Rate:
1.5%    $0 - $50,000
3%    $50,001 - $180,000
4%    $180,001 - $750,000
5%    $750,001 - $2,750,000
6%   $2,750,001+
1.5%   Employer contributions to pensions

Corporate Tax Rate:

0.5%    $0 - $75,000  
1.5%    $75,001 - $350,000
3%    $350,001 - $10,000,000
3.5%    $10,000,001 - $20,000,000
4%    $20,000,001-$70,000,000
5%   $70,000,001+

I can live with this.

Would like a higher percent for the top bracket, but this is better.

[Gass3268]

Income Tax Rate:
0%    $0 - $13,000
3%    $13,001 - $250,000
5%    $250,001 - $999,999
7%    $1,000,000-$10,000,000
9%    $10,000,001+

As Assemblyman TexasDem wisely noted, neither side has enough votes to pass their ideal regional income tax rates.  The important thing is not to seek the rates we would pick were it up to us alone, but ones that we can live with.  This is a compromise that I can live with and one that I would urge both the Governor and my friends and colleagues in the Assembly to support!  Thoughts?

Can we change these two brackets to the following?

3%    $13,001 - $175,000
5%    $175,001 - $999,999

I like this a lot!

[Gass3268]

Would anybody consider a 5 cent bag tax? They have it everywhere around DC. It would help bring in a little revenue and it would also help encourage people you use their own reusable bags. 

[Gass3268]

Also I think we can still raise the income/corporate taxes, but it doesn't need to be as much as much as previously proposed.

Lastly, if we choose not to go the tax route, how do we get that last 1.64 billion?

[Gass3268]

I say that we vote on the Governor's amendment then go forward and pass this baby!

[Gass3268]

AYE

[Gass3268]

Ladies and gentleman, I believe we now have a balanced budget! Congratulations.

Nice work everyone!

[Gass3268]

Aye