LC 2.28 Resolution to Establish the Budget of the Lincoln Government (Debating)

[Pyro]

Mr. Speaker and Fellow Councilors,

We have before us the task to formally establish the budget of our region. In the estimated figured as noted above, our expenditures outweigh our revenue by an intimidating margin, meaning we must, by law, find and codify additional sources of revenue to offset the costs in our baseline expenditures or reduce spending to match the revenue supply.

I may represent the Government and that of the Left in these budget discussions but I am not deaf to the concerns of each side. We will need to make some tough decisions in order to reach a balanced budget, and it is my expectation that we hear everyone out and, ideally, come a consensus on how to proceed.

It would be my position that we avoid cutting spending in any of our crucial social and economic welfare programs, including healthcare and education, in order to achieve this task. The working people of Lincoln depend on these services and it would do them a great disservice to cut such programs unless all other possible options have been exhausted.

We have several avenues for growing our revenue. These shall be debated, presumably at length, in this session of Council. For instance, Lincoln presently does not levy a tax on corporations, nor on financial transactions. I would personally oppose it at the present time, but Lincoln also does not levy a sales tax.

I look forward to these discussions as we accomplish what prior sessions of Council and Assembly have failed to do and prepare a budget outlining the finances of our region. Thank you.

[Pyro]

The only tax increase I would support is a Land Value Tax. Anything steals from the fruits of ones labor.

To clarify, how is a Land Value Tax different than a property tax and would it actually raise more revenue?

Property tax punishes people for building a house which steals from the fruits of one labor. LVT only taxes the value of the land and any minerals in it. The origin of owning land IMO is not very fair because it was simply planting a flag or whatever and claiming it.

That's absurd. A property tax does not punish people for building a house. Real Property taxes are in place in order to ensure that the community in which the home is located is adequately funded - ie, education, public services, etc. Ideally it should never be levied on those who cannot afford it, but it is disingenuous to call it a punishment.

[Pyro]

The amendment is friendly.

[Pyro]

Mr. Speaker, I offer the following amendment.
This lays out the tax proposals with the projected deficit now reduced to $131.91 B.

For now, the capital gains tax has been put on hold. It will be adjusted and recalculated, to be added later.
More so, the financial transactions tax and the tax on covered liabilities will need to be calculated further as well.

IN THE LINCOLN COUNCIL

A RESOLUTION

Establishing the budget for the Lincoln Government lasting from July 2019 until June 2020

Resolved by the Lincoln Council convened,

Expenditures

Health - $269.89bn + $1.49bn (L603) = $269.89bn

Pensions - $104.40bn + $0bn (LC 11.11) = $104.40bn

Education - $105.19bn + $ 35.63bn (L505, L601, L 12.9, L 13.06) = $140.82bn

Defence - $0.10bn + $0.03bn (L 11.22) = $0.13bn

Transport - $54.18bn + $0.48bn (L 15.6) =$54.66bn

Welfare - $40.93bn + $0.22bn (L 11.4.2, L 14.9) = $41.15bn

General Govt - $20.27bn + -$0.11bn (L513, L 15.9) = $20.16bn

Debt Interest - $23.30bn

Protection - $23.83bn + $4.86bn (L 6.4.3, L 7.3.1, L 10.16.5) = $28.69bn

Other - $31.44bn + $0.98bn (LC 1.13) = $32.42bn

One time additional spending - $39.54bn (L 6.5.1, L 7.1.1, L 7.4.2, L 7.5.1, L 9.10.5, L 10.16.5, L 10.26.5, L 11.17, L 15.3)

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TOTAL EXPENDITURES - $ 755.80 billion

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PROPOSED TAXES

Income tax
0.0%    $0 - $24,999 ($0 B)
10%    $25,000 - $49,9999 ($13.19 B)
15%    $50,000 - $99,999 ($56.40 B)
20%    $100,000 - $249,999 ($118.42 B)
25%   $250,000 - $999,999 ($71.51 B)
30%   $1,000,000 + ($41.87 B)

Rates remain the same for married couples filing jointly, but brackets are doubled.

Alcohol Tax
2% ($1.16 B)

Tobacco Tax
2% ($0.57 B)

Cannabis Tax
10% ($2.09 B) + $1.25bn (L10.25.4) = $3.34bn

Other drugs tax (L10.25.4) = $0.58bn

Excise Taxes
Gas: 30.0 cents per gallon ($13.35 B)
Diesel: $0.50 per gallon ($7.41 B)
New automobile purchase tax (by curb weight): $120 per thousand kilograms ($1.02 B)

Luxury Tax
15% ($3.24 B)
25% ($5.40 B)

Wealth Tax
1% ($49.50 B)
Total Wealth Tax with Lincoln Population Multiplier = ($15.42 B)

Property tax
0.0%    $0 - $24,999 ($0 B)
5%    $25,000 - $49,9999 ($15.53 B)
10%    $50,000 - $99,999 ($54.57 B)
15%    $100,000 - $249,999 ($78.63 B)
20%   $250,000 - $999,999 ($24.21 B)
25%   $1,000,000 + ($7.60 B)

Estate Tax
15%  $10,000,000 - $19,999,999 ($0.61 B)
15%  $20,000,000 - $49,999,999 ($1.66 B)
20%  $50,000,000 + ($6.79 B)
Total Estate Tax with Lincoln Population Multiplier = ($2.82 B)

Corporate Tax
0.0%  $0 - $99,999 ($0 B)
5%   $100,000 - $499,999 ($0.27 B)
5%   $500,000 - $999,999 ($0.16 B)
10%  $1,000,000 - $4,999,999 ($1.00 B)
10%  $5,000,000 - $9,999,999 ($0.68 B)
15%  $10,000,000 - $24,999,999 ($1.94 B)
15%  $25,000,000 - $49,999,999 ($1.82 B)
15%  $50,000,000 - $99,999,999 ($2.22 B)
15%  $100,000,000 - $249,999,999 ($3.83 B)
15%  $250,000,000 - $499,999,999 ($4.45 B)
15%  $500,000,000 - $2,499,999,999 ($21.09 B)
15%  $2,500,000,000 + ($141.91 B)
Total Corporate Tax with Lincoln Population Multiplier = ($55.86 B)

Carbon Tax (LC 2.20)
20$ per metric ton of CO₂: $35.03 B

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TOTAL REVENUES - $545.91 B
TOTAL REVENUES - $623.89 B
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PROJECTED DEFICIT - - $ 209.89 B
PROJECTED DEFICIT - - $ 131.91 B

[Pyro]

Aye.

[Pyro]

Aye, overall this is a solid bill that protects the little majority of Atlasia. My one gripe is the gas tax not structured to be more progressive, so as to ensure that the payments are fair. I will ensure a bill to correct this mistake later on.

That is an excellent idea.

[Pyro]

Lincoln Council is now in Final Business Period

The Second Council of Lincoln will dissolve at Midnight EST July 16th

[Pyro]

I hoped for a final passage prior to the end of this Council session, however considering our present time constraints alongside the necessity for several additional legislative amendments prior to a final vote call, we will need to resume debate on the Budget Resolution next session following its re-introduction.