B-016: National Defense Contribution Act, 1674

[Speaker Rejo]

National Defense Contribution Act, 1674
An Act to provide for taxation in order to fund the Defense of the Republic of Alduria, the Governance of the Republic of Alduria, and for other purposes.

BE IT ENACTED by the duly elected Parliament of the Republic of Alduria assembled, -

ARTICLE 1. Citation.

This Act may be cited for all purposes as the “National Defense Contribution Act 1674.”

ARTICLE 2. Establishment of an Income Tax

1. An income tax shall be assessed upon all persons earning income within the Republic of Alduria.

2. Income shall be defined as any monetary gain as a result of employment or income earned from capital gains.

3. Lawfully married couples may elect to file their taxes jointly rather than individually.

ARTICLE 3. Exceptions to Income Tax

1. Income tax shall not be assessed on any income earned from a retirement account, pension, or life, medical, or health insurance payout.

2. Income tax shall not be assessed on any active duty service members in the Armed Forces of the Republic of Alduria, nor on their spouses who shall file their taxes jointly.

3. Income tax shall not be assessed on nor shall any income tax return be filed by any single filer who shall earn less than 30,000 ecus in a calendar year or joint filers who earn less than 60,000 ecus in a calendar year.

4. The total amount of taxable income shall not include any amount set aside for pre-tax deductions such as insurance and retirement.

ARTICLE 4. Rate of Taxation

1. Single filers earning more than 30,000 ecus a year but less than 75,000 ecus a year shall be subject to tax on 5% of their gross taxable income.

2. Joint filers earning more than 60,000 ecus but less than 150,000 ecus a year shall be subject to a tax on 5% of their gross taxable income.

3. Single filers earning more than 75,000 ecus a year but less than 150,000 ecus a year shall be subject to a tax of 10% of their gross taxable income.

4. Joint filers earning more than 150,000 ecus a year but less than 300,000 ecus a year shall be subject to a tax of 10% of their gross taxable income.

5. Single filers earning more than 150,000 ecus a year but less than 500,000 ecus a year shall be subject to a tax of 15% of their gross taxable income.

6. Joint filers earning more than 300,000 ecus a year but less than 1 Million ecus a year shall be subject to a tax of 15% of their gross taxable income.

7. Single filers earning more than 500,000 ecus a year but less than 1 Million ecus a year shall be subject to a tax of 20% of their gross taxable income.

8. Joint filers earning more than 1 Million ecus a year but less than 2 Million ecus a year shall be subject to a tax of 20% of their gross taxable income.

9. Single filers earning more than 1 Million ecus a year shall be subject to a tax of 25% of their gross taxable income.

10. Joint filers earning more than 2 Million ecus a year shall be subject to a tax of 25% of their gross taxable income.

ARTICLE 5. Enforcement

1. The Secretary of Finance shall be charged with enforcing these taxes and shall be empowered to make reasonable regulations, rules, and orders to aid in that enforcement.

2. The Secretary of Finance shall be empowered to create regulations to require employers to deduct income taxes from wages during their payroll process.

3. An employer who fails to comply with reasonable regulations from the Secretary of Finance shall be subject to a fine of up to 100,000 ecus per day of non-compliance.

4. A single or joint filer who fails to report earned income shall be subject to a penalty of up to 25% of the total amount of funds they have not reported to be determined by the Secretary of Finance or their designee.

5. In the event a Court shall find that a single or joint filer has intentionally attempted to avoid paying taxes due to the Republic, they shall be subject to a criminal penalty of up to 10 years imprisonment and/or a fine of up to 1 Million ecus, in addition to restitution of paying all taxes due with a 25% penalty on the total amount of funds they have not reported.

6. The Secretary of Finance or his designated agent is authorized to enter into compromise negotiations with and agreements with respect to payment of delinquent taxes, provided that any of the aforesaid agreements involving a sum of one million ecus or more, prior to being signed and gaining legal effect, must be approved in writing by the Prime Minister.

ARTICLE 6. Commencement

This legislation and all the provisions therein shall come into force upon receiving proper constitutional approval.  

 

Parliament will now come to order to consider this bill, presented by the Prime Minister on behalf of the Government. 

The Chair now recognizes The Prime Minister.

[Alfonso Velez]

Madam Speaker,

Neither I nor the Government take the idea of taxation lightly. This party and this Government stand for low taxes and keeping the Government out of your wallet. We also stand for ensuring that our Republic has the resources it needs to defend itself and to ensure that we manage the finances of Government in a fiscally responsible way so that we are not holden to other countries by crippling debt which, in my view, is a national security risk. Given the recent developments in Corrada del Rio, it has become clear that we must prioritize our national security and defense above all other priorities, and therefore it is imperative that we all make sacrifices for the defense of the realm.

Maintaining its commitment to low taxation however, this Government has carefully crafted this bill to ensure that many citizens of this Republic do not need to pay any additional taxes at all. Those making under 30,000 ecus a year or couples making under 60,000 ecus are completely exempt from this contribution so that our hard working citizens who do not earn above these amounts don't have to worry about making a sacrifice that may put their financial security into doubt. 

The rest of the bill is carefully crafted so that higher earners contribute a portion of their income as they are able, and these rates are still significantly lower than the rates that exist in many other countries.

It is my greatest hope that once this crisis is resolve and our military is strengthened that we can lower or even eliminate this assessment to our National Defense, but until that time we must act to ensure we have the funding we need to achieve what must be achieved. Therefore, I commend this bill to the house and ask for the support of this Parliament.

[Speaker Rejo]

The Chair now opens the floor for general debate. All members may offer debate or amendments at this time. Debate shall last for no less than 48 hours.

[Alfonso Velez]

A freshman L&D MP who is a member of the "purist" faction of the L&D party rises to give a speech:

The Speech of Mr. Pilar Kelso:

Madam Speaker,

Everyone in this chamber knows or should know the hard work that the Prime Minister has put into addressing the recent crisis in Corrada del Rio. I'm sure the whole house will join me in supporting the efforts of both the Prime Minister and the President to address this situation. While I appreciate the words that the Prime Minister has said here today and can also appreciate the difficult position he is in, I and many members of my party are also in the difficult position of having to oppose this bill. I thank the Prime Minister in advance for his commitment to not whip this bill as a level 3 whip and his commitment to allow Cabinet members to vote their conscience in Parliament. This is an important concession to allow us to vote based on our conscience and beliefs.

Madam Speaker, I regret I must oppose this bill. The Prime Minister and I have a difference in opinion on this issue. Taxation is theft, Madam Speaker. While many in my own party may not accept that reality, I and those of us in the L&D party who embrace true Libertarianism do hold fast to this tenant. I can not, in good conscience therefore, vote for any taxation--even if it is requested "for the good of the Republic" as the Prime Minister says. Theft is theft, period, and therefore taxation must not be tolerated. We must live within our means--even when it is most painful for us to do so. The Prime Minister ought to find the money somewhere else, rather than force contributions from hard working citizens of this Republic. Therefore, I ask Parliament to reject this bill.

[Natalia Cotilla]

Madame Speaker,
 
If the more extreme and fringe elements of the governing party are objecting – I think that is a good sign for this Bill.
 
No one likes taxation. I concede that. But how are we expected to pay for the services the people of Alduria deserve? Now, more than ever, we need a tax policy that does not penalize industriousness and meets the needs of the people.
 
It is crucial that we pass this bill. Taxation is evil, but it is a necessary one. 
 
I yield.

[Seydlitz]

Honorable Speaker,

I beg leave to extend debate on the measure in accordance with our rules, and yield.

[Alduria]

One of the Communist Party MPs, Leonel Fournier, addresses the chamber.

Comrade... Madam Speaker, (laughs) if I may.

What we're seeing here on display today is a faux debate. This is window dressing. The rug that covers the stain.

When this country was founded, we all had a collective dream, and that was to build a nation worthy of becoming the home to many of Micras' destitute and nationless. Our purpose and our values lie in that dream. A dream of peace. A dream of fairness. We dreamt of getting a fair shake. Building institutions that would outlast us. A country that we could call home.

This debate and this very bill attack the heart of that dream.

This is the continued pettiness of the bourgeois hijack of our country. The petty bourgeoisie opposes every kind of state interference, accounting, and control, and that's exactly what we need more of to steer the ship towards that dream we once held.

What this bill will do is deepen the hold that a million tentacles of this petty-bourgeois octopus now has that encircle the workers and steal that dream. The taxing rates here are a joke. The rich should be paying a lot more - a lot more.

Raise new revenues by imposing 70% tax rate on incomes over 1 million ecus.

Impose a financial transaction tax on stock market speculation.

That's how we'll fund the defense of our country.

But we can't do this on the backs of the working class. We already suffer too much, while many profit off of getting every drop of oil they can from our lands, while many toil to make others richer and richer. I refuse to let this be our fate.

I yield.

[Seydlitz]

Madam Speaker,

I move to amend Article 3, 1 to include the words, "...or life or medical or health insurance payout."

I yield.

[Alfonso Velez]

Madam Speaker,

I'm happy to accept the Honourable Gentleman's amendment as friendly.

[Speaker Rejo]

The amendments offered by Mr. Seydlitz have been accepted as friendly and are incorporated into the bill.