B-016: National Defense Contribution Act, 1674

[Alejandro Campos]

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.  

 

[Alejandro Campos]

Having been approved by Parliament, I hereby sign into law and consent to the
B-016: National Defense Contribution Act, 1674,