Ministry of Economics, Resources, and Labor: Term X

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The VATA has been rewritten. Since you expressed a desire to contribute to it, I thought I'd come to you first before reproposing it in the assembly. This is what it looks like:

Value Added Tax Act (VATA)

1. DEFINITION: Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of deductions whereby taxable persons (i.e., VAT-registered businesses) can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved. It is not collectable on exports to countries not associated with the Central Atlantic Free Trade Association.

2. RATES: VAT tax will have three rates depending on category of product or service.

Rate Band I. A 0% VAT tax will include following product and service categories:
a. Infant products (any product or service designed for use by children under 2 years of age, from diapers to daycare)
b. Educational products, materials used by Eutopian educational system
c. Basic foodstuff, namely: Bread, Milk, Flour, Water
d. Medicines
e. All medical services other than elective plastic surgery
f. Used good solds originally purchased at a higher price.

Rate Band II. A 15% VAT tax will include following products and service categories:
(you fill this in)
This rate will increase to 20% effective at the start of Term XII. (and to 25% at the start of Term XII.)

Rate Band III. All products and services not mentioned in rate bands I. and II. will be taxed at 10% VAT rate.

3. Exemptions: The goods and services which are exempted from VAT are listed in Appendix A. Exempted goods and services consist principally of financial activities. Exemption from VAT means that the persons engaged in the exempt activity are not liable for VAT on their receipts and are not entitled to a credit or deduction for VAT borne on their purchases. It is emphasized that no persons are entitled to receive taxable goods or services free of VAT simply because they are exempt from charging VAT on their supplies.

4. VAT Credit on Federal Income Tax: Federal Income Tax payers may receive a credit for VAT paid up to a lesser of VAT paid or 2,000 ducats less 10% of income from employment or self-employment.

 

[jacob-Lundgren]

First off used goods should be taxed. Normal rate nothing fancy but if someone sells a dvd to a shop and they resell it there should be a tax on the sale.

For the high tax rate, first you need to fix the terms section, which term you mean for which %. But the items that should be higher taxed I would support would be a list along these lines: Wedding rings over 10k, all other jewerly/gems over 1k. If someone wants to spoil their spose with a fancy ring let them, if they want to buy a diamond bigger then my fist they will be taxed higher. Also major elective plastic surgery. The doctors can define major maybe something over 1500 in costs but some minor elective plastic surgury shouldnt be taxed. Lots of lower income people will have minor surgury of this sort and taxing them and then giving it back is just a big load of paperwork. Civilian vehicles over 40k for 2 doors cars and 60k for the rest. Houses not bought for rental or commercial purposes valued over 300k and lots with over 20 acres not for rental/commercial development. If someone wants to buy a small lot and build on it its their right to do so tax free. If you plan to build an estate or series of buildings ie pool, multiple sheds, house+guest house etc extra taxes are applied. All non business purchases of boats over 25k. TVs over 2500 also should receive the higher tax rate as well as personal yard equipment over 1500. If you want a mower that goes 35 mph thats your right but you dont need such an excess for yard care.


I would also request that 50% of all money raised be spent on economic development. If the economy improves there is by defult more money for other issues.

 

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I just added the suggestions you made pretty much verbatim, without the shiny legal wording. Is this more of what you're looking for though?

Value Added Tax Act (VATA)

1. DEFINITION: Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of deductions whereby taxable persons (i.e., VAT-registered businesses) can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved. It is not collectable on exports to countries not associated with the Central Atlantic Free Trade Association.

2. RATES: VAT tax will have three rates depending on category of product or service.

Rate Band I. A 0% VAT tax will include following product and service categories:
a. Infant products (any product or service designed for use by children under 2 years of age, from diapers to daycare)
b. Educational products, materials used by Eutopian educational system
c. Basic foodstuff, namely: Bread, Milk, Flour, Water
d. Medicines
e. All medical services other than elective plastic surgery

Rate Band II. A 15% VAT tax will include following products and service categories:
a. Wedding rings over 10k, all other jewerly/gems over 1k
b. Major elective plastic surgery (doctors can define)
c. 2 door cars over 40k
d. Civilian vehicles over 60k
e. Houses not bought for rental or commercial purposes valued over 300k
f. All non business purchases of boats over 25k
g. TVs over 2500
h. Personal yard equipment over 1500

This rate will increase to 20% effective at the start of Term XII. (and to 25% at the start of Term XII.)

Rate Band III. All products and services not mentioned in rate bands I. and II. will be taxed at 10% VAT rate.

3. Exemptions: The goods and services which are exempted from VAT are listed in Appendix A. Exempted goods and services consist principally of financial activities. Exemption from VAT means that the persons engaged in the exempt activity are not liable for VAT on their receipts and are not entitled to a credit or deduction for VAT borne on their purchases. It is emphasized that no persons are entitled to receive taxable goods or services free of VAT simply because they are exempt from charging VAT on their supplies.

4. VAT Credit on Federal Income Tax: Federal Income Tax payers may receive a credit for VAT paid up to a lesser of VAT paid or 2,000 ducats less 10% of income from employment or self-employment.

Where the money goes in an issue for the budget commitee. What do you mean about fixing the terms section for the higher taxes?

 

[jacob-Lundgren]

For lack of progress, I am passing a small but growing tariff on canadian lumber imports. It will start at a relativly tiny 1.5% and grow .5% each week till it reaches 25% or a decision is made to cancel it or increase it higher.

(also can i get some kind of idea of how bad the dumping is please? would help formulate a more qualified tariff counter so i dont look like an idiot )

(its growing tariff)

Now that we have made our point of willing to play hard ball, lets take this to the wto.(not sure how to go about tha )

I would like to meet with leaders in the lumber and construction industry as well as union representatives.

 

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A note arrives from MIDA Loic de Fourgéres.

MERL Lundgren,

The Zambonian RFP for lumber posted in the townhall looks interesting. Perhaps you can coordinate a response by a cooperative of local producers?

Regards,