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Craig Ashley

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"I've made a few requests to the ECB regarding their analysis of my tax proposal. However, if their initial findings hold, I'd reduce the corporate tax cut to 0.25 BP, bringing the total package in line with the 0.75 BP loss in revenue we planned on."

"As to fast tracking the EFMGCEA, as I am technically speaking the author of the bill this term, I cannot fast track it according to the GA floor rules. You'd have to ask the Deputy Speaker. My personal preference is that we deal with tax cuts and reform first. I don't suspect there will be a large debate on it. After that, I would be open to bumping EFMGCEA up and bringing it to a speedy vote."
 

unmerged(28894)

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Nevertheless, a 0.25BP cut in corporation tax is unlikely to lead to vast growth in the business sector nor companies pouring into the UPE.

Surely a 0.5BP cut to income tax would do much more for the average Eutopian.
 

Craig Ashley

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"Allow me to introduce the revised version."

The Tax Relief and Reform Act

The federal corporate tax rate shall be decreased uniformily as to result in a 0.25 budget points decrease in revenue under current economic conditions.

The federal income tax rate shall be decreased uniformily as to result in a 0.25 budget points decrease in revenue under current economic conditions.

The minimum threshold for each federal income tax bracket shall be increased uniformly as to result in a 0.25 budget points decrease in revenue under current economic conditions.

"So as you can see, there already is a 0.5 cut in income taxes. Half is an across the board cut for all tax payers, and the other half is dedicated towards raising the thresholds on the brackets, putting thousands of Eutopians in lower tax brackets, or no tax bracket at all."

"We can sit here and say 0.25 here or there isn't going to make a huge impact, but by that logic why cut taxes at all? Cutting corporate taxes does more than increase our attractiveness to foreign companies. It also frees up more money for companies that already here for internal investment and expansion, which in turn creates more jobs. Cutting income taxes frees up more money for consumer spending and personal investment. Two thirds of this cut is directed towards income taxes, the other third towards corporate taxes. Which I might is roughly the same ratio in overall dollars collected between the two."
 

unmerged(31558)

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"So as you can see, there already is a 0.5 cut in income taxes. Half is an across the board cut for all tax payers, and the other half is dedicated towards raising the thresholds on the brackets, putting thousands of Eutopians in lower tax brackets, or no tax bracket at all."

"We can sit here and say 0.25 here or there isn't going to make a huge impact, but by that logic why cut taxes at all? Cutting corporate taxes does more than increase our attractiveness to foreign companies. It also frees up more money for companies that already here for internal investment and expansion, which in turn creates more jobs. Cutting income taxes frees up more money for consumer spending and personal investment. Two thirds of this cut is directed towards income taxes, the other third towards corporate taxes. Which I might is roughly the same ratio in overall dollars collected between the two."

Mr. Leary, when will you inform the assembly that tax cuts do not assure positive growth in the economy or that even can hurt the economy? It is very possible that our citizens will use the money they recieve back to pay off debts instead of spend on goods. This means that the cuts would only leave our government with one less BP of revenue which could lead to government debt.

Members of the assembly, tax cuts are not a sure thing and could hurt our economy. I ask that we at least be sure of consumer confidence before we pass these cuts.
 

Craig Ashley

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"There is nothing in the ECB report that indicates tax cuts will harm the economy. They only state that they cannot make accurate predictions regarding how much growth will take place and when it will take place. Even if consumer confidence is low, tax cuts that allow consumers to lower their debt will raise consumer confidence. It will free up funds in the future."

"As to tax cuts cause debt for the government, frankly that is ridiculous. The budget amendment that recieved unanimous support from this body already factors in tax cuts equal to the amount I am proposing, and it has a surplus. Deficits will only come into play if this body increases government expenditures over and above the surplus we have."
 

Josephus I

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Any tax cut serves to stimulate the economy. Whether citizens use it to pay off debts (thus allowing future spending) or whether they spend it right away; only good can come of this.
 

unmerged(28894)

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May 9, 2004
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"Any tax cut causes some good. If the tax cut is too high, however, it causes more harm.

I do not speak as one implacably opposed to these cuts. I view the 0.25BP cut in corporation tax as unlikely to lead to increased revenue in this area or in greater wages for workers, and would prefer to see 0.25BP spent in the economy or given to the citizens. Nevertheless, the passage of this bill would not give me too many sleepless nights.

None of this means that Per Florian does not have legitimate concerns, however."
 

Craig Ashley

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"Well, unless anyone has anything new to add, I think we can move this bill to a vote."

"Next on the agenda is the Vehicle Exhaust Regulations Bill, authored by Per Lucescu."

Vehicle Exhaust Regulations Bill


Preface – The purpose of this bill being to establish better standards for the exhaust outputs of atomized vehicles and lay the foundation for a more environment friendly Eutopia.

Background – Emissions from single cars are generally low, relative to the smokestack image many people associate with air pollution. But in many of the country’s most populous cities, the personal automobile is the largest polluter, with the exhaust thousands of vehicles on the road adding-up. Auto emissions are by-products derived from, mostly, the burning of fuels to encourage locomotion and the evaporation of fuel itself. In “perfect” combustion oxygen in the air would convert all hydrogen in the fuel into water and all the carbon into carbon dioxide. Combustion is not, however, perfect and the average car emits several pollutants into the air that damage the environment.

Article I – Manufacturers of steam and internal combustion engines are subject to the reduction of emissions from their machinery. Machinery subject to this new standard includes automobiles, trucks, SUV's, buses, motorcycles and any other conveyance that uses such engines as well as supplemental power generators. The main focus of this act is solely upon tailpipe exhaust, nothing that further improvements might seem idealistic from our starting point;

Tailpipe Exhaust – Tailpipe exhaust is usually associated as the main source of pollutants from the average observer. In order to cope with Eutopia’s lack of standards but still remain economically feasible, this bill will attempt to instate slight standards similar to those mandated within the United States as of 1981. The slightly modified standards are, thus, 0.39 gram per mile total hydrocarbons, 3.4 grams per mile carbon monoxide, 1.0 gram per mile nitrogen oxides. In forcing those reductions, the output of other measurable toxins will be reduced further.

Article II – In order to offset the cost of imposing these regulations, within a period of three years, Eutopian manufactures will be granted a tax credit of the value of X [As per recommendation of GA and ECB.] The credit will be granted up untill the point at which a company complies. To ensure that companies do not exploit this fact by dellaying their changes, a "check-up" of the company's activities with regards to preparing to comply will be held at the one year mark.

Article III – Those manufacturers that do not comply with the terms of this bill within a period of three years will be subjected to a fine proportional to the profits they have incurred from sub-par machinery sales.

Article IV – As this bill will act only as the foundation for a continued program of environmental cleaning, which will progress as funds are allotted, manufactures might find it prudent to exceed the new exhaust specifications rather than merely meeting them.
 

unmerged(4021)

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Mr. Speaker I am quite upset to see that you have ended debate when it was still quite active and before the budget has been resolved. If the President were to veto the legislation and the veto was upheld, just saying, then voting seperately on tax cuts is quite irresponsible.
 

Craig Ashley

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"I have not ended debate, but said if no one had anything new to add, we would move on. Since you both feel you have something else to add, please do. What I was doing was essentially issuing a legislative last call on the subject before it was brought to a debate. I will generally do this before bring anything to a vote to ensure all debate is fully explored."

"Now, what do you gentlemen have to add to the discussion?"
 

unmerged(28894)

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(OOC: In game terms, consider this as taking place after we've had our wrangle over taxes, OK?)

"I have a few comments I'd like to make on the Vehicle Exhaust Regulations Bill.

Firstly, I'd like to see higher standards than those instituted in 1981 in America. Now I'm not an expert on American exhaust regulations, but that's nearly two decades after Eutopia became a republics. International manufacturers are easily going to achieve such a standard and if Eutopian companies can't, they'll never be able to compete on the world stage and thus prosper. I'd prefer that at the very least we move it forward to the 1991 regulations.

I think the idealism clause can be deleted. Firstly it contains a typo. 'Nothing' should surely read 'noting.' Secondly, it adds nothing to the bill. The text only mentions tailpipe emissions, so a sentence specifically stating this to be the case is a waste of ink. Thirdly, I object to the implied association of unworkability with idealism. The two are not synonyms.

In addition, I am concerned about Article II. Certainly, I can see that an intermediate check-up is necessary. However, if we're going to give tax credits, I don't think it's a good thing for us to give them only until they comply, since there is still room for abuse. I'd rather not give the tax credits at all. Personally, I view it as exactly the kind of intervention in the market the PoL frequently objects to, the only difference being the benefactor. I say benefactor, because to my knowledge there is only one Eutopian automobile manufacturer of any size. If we're going to subsidise the change then I suggest we merely contribute a fraction of the costs of the changeover.

Finally, and most worrying to me, article III only provides that the fines be 'proportional.' Depending on the background of the individual in charge of applying the fine, the definition of proportional may change. Can we not name a fair amount, perhaps 150% of any profits made due to selling non-complying equipment?"
 

Josephus I

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Question about the exhaust bill. Given, I believe, that the majority of cars driven in Eutopia are imported (OOC...not aware that we have a huge, self-sustaining auto industry; I know we have something), will we implement the same regulation on imported vehicles?
 

unmerged(28894)

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It'd be foolish not to, surely. Certainly the language of the bill suggests that foreign manufacturers will also have to comply, as I suspect most already do. Of course, they aren't going to be subsidised if they have to make a change.
 

Josephus I

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It's all a matter of in what stage the changes are made.

If, for example, Porsche makes their cars in Germany and ships them here, it's quite feasible that the changes are made at the dealership service stations, here in Eutopia; whereby we can subsidize them still.
 

unmerged(28894)

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Can, perhaps. Do we need to? If capitalism is going to work, it needs the businesses that cannot cope with their environment to fail, not be bailed out by the government. We should only be giving subsidies where not doing so would be positively harmful to Eutopia.
 

HJ Tulp

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Cat Frightener said:
Can, perhaps. Do we need to? If capitalism is going to work, it needs the businesses that cannot cope with their environment to fail, not be bailed out by the government. We should only be giving subsidies where not doing so would be positively harmful to Eutopia.
"Actually no, if we would make an ideal capitalist economy we wouldn't have legislation like this. In the ideal capitalist economy consumers wouldn't buy cars that could be harmful for themselves. However we all know that the ideal 'something' is never going to be reality. That's why we need checks and balances. This bill is a check, now we need to balance."
 

unmerged(31558)

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Why dont we modifiy the existing vehicle exhaust bill and set a standard that all automotive companies that operate in Eutopia must have an active and well funded program for developing non-fossil fuel vehicles? We can even go a step further and give benefits to companies that produce non-fossil fuel vehicles.

I would also like to have restrictions as tight as possible but other then that, it looks fine.