Congress Gets Taxes Done Right

Day 840, 18:09 • Published in USA USA • by John Largo

As Senator from Georgia, I decided to write an article detailing why I support the most recent tax bill that looks like it will be coming from congress. You can read Sydiot's posting of the tax bill HERE



First, let me explain why we need a tax bill. Our economy is shrinking due to the recent world-wide Lana-induced deflation. Our nation's taxbase is shrinking, because people are leaving the country and quitting eRep all together. Our national budget consists of mostly military spending (with a little citizen retention thrown in), and our nation still needs an ever stronger military, so the budget is not shrinking. And finally we are renting Karnataka from India for strategic purposes, and do not yet have it accounted for in the nation's budget.



So now that you see why we need tax reform, let me address the changes in this bill.

1. All income taxes raised from 20% to 22%. This was a compromise to the originally requested 25%. We need money to keep our military strong, and this was a big source. I think employees will not feel as much pain at a 2% increase.
2. Food sales taxes (VATs) increase to 20% from 12%, this is a compromise from the originally requested 50%. With the low prices of food, the $ impact to each citizen should be minimal. This tax helps ensure that every citizen pays their taxes. Some citizens are RL well off enough to buy gold, so they can work for the minimum wage, and still prosper. But that means they do not pay any (or much) income taxes. This tax is harder to avoid, because everyone has to eat.
3. Sales tax (VAT) reductions on on weapons, gifts and moving tickets, from 8% to 6%. And you though all congress did was raise taxes! These tax cuts, paid for by the above tax raises, help ensure that eAmericans are buying low cost war making tools. We will continue to increase our military strength.
4. Increase all import taxes from 1% to 3% (except diamonds and infrastructure). This is pretty controvesial for the congressional economic think tank, and exemplifies the significant compromises made in congress to get this bill approved. On one hand all of the foreign importers who want to sell their cheap goods here (cheaper than US companies), will now have to pay more for this ability. They will likely raise their prices to cover the new tax, which in the short term will likely put in a bottom to the downward spiralling of our marketplace. But on the other hand, it amost guarantees that we will not be buying goods as cheap as we otherwise could.
5. Cut Strategic Reserve saving from 500 to 250 gold per week. Basically the idea is that you don't save money in a recession, you spend it to help end it.
6. Add a budget line for Karnataka for 300 gold per week. This is the rental agreement we negotiated with India. I believe it is fair.



I have heard all of the many tax proposals this term, and this one is, in my opinion, the best of them all. Everyone in the discussion gets a little of what they wanted, but no one gets 100% of their desire. After hearing all the varied and extreme viewpoints of our citizens, I am proud of this compromise and the hard work of your congressional representatives.