You have been taxed!!

[nonette]

The government has now taxed 1 (one) Tolar from your account.
Taxation and renumeration shall be conducted on Thursdays (NZT), and an update on your balance can be attained by PMing yours truly.

[Michael Dervin OCS]

I am outraged, the Tax rate is Ocia is way to high, honestly, One Tolar is a bit Much!!!! LOL :-)

Is there any Tax Credits one can get or Tax Free Benefits or Tax Back on anything?

Plus, could you please send me my balance to my PM so I can cry about how poor I am after the Tax man has come and taken away all my hard earned cash?

Yours etc...

Michael

[Matt Kovac]

This is something that should be deliberated in ocian national Assembly.

[nonette]

What sort of things do you have concerns about? I had thought that taxation was always to be part of the economy.
I think that this thread is an appropriate place to discuss any issues - as it is directly related to the banking process.

[Matt Kovac]

What needs to be debated is the percent of taxes the government of Ocia takes out of our salaries. Perhaps 12%. We need a pay scale for our government employees and we need to divided the amount of takes that is going to be charged by the week. This tax idea you proposed is great, and its a good way to build up our economy.

[nonette]

How about 12.5%, i.e. 1/8 - it would make calculation easier. Minimum of one Tolar per week taxed- as I see it the main purpose of taxation is to encourage more frequent posting, and periods discourage periods of inactivity.
I think that you are best placed to make the first suggestion on salary levels.

[Matt Kovac]

Ok I agree. I will Have a salary chart by tommorow.

[nonette]

Just as a side note: I am aware of the fact that it would be unfair for me to recieve payment while I was away also.

[Michael Dervin OCS]

Well, I agree with the setup of a Tax System that is Fair and Equal to All Citizens of Ocia, but perhaps there should be a system which treats the Those who cannot afford to pay 12.5% Tax or simply aren't able to pay that amount and have a decent wage left.

Therefore, I think the Tax System should have several Tax Bands for People of Different Wage/Salary Income:

1. For the High Wage Earners: 20%
2. For the Middle-High Wage Earners: 15%
3. For Low-Middle Wage Earners: 12.5%
4. For the Unemployed and others: 10%

This way we will insure there is no large gap between Rich and Poor and will keep the re-circulation of wealth equally around the citizens. This is just a rough plan as I have no idea what the Salary rates are here in Ocia (e.g. What a High Rate would be?)

Next, I think the Prime Minister/Minister of Finance should make a Budget up for this and the next fiscal year to see what the Government is expected to earn and what the money will be spent on.

[Matt Kovac]

Very good ideas. To Nonnette, you should be paid ever hear of paid vacation?

[nonette]

I suppose so. It would make it fairer to others needing a break..

Here is what I shall do to address the taxation issue:
-Firstly I will take note of how many posts are made by each account over the next week.
-I will detemine some appropriate tax brackets, levy the tax accordingly and inform you of the decision, the result and my reasons.
-I will then note the post counts for the week thereafter, and see how the system has worked. And I will report on the findings, whether the system seems to be fair, whether the system has increased or decreased equality etc.
-I shall attempt to make a forecast of the government earnings from taxation under the revised system, from which the spending options can be better illustrated.

[Michael Dervin OCS]

Sounds great, I will be very interested to see how this thing works out.

[nonette]

In total 218 posts were acknowledged today in the UNB as qualifying for renumeration. Please note that this does include retrospective acknowledgement of at least 38 posts made prior to the last 7 days. 5 new accounts were opened in accordance with new policy, including the first foriegn government account opened on Adraisia's behalf.
The spread of incomes was analysed, and the following is the first draft of the inaugral fiscal incomes policy (all amounts in SIT, and income is weekly income):
For incomes between 0 and 20.00: 1 + 5% of income after 8
Between 20.01 and 50.00: 1.6 + 12.5% of income after 20
Above 50.00: 5.35 +25% of income after 50

NB. Earnings of 20 would incur tax of 1.6, and earnings of 50 would incur tax of 5.35.
After implementing the above, a total of 29.39 was levied, bringing the UNB account to a balance of SIT1.39. I have therefore taken it upon myself to authorise the minting of 500 more Tolars, bringing the total money supply to 1000 Tolars.

This system does levy a higher proportion of tax on low income earners, but the proportion of income retained does increase up until the 20th Tolar earned in each week. This could act as a contribution incentive, however I do think that I may need to rethink the low income end margins a bit, and/or add another tax bracket.

The real test of the system is next week, where it will become apparent what usage levels typically are.

EDIT> As always, you can PM me to request a statement. I can provide income, tax, balance, and proportion of income retained information. I do not however keep an historical record of your a/c information.

[Matt Kovac]

Nice going.

[Michael Dervin OCS]

Nice, it looks very workable. Do you have the projected spending of the Government?