Vetoed Back in Black Act

[GoldBlooded]

A
BILL
To

Amend Financial Institution Taxation and the Taxation Act​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the 'Back in Black Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Senator xEndeavour
(4) This Act has been co-sponsored by: Senator xEndeavour

2 - Reasons
(1) Individuals with money in Financial Institutions currently pay no tax
(2) To continue to encourage banking, but also to find a happy medium in not making banks a safe haven for money.
(3) To consolidate taxation laws into the taxation act

3 - Rescind
(1) The following acts are rescinded: Act of Congress - Financial Institutions Tax Act (Revised)

3 - Financial Institutions
(1) As defined in the Banking Act

4 - Financial Institution Taxation
(1) Financial Institutions will be exempt from all automatic balance taxes.
(2) The taxation period will be from the start to the end of each month.
(3) Financial Institutions are required to report to the DOC the following in the first week of every month:
(a) total deposited funds held (player/client money held)
(b) total corporate funds held (funds owned by the financial institution)
(c) proof of payment of taxable balance

5 - Taxable Balance - Deposited Funds
(1) Taxation will be calculated at 2% per month.
(2) The Financial Institution is responsible for paying on behalf of their account holders/members/depositors.
Note this is currently 0%

6 - Taxable Balance - Corporate Funds
(1) Taxation will be calculated at 2% per month.
Note this is currently 0%

7 - Tax Exemptions
(1) No non-government agency, department or, entity will be fully or partially exempt from paying tax.
(a) Towns are an extension of the Executive and are protected by this clause.
(2) To enable the below financial institution taxation, all registered Financial institutions receive automatic tax exemptions due to their reporting obligations.

 

[LilDigiVert]

Veto

This bill has been voted because it would be logistically messy and discourage banking. I am a fun of the current FITA structure, and would encourage an increase in taxation through that model and/or other improvements to the system. I also believe that a 2% tax rate right off the bank would be too big of a shockwave for the sector, so in the event that a compromise is reached with this model of bank taxation, we should look to lowering the percentage and gradually increasing it. I support the idea that banks should pay their fair share and should not be tax havens, but this system seems to be too detrimental to the current banking ecosystem.