Bill: Rejected Corporate Balance Regulation Act

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218218Consumer

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1975Consumer
1975Consumer
donator4
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A
BILL
To

Legislate Corporate Balance Regulations and Amend the Taxation Act​

The people of Democracy Craft, 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 “Corporate Balance Regulation Act”.
(2) This Act shall be enacted two weeks after its signage if and only if the August Taxation Amendment Act is also signed into law.
(3) This Act is authored by Speaker 218218Consumer.
(4) This Act was co-sponsored by Rep. FracturedGhast7.

2 - Reasons
(1) Rampant tax evasion is a constant, pressing issue with little enforcement against it due to a lack of clear guidelines. Balance limits and a mathematical definition of what constitutes tax evasion will strengthen consistency in auditing and provide the Department of Education and Commerce with a clear legal basis for cracking down against blatant abuses of our corporate balance system.
(2) One infamous tax evading practice frequently partaken in by corporate leaders is the deposition of thousands of dollars in the balances of companies unrelated to how such money was obtained; while to a moderate extent, deposits of this nature are normal and sensible for maintaining company functions without going bankrupt, business owners will frequently exploit the tax exempt status of corporate balances to store hundreds of thousands of dollars beyond what is necessary for paying suppliers or preventing bankruptcy in such balances, evading taxes. Balance limits would be a simple, enforceable regulation against this.

3 - Summary of Terms

This section of the Corporate Balance Regulation Act shall summarize and clarify this legislation through simple terms and examples, and this summary shall not be considered as legally binding or any addition to the Rules and Laws.

(1) If you have 1 company and over $50,000 in the balance of that company, the ratio of your corporate balance to your personal balance must meet a ratio of two to one or less. For example, if you have $80,000 in your company, you must keep at least $40,000 or more in your personal balance to subject a portion of your wealth to the balance tax.
(2) If you have 2 companies and over $60,000 in their combined balance, the ratio of your corporate balance to your personal balance must be two to one or less. For example, if you have $35,000 in one company and $45,000 in the other ($80,000 combined), you must keep at least $40,000 (50% of $80,000) or more in your personal balance.
(3) If you have 3 or more companies and over $70,000 in their combined balance, the ratio of your corporate balance to your personal balance must meet a ratio of two to one or less. For example, if you have $30,000 in one company, $30,000 in the second, and $20,000 in the third ($80,000 combined), you must keep at least $40,000 (50% of $80,000) or more in your personal balance.
(4) If you have several companies and the balance of any of them exceeds $50,000, the ratio of your corporate balance to your personal balance must meet a ratio of two to one or less. For example, if you have $50,000 in one company and $5,000 in another ($55,000 total), you must keep at least $27,500 (50% of $50,000) or more in your personal balance.
(5) If the sum of your corporate balances exceeds $200,000, you’ll face no legal obligation to keep over $100,000 in your personal balance, even if $100,000 is less than half of the sum of your corporate balances. For example, if you have $300,000 in a company, you’ll be obligated to keep only at least $100,000 in your personal balance instead of being obligated to keep $150,000 (50% of $300,000) in your personal balance.

4 – Added to the Taxation Act:
(1) Corporate Balance Regulations
(a) No player with one company may hold over $50,000 in a company balance unless the ratio of their corporate balance to their personal balance is two to one or less.
(b) No player with two companies may hold over $60,000 in the sum of their corporate balances or over $50,000 in the balance of a single company unless the ratio of their corporate balances to their personal balance is two to one or less.
(c) No player with three or more companies may hold over $70,000 in corporate balances or over $50,000 in the balance of a single company unless the ratio of their corporate balances to their personal balance is two to one or less.
(d) The personal balance requirements of s.1(3)a, b, and c shall be capped at $100,000, meaning no citizen shall be expected to store over $100,000 in their personal balance due to corporate balance regulation.

5 - Added to Commerce under Rules and Laws:
(1) Punishments for Violation of Corporate Balance Regulations:
(a) First offense: Warning and transfer of corporate balance funds exceeding the funds allowed under regulations to the personal balance of the offender.​
(b) Second offense: Fine of $10,000-$30,000 + transfer of corporate balance funds exceeding the funds allowed under regulations to the personal balance of the offender.​
(c) Third and subsequent offenses: Fine equal to the funds of the corporate balance and deregistration of the offender’s least valuable company.​

6 - DEC Jurisdiction
(1) The DEC shall be responsible for enforcing corporate balance regulations through regular spot checks.
(2) The DEC shall be responsible for notifying registered companies of corporate balance regulations.

7 - Nullification
This bill shall no longer be in effect upon the legal implementation of a corporate tax plugin.
 
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Nay - This wont fix tax evasion, this will just encourage companies to buy more plots and stocks (which results in less plots available for new/smaller companies), if you really want to fix tax evasion then you need to introduce a tax for assets, like plots and stocks(which would get companies to pay more taxes and encourage companies to own less plots/stocks, which would result in more plots/stocks for new/smaller comoanies).
 
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Nay - As Rein said, it will only encourage people to buy more plots and assets leading to new players without starting plots etc. I also believe the DEC doesn’t have the manpower to even regulate this, given their situation with the API and the protests which had to be compromised.
 
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