Vetoed Corporate Taxation Amendment Act

[End]

A
BILL
TO

Amend the Taxation Act

The people of the Commonwealth of Redmont, through their elected Representatives and Senators 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 Taxation Amendment Act”.
(2) This Act shall be enacted immediately after it has been signed into law.
(3) Authored by Rep. xEndeavour
(4) Co-Sponsored by Sen. Derpy Bird

2 - Reasons
(1) Currently corporations pay a flat 1% taxation rate.
(2) To support small businesses, taxation should be progressive and lower than personal balance taxation.
(3) Large businesses with over $100,000 will have a minor taxation increase of 0.2%. This would be 1.2% with the equivalent personal balance tax being at 2%.

3 - Corporate Tax
(1) Subsection a changes to subsection b.

a. (1) Corporate Balances shall be taxed at a rate of 1% per week.
b. (2) Corporate Taxation Brackets
Bracket amounts are inclusive and shall be taxed at the following rates (daily):

Bracket	Taxation Rate (% per week)	Maximum Amount per week ($)
$0.00 - $2,499.99	0.0%	0
$2,500.00 and $4,999.9	0.4%	99.99
$5,000.00 and $9,999.99	0.6%	349.99
$10,000.00 and $24,999.99	0.8%	399.99
$25,000.00 and $49,999.99	1.0%	999.99
$50,000.00 and $99,999.99	1.2%	1,199.99
$100,000.00	1.4%	-

 

[Westray]

Veto

This bill is hereby vetoed.

This bill may have merit in theory but in practice is not feasible. As the Secretary pointed out, this would lead large businesses to seek other ways to evade the higher tax brackets and thus result in less income from these taxes. Closing potential loopholes for banks and financial institutions would be the best approach for this to be possible.

I cannot in good conscience sign a bill without the support of a department it impacts. These departments consist of professionals who have dedicated much of their time to specific subject matters. The Department of Education and Commerce indicated opposition to this bill on the basis explained above and that it hinders business development on the server.

A vast majority of the department and its leadership therefore felt that this bill should not be enacted into law.