Vetoed Financial Institutions Tax Act

[HKE101]

A

BILL

TO


Reduce the Burden of Corporate Tax on Financial Institutions


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 “Financial Institutions Tax Act”.
(2) This Act shall be enacted immediately upon its signage.
(3) This Act is proposed by Representative Hong_Kong_101
(4) This Act is co-sponsored by Senator f6rn


2 - Reasons
(1) Financial Institutions occupy an important place in the economy of Redmont, providing funds to players and businesses to engage in commerce, and providing safe places for citizens to store their hard-earned money.
(2) Due to the way they do business, as well as competition within the financial sector, banks are generally less profitable than other businesses such as supply companies, and taxing them on their company balances, which tend to be larger than those of other companies due to their role in the economy, is excessively burdensome.


3 - Section 1: Taxation of Financial Institutions
(1) A deposit-taking financial institution is defined as a financial institution that takes deposits of money from other legal entities, such as companies and private citizens, in order to profitably invest them and return a portion of the profit to its depositors.
(2) Deposit-taking financial institutions will be exempt from all balance taxes. Any previously passed law or order in contradiction to this provision will become invalid from the date of this Act’s promulgation.
(3) Deposit-taking financial institutions will be required to keep detailed accounts of their profits from investments as well as their obligations to their depositors. They will be required to report their net profit at the end of every month to the Department of Education and Commerce as specified in (a).
(a) Deposit-taking financial institutions will calculate monthly net profit by adding up their total revenue for that month, excluding unrealized gains on investments, and subtracting compensation paid to employees, interest paid on accounts, and the cost of producing any other product or service sold or provided by the institution.
(4) Deposit-taking financial institutions will be taxed on their monthly reported profit as specified in (3) at a rate of 25%. The Department of Education and Commerce will be obligated to send them a notice of the amount that they are obligated to pay the government at the end of every month according to this tax. In order to pay this tax, deposit-taking financial institutions will be required to pay the amount they owe to the DCGovernment ingame balance, and open a DEC ticket to inform the Department that they have paid their tax.
(5) Any provisions of any previously passed law or order in conflict with this Act will be considered invalid upon the promulgation of this Act.

 

[LilDigiVert]

Veto

This bill has been vetoed. Banks do not contribute positively to the economy, but rather serve as a tax haven for the wealthy to avoid paying their fair share to society (Response to Reason 1). It is not the government's job to coddle the banking industry, if they are less profitable, find other ways to profit (Response to Reason 2). This law does not have a punishment for banks that do not pay their taxes on time, and has no mechanism or punishment to prevent/punish lying or misreporting to the DEC.