Moderate Bank Tax Act

[Gluonmaster]

CONGRESS OF THE​

COMMONWEALTH OF REDMONT​

​

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A
BILL
To​

preserve banking but increase market liquidity​

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:


PART I — PRELIMINARIES
1 - Short Title and Enactment

(A) This Act may be cited as the “Moderate Bank Tax (MBT)”.​

(B) This Act shall be enacted immediately upon its signage.​

(C) This Act has been authored by Representative Gluonmaster.​

(D) This act has been sponsored by Representative Gluonmaster.​

(E) This Act has been co-sponsored by Representative Musclebound.​

(F) This Act amends the following acts:​

(i) Taxation Act​

2 - Reasons

(A) The goal of this act is to slightly reduce the amount of money locked up in bank accounts so that this money can instead be used for paying people to perform government jobs and new business grants. This money will eventually be used in the private sector to run commercial businesses and investing in the stock exchange.

(B) This act however seeks to not cripple the banking sector by keeping the rate flat, low, and monthly so that banks can prepare for these rates, so the rates don't compound uncontrollably, and so banks don't have to shift money around to get lower tax rates.

(C) The sponsor of this act would like to acknowledge Representative EmeraldGuuy for bringing deposit taxes into public discussion as well as providing some of the framework to implement this act. The sponsor is aware EmeraldGuuy has proposed various measures to implement deposit taxes however the sponsor consistently finds these measures too extreme in nature.

PART II — Contents

3 - Amendments to the Taxation Act:

(1) Part II, section 5 of the Taxation Act shall be amended:

5 - Financial Institution Taxation Exemptions
5 - Alternative Financial Institution Taxes
(1) Deposit-taking financial institutions will be exempt from all balance taxes, as defined in the Banking Act Commercial Standards Act (or succeeding acts).

(a) Exemption takes effect from the point of acceptance and registration from the Department of Commerce.​

(b) Exemption may be repealed by the Commerce Secretary or delegate if the institution does not meet the requirements of this Act.​

(c) Financial institutions which are classified under the Commercial Standards Acts as Commercial Banks that also receive a balance tax exemption shall instead pay a deposit tax.​

(d) The deposit tax shall be 1% monthly on money remaining in the account owned by the institution facing the deposit tax.​

(i) It shall not be considered a evasion of the deposit tax if a Financial Institution moves any of the money deposited in their account.​

(ii) The deposit tax shall be administered by either automatic plugin or if plugin is not implemented then by the Department of Commerce. The Department of Commerce may make any regulations necessary to enforce the deposit tax.​

(iii) This shall not apply should a financial institution successfully declare bankruptcy. See the Bankruptcy Act​

 

[antonfr]

Votes prior to Revote for Amendment H-74/37