Ministry of Revenue and Treasury Policy Reviews

Public Secretary's Notes: Below are a collection of policy possibilities within the Ministry of Revenue and Treasury. Any reported costs or income will be per quarter.

Existing Policies

Alcohol Tax

Note: Medically there is a clear case for the government to tax alcohol in order to discourage consumption because of its negative effects on health and its possible links to social breakdown. On the other hand, those who drink socially see the government benefiting from such a tax to be hypocritical.
Present Assessment: 30%
Possible Range: 0% - 75%

Capital Gains Tax

Note: Capital Gains is a tax levied on non-salary income such as stock market profits and share dividends, and profits from selling property or other assets. Primarily it affects the wealthy and business owners, and will raise more money if the economy is booming. Because it taxes profits from investments, it also acts as a slight deterrent to investment and thus be detrimental to the economy.
Present Assessment: 10%
Possible Range: 0% - 50%

Corporation Tax

Note: A direct and proportionate tax on the profits of business. Some argue that this should be the only form of taxation, others that such taxes stifle entrepreneurship and discourage people from starting a business. It is often one of the main ways the government brings in money.
Present Assessment: 15%
Possible Range: 0% - 50%

Empty Home Assessment

Note: A tax levied on homes that are mostly left empty, generally second homes owned by the wealthy and used for a month or two each year. Popular in rural communities where wealthy buyers from other regions push up property prices meaning that many young people and the less well-off cannot afford to buy at all.
Present Assessment: 5%
Possible Range: 0% - 20%

Goods and Services Tax

Note: Sales tax is the classic 'regressive' tax, which means it does not take into account the ability to pay. Critics argue that this affects the poor disproportionately and thus increases inequality. Supporters argue that it is relatively easy to collect and affects everyone, and is thus fair. Businesses can be opposed to the administrative burden of the tax.
Present Assessment: 7%
Possible Range: 0% - 50%

Land-Value Tax

Note: Unlike traditional property taxes, a land-value tax does not take into account anything built on the land. It only taxes the value of the land itself. This leads to an incentive to build and develop on the land, which can cause GDP growth and opens up development in urban areas rather than urban sprawl. The wealthy will be unhappy with such a tax on one of their best assets.
Present Assessment: 10% Possible Range: 0% - 75%

Luxury Tax

Note: A tax aimed specifically at the high spenders in our society. A surcharge is added to high value luxuries such as sports cars, private yachts etc. Although it is never a vast source of income, a luxury goods tax can be popular with those people concerned with the gap between rich and poor. A luxury goods tax could encourage high earners to live and work elsewhere.
Present Assessment: 9% Possible Range: 0% - 90%

Progressive Individual Income Tax

Note: One of the most popular ways to raise money for government is a direct tax on peoples earnings, deducted at source by their employer. Income tax is generally a progressive tax (the wealthy pay more as a fraction of their income than the poor) and for this reason it is popular with socialists and the low paid.
Present Assessment: 35%
Possible Range: 1% - 90%

Property Tax

Note: Property tax is a tax levied on the value of homes. The valuation is often made by a government body, and the money is used to fund local government services (at least in part) such as the provision of street lighting and emergency services. Some see it as a fair tax which mostly affects those who own large homes and are wealthy, others see it as an unfair tax on retired people with large homes but little actual income.
Present Assessment: 6%
Possible Range: 0% - 75%

Petrol Tax

Note:Taxing fuel can be a huge source of income for a government, and can also be seen as a 'green' policy by encouraging people to drive less, or to use more fuel efficient cars. Critics suggest that this is just another cynical tax on the motorist, and some complain that the alternative (public transport) is not a viable option for everyone.
Present Assessment: 5%
Possible Range: 0% - 75%

Recreational Drugs Tax

Note: In societies that have legalized drugs such as Cannabis and Psychedelics there is a temptation to treat consumption of these drugs as a source of government revenue, given the claims that their consumption should be politely discouraged due to the negative effects on citizens health, in a similar way to governments taxing alcohol or tobacco.
Present Assessment: 45%
Possible Range: 0% - 75%

Tobacco Tax

Note: Despite the failure of tobacco companies to admit it, there is good reason to believe that smoking has negative effects on health. This is used as a justification for taxing tobacco. Cynics point out that the government benefits hugely from a tax on a product it is supposedly against. Health campaigners encourage the tax as a way to encourage a more healthy population
Present Assessment: 30%
Possible Range: 0% - 75%

Possible Policies

Airline Tax

Note: Airline fuel has generally not been subject to taxation. Supporters of air fuel taxes insist that this results in an unfair subsidy on an environmentally destructive form of transport. The airlines point out that taxing airline fuel will just encourage them to refuel elsewhere thereby diverting funds from our economy.
Possible Range: 0% - 75%

Automation Tax

Note: Technological innovation has led to brilliant inventions. The dark side of industrial automation is that it is leading to job loss. Less jobs mean less income tax. To make up for the loss in state income, the economy ministry has designed an automation tax, to be paid by the most advanced companies.
Possible Range: 0% - 75%

Automobile Tax

Note: Taxing the ownership of all motor vehicles is one way to persuade people to use alternative forms of transport. It can be argued however, that such a system increases the fixed costs of car ownership, encouraging people to use a car more once they have gone to the trouble of taxing it. There is also an argument that this is a tax that unfairly hits the poor and people in rural communities where a car is a necessity.
Possible Range: 0% - 75%

Ban Crypto-Currencies

Note: Everything its supporters love about cryptocurrency, governments hate. A hard-to-tax and track currency that is perfect for cyber-criminals, and that wastes energy on a colossal scale. Its volatility also means it injects instability into the economy, all reasons governments might use to justify a ban.
Possible Options: Illegal - Legal

Carbon Tax

Note: A carbon tax is a tax levied on all emissions of Carbon Dioxide, thought to be the main cause of climate change. The tax is effectively a pollution tax, and a way to make those individuals and industries who contribute to climate change pay for the damage they cause or to reduce emissions. Obviously the tax is popular with environmentalists, and can also lead to a more energy efficient economy.
Possible Range: 0% - 75%

Charity Tax Deduction

Note: A policy designed to encourage the wealthy, or anybody who pays tax, to donate to charity, by deducting some of their charitable donations from their income when calculating various taxes.
Possible Range: 0% - 100%

Churches Tax

Note: As religion has made the transition towards business-like practices, many are calling for these institutions to be taxed like any other organisation that makes a profit. While taxing churches can result in significant revenue, it isn't likely to make the religious very happy. These institutions may also choose to draw funds away from their charitable arms as a result.
Possible Range: 0% - 75%

Crypto-Currency Tax

Note: More and more commerce is handled in crypt-currencies. To cover the cost of tax evasion and tie the new currencies to the fiscal system, rules and taxation will be required. An internet currency tax reduces income of everyone trading in crypto-currencies, including small-businesses and the self-employed.
Possible Range: 0% - 75%

Diverted Profits Tax

Note: A tax levied on estimates regarding large companies profits earned in this country, regardless of their actual reporting. This is used to prevent multinational companies from claiming that all of the profits they earn are somehow only generated in a tax haven (with little or no corporate taxes), by using cunning accounting trickery. The tax is mostly designed as an incentive to push such companies to play by the spirit as well as the letter of the law.
Possible Range: 0% - 75%

Earned Abroad Income Tax

Note: Typically, the income earned by an individual overseas is taxed by their nation of residence rather than our own. However, we can institute a policy in which we tax this income as well, earning revenue from our citizens who do not presently reside in our country. This tax would disproportionately affect capitalists and self-employed people.
Possible Range: 0% - 75%

Enterprise Investment Deduction

Note: The Enterprise Investment Scheme is a system which gives tax breaks to wealthy individuals who invest their money in small startup companies which are based in this country. The scheme encourages investment in companies which should eventually grow and stimulate the economy, whilst at the same time giving a popular tax break to people who invest in them. Obviously indirectly, the scheme is being subsidized by those without savings to invest.
Possible Range: 0% - 100%

Financial Transactions Tax

Note: Investment is all well and good, but frankly a great deal of the financial transactions in our economy are needless speculating and effectively gambling, which rakes in huge profits for hedge funds and financial firms but creates nothing of value. A small tax on each transaction should raise money AND reduce dangerous speculation.
Possible Range: 0% - 75%

Flat Individual Income Tax

Note: A flat-rate income tax is a tax where every citizen pays the same marginal rate of income tax regardless of their total income. As a result, the cleaner in the office pays the same rate as the CEO, though the CEO's total tax bill will be higher. This simpler structure can lead to lower avoidance and evasion. It is not progressive, and can exacerbate income inequality.
Possible Range: 0% - 75%

Frequent Flyer Tax

Note: This Tax is charged only for passengers taking multiple flights per year. The idea behind it is to both reduce the amount of air travel (normally for environmental reasons) while still allowing the average-income citizen access to air travel for the occasional holiday.
Possible Range: 0% - 75%

Gambling Tax

Note: One of the benefits that has been associated with the prospect of legal gambling is tax revenue. This tax would collect from any gambling related economic activity. Opponents believe a gambling tax eliminates the economic advantages of a gaming industry and notes the tax disproportionately affects the poor.
Possible Range: 0% - 75%

Graduate Tax

Note: A graduate tax is a dedicated tax levied purely on people graduating from university, as a way of them contributing to the cost of their university tuition. Supporters say this is fair because not everyone benefits from a university education. Opponents argue that it creates a disincentive to study purely academic subjects and the arts, as well as penalizing ambition.
Possible Range: 0% - 75%

Health Food Subsidies

Note: A tax incentive that makes healthy food, such as fruit and vegetables, cheaper than the higher fat or higher sugar foods. Seen as an incentive to eat well, rather than a punishment for eating badly, and thus less punitive on the poor than a 'fat tax'.
Possible Range: 0% - 50%

Hybrid Car Subsidies

Note: Hybrid cars are less damaging to the environment, because at slower speeds they use electric engines that produce no CO2. They also get higher fuel efficiency, thus reducing demand for oil. The downside is they are very expensive, but tax incentives can encourage more people to buy hybrid models when they get new cars.
Possible Range: 0% - 75%

Inheritance Tax

Note: A tax paid on the wealth of an individual as it is passed on to their descendants. An inheritance tax protects equality, by preventing families amassing wealth and advantage over the generations, so it is popular with socialists and the poor. However, some people are strongly opposed to anything that prevents them handing on their hard-earned wealth, especially their house, to their children.
Possible Range: 0% - 75%

Internet Commerce Tax

Note: As more and more commerce moves from conventional 'bricks and mortar' establishments to the web, governments are tempted to levy taxes on such transactions in order to 'level the playing field'. However, opponents of an internet tax claim that such a move would cripple the hi-tech economy and do enormous harm to the country's competitiveness.
Possible Range: 0% - 75%

Junk Food Tax

Note: A punitive tax rate charged on unhealthy food such as takeaway hamburgers, fizzy drinks and high sugar or fat content pre-processed food. Levied with the aim of improving the health of the nation, but can be unpopular.
Possible Range: 0% - 90%

Mansion Tax

Note: A special high rate of tax charged annually on the ownership of super-expensive homes. This tax is popular with some because it is almost impossible to avoid, as homes cannot be easily hidden. It is perceived as unfair by some elderly people who may have expensive homes but relatively low incomes, and thus have difficulty in paying the annual tax. It is a form of wealth-tax, as opposed to income tax.
Possible Range: 0% - 75%

Marriage Tax Deduction

Note: This is a tax break for married couples, given as an encouragement for people to marry and also to stick together. Church groups see it as essential that the state encourages traditional family values. Some see it as religion meddling in the tax system for no good reason.
Possible Range: 0% - 10%

Mortgage Interest Deduction

Note: This allows people to claim tax relief on the interest payments they have to make when they borrow money to buy a house. This helps homebuyers to afford their mortgage payments, but can be resented by those who are not in a position to buy a house, as it is effectively a tax break for homebuyers.
Possible Range: 0% - 50%

Negative Personal Income Tax

Note: While welfare is traditionally seen as less than desirable to capitalists, there exists an alternative to UBI and the wider welfare system. A negative income tax is a reverse tax. That is, if you make under a certain threshold, rather than paying into the tax system you will receive a payment proportional to that threshold. Effectively the middle class will subsidise the poor.
Possible Range: 1,100 million - 5,250 million

Packaging Tax

Note: Even with recycling, the use of excess packaging can be an environmental disaster. One solution is taxing the production or use of packaging materials. This gives business an incentive to work on more efficient designs for their product packaging.
Possible Range: 0% - 75%

Payroll Tax

Note: A tax levied on employers in proportion to the salaries paid to employees. Easy to collect and hard to avoid, but can act as a disincentive to employment.
Possible Range: 0% - 75%

Plastic Bag Tax

Note: Plastic bags, unlike paper ones are not biodegradable so can last more or less forever, eventually ending up in huge unsightly landfill sites. A tax on bags discourages their use and encourages people to re-use stronger, more environmentally friendly alternatives. Capitalists just see this as the state meddling.
Possible Range: 0% - 100%

Plastics Tax

Note: Plastic waste is a major concern among environmentalists due to the very long time that waste plastic can remain in our ecosystem. A tax on plastic production ensures that environmentally friendly alternatives are chosen instead when suitable.
Possible Range: 0% - 75%

Private Health Tax Deduction

Note: A system of tax-reductions and credits designed to encourage people to spend their money on private healthcare, in order to reduce their tax liability. This boosts healthcare without involving the state running hospitals or employing doctors, but it's effect is limited to those people in society earning enough to be paying tax in the first place.
Possible Range: 0% - 100%

Private School Fee Tax Deduction

Note: A system of tax-reductions and credits designed to encourage people to spend their money on private education in order to reduce their tax liability. This boosts private schooling without involving the State running schools or employing teachers but it's effect is limited to those people in society earning enough to be paying tax in the first place.
Possible Range: 0% - 100%

Public Tax Return Data

Note: Unfortunately some wealthy people in our society try to avoid taxes with illegal tax evasion methods. By making tax returns public, people can now check if someone is using loopholes or abusing the system. This full disclosure will encourage support of the system, as well as reducing tax evasion and forcing everyone to be able to justify their income.
Possible Options: Only Names and Dates - Minimal Details - Full Disclosure

Residential Energy Micro-Generation Grants

Note: These grants are given to citizens to help subsidize the cost of energy micro-generation systems such as solar panels and wind turbines. This is a good way to take advantage of some people's desire to make a personal step towards cleaner and greener energy, and will increase the country's overall energy efficiency.
Possible Range: 13 million - 175 million

Religious National Banknotes

Note: This policy allows for the use of religious phrasing, or iconography on banknotes and coins. A powerful way to remind citizens that religion is a big part of their lives, and is effectively part of the state. This can cause offense among those who demand separation of church and state.
Possible Options: Minimal - Moderate - Egregious

Sex-Work Tax

Note: Opponents to a sex-work tax argue that the government shouldn't be making revenue of an industry of such scandal. Others also point out the worker will be affected at a higher level than the johns with the ability to pay.
Possible Range: 0% - 75%

Shopping Mall Tax

Note: Malls and Shopping Plazas may be convenient for out citizens, but they have many negative effects, they encourage car journeys, rather than supporting local shops, and their dominance is encouraging a society dominated by big business, with no room for the small family owned store. They should be taxed to reflect the harm they do to the fabric of our society.
Possible Range: 0% - 75%

Tithe Tax

Note: Effectively an income tax that hands a percentage of peoples earnings directly to religious institutions for use as they see fit. Hopefully this funnels money into good causes in the same way as charities do, but there is ample room for corruption as unlike the state, religious leaders are not elected by those paying this tax.
Possible Range: 0% - 75%

Tourism Tax

Note: Some within our country have made calls for taxes on tourism, so that those who wish to visit our nation may more directly contribute to supporting national infrastructure they use on their visit. Patriots support such a tax under the belief those who visit should contribute in some way. Capitalists aren't as happy, seeing this as a meaningless tax on a profitable industry.
Possible Range: 0% - 75%

Wealth Tax

Note: There is nothing wrong with wealth as such, but inequality in our society is bad enough that we must be seen to do something to ensure those with the highest levels of income bear their share of the costs of maintaining a healthy society. It is entirely reasonable to set a tax rate that takes away the majority of income above extremely high levels, as this money is so much more appreciated by those on lower incomes.
Possible Range: 0% - 75%