Omnibus Tax Cut Package

A package of several ammendments to the several tax acts and new tax incentives in order to promote an economic recovery and raise business interest in the country. This package will aim to establish a somewhat georgist model, in order to cover the losses from the reduction of income tax.

Ammendment to The Income Tax - Article 1 only

Original Text

1.1 - Creates a progressive tax on all earnings by citizens of the Republic set at the median annual tax rate of 35%, and sets Income Tax Brackets as follows:

1.2 - The first ₣15,000 of Income shall be tax free

1.2 - ₣15,000 - ₣30,000 shall be taxed at 20%

1.3 - ₣30,000 - ₣60,000 shall be taxed at 37%

1.4 - ₣60,000 - ₣120,000 shall be taxed at 56%

1.5 - ₣120,000 and over shall be taxed at 72%

Ammended Text

1.1 - Creates a progressive tax on all earnings by citizens of the Republic set at the median annual tax rate of 20%, and sets Income Tax Brackets as follows:

1.2 – The first ₣30,000 of Income shall be tax free

1.2 - ₣30,000 - ₣60,000 shall be taxed at 12%

1.3 - ₣60,000 - ₣90,000 shall be taxed at 16%

1.4 - ₣90,000 - ₣160,000 shall be taxed at 20%

1.5 - ₣160,000 - ₣300,000 shall be taxed at 25%

1.6 - ₣300,000 and over shall be taxed at 30%

Ammendment to The Enterprise Tax Act (643)

Original Text

Article 1 - The Corporation Tax

1.1 - Enacts a flat levy upon all gross operating profits of an organisation or commercial enterprise with sales with the Kodiak Republic.

1.2 - The Corporation Tax Rate shall be set at 15% of total reported gross profitable revenue.

1.3 - Small Business Tax Rate: The tax rate for small businesses, as defined in The Kodiak Revenue Directorate Act, shall be set at 10% of their annual taxable income.

1.4 - Employee-Owned Business Tax Rate: The tax rate for employee-owned businesses, as defined in The Kodiak Revenue Directorate Act, shall also be set at 10% of their annual taxable income.

Article 2 - The Capital Gains Tax

2.1 - Enacts a flat levy upon the net physical or financial capital income of an individual, organisation, or enterprise.

2.2 - Permits a one-to-one deduction of capital losses to present capital gains if such capital losses were accrued within the previous three financial years.

2.3 - The Capital Gains Tax Rate shall be set at 25% of total reported capital gains after deductions.

Ammended Text

Article 1 - The Corporation Tax

1.1 - Enacts a flat levy upon all gross operating profits of an organisation or commercial enterprise with sales with the Kodiak Republic.

1.2 - The Corporation Tax Rate shall be set at 10% of total reported gross profitable revenue.

1.3 - Small Business Tax Rate: The tax rate for small businesses, as defined in The Kodiak Revenue Directorate Act, shall be set at 5% of their annual taxable income.

Article 2 - The Capital Gains Tax

2.1 - Enacts a flat levy upon the net physical or financial capital income of an individual, organisation, or enterprise.

2.2 - Permits a one-to-one deduction of capital losses to present capital gains if such capital losses were accrued within the previous three financial years.

2.3 - The Capital Gains Tax Rate shall be set at 10% of total reported capital gains after deductions.

Ammendment to The Commodity and Services Tax Act (643)

Original Text

Article 1 - The Land Value Tax

1.1 - Creates an annual flat tax on the value of privately owned and managed land.

1.2 - Specifically excludes the valuation of any property or improvements to a parcel of land.

1.3 - Sets the annual Land Value Tax Rate to be 40%.

Article 2 - The Under-utilised Residential Property Tax

2.1 - Creates an annual levy on the value of residential property left vacant for more more than six months in a calendar year.

2.2 - Sets the annual Under-utilised Residential Property Tax to 25%.

Ammended Text

Article 1 - The Land Value Tax

1.1 - Creates an annual flat tax on the value of privately owned and managed land.

1.2 - Specifically excludes the valuation of any property or improvements to a parcel of land.

1.3 - Sets the annual Land Value Tax Rate to be 80%.

Article 2 - The Under-utilised Residential Property Tax

2.1 - Creates an annual levy on the value of residential property left vacant for more more than six months in a calendar year.

2.2 - Sets the annual Under-utilised Residential Property Tax to 10%.

Authored by Minister of Commerce & Labour Antonio Recio Rufián.