The Individual Income Tax Act (630)
From The Kodiak Republic Wiki
An act to fund government expenditure from individual revenues.
Passed on 26 Sep 2021 with 5 Aye, 0 Nay, 0 Abstain,
AMENDED by the Amendment: The Individual Income Tax Act (630)
AMENDED by The Pay Your Own Way Tax Reform, 667
Article 1 - The Income Tax
- 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%
Article 2 - The Small Enterprise Creation Investment Credit
- 2.1 - Permits a 0.50 florin-per-florin deduction from earned income for investments into any Kodiaker-majority-owned Small or Medium Enterprise (SME) established within the last 10 years.
- 2.2 - The deduction may be applied to personal income or personal capital gains or both in ratio at the discretion of the taxpayer.
- 2.3 - Establishes a maximum deduction of 150,000 florins per year.
- 2.4 - Defines Small or Medium Enterprise as defined by the Hiring Subsidies and SME Loans Act 651.
Article 3 - The Health Insurance Credit
- 3.1 - Permits a 0.125 florin-per-florin deduction from earned income for payments or premiums toward any insurance plan contracted to at least 11 months or longer.
- 3.2 - The deduction may be applied to personal income, or personal capital gains, or both in ratio - at the discretion of the taxpayer.
- 3.3 - Establishes a maximum deduction of 25,000 florins per year.
Article 4 - The Education Fee Credit
- 4.1 - Permits a 0.25 florin-per-florin deduction from earned income for tuition or fees used for any Kodiaker between the ages 4 and 18 to attend a non-state educational institution.
- 4.2 - The deduction may be applied to personal income, or personal capital gains, or both in ratio - at the discretion of the taxpayer.
- 4.3 - Establishes a maximum deduction of 25,000 florins per year.
