Pay Your Own Way Tax Reform Act 667

A resolution to reallocate tax burden and improve nation-wide economic efficiencies.
PASSED on 13 May 2024 with 12 Aye, 9 Nay, and 3 Abstain.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE MOST SERENE REPUBLIC OF KODIAK:

PERMITTING the opportunity for those already well off to pay for public services;

SUPPORTING policies which encourage economic growth;

INVIGORATING individual freedom to choose your own services;

NOTING the cost savings for the less well off by maintaining funding while decreasing use;

HEREBY SHALL;

AMEND the INDIVIDUAL INCOME TAX ACT (630) as below.

Amendment to The Individual Income Tax Act (630)

Introduces the Small-Enterprise Creation Investment Credit.

Introduces the Health Insurance Credit.

Introduces the Education Fee Credit.

Original Text

N/A

Amended Text

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.

Proposed and authored by Minister R. Henry Welch, MGA of the National Unity Party.