UPA (Utanian Press Agency)
Release: July 3, 301 AP.
Utanian federal government to reap Û43,443 million in income taxes
The Utanian federal government is set to reap over Û43.4 billion in income tax
revenues this year according to the Reserve Bank, making a total of Û82.5 billion
in government revenues.
One month after the inception of the nation, July 1st, 300, President Hope
authorised the state governments to raise federal taxes at the rates used today.
After months of mismanagement, the tax year was re-declared to follow the
calendar year, but only now are Reserve Bank officials able to state with any
certainty the tax revenues the government should be raising.
The federal tax rates are as follows:
The rates are set such that the poorest half of the country, that is those
earning less than Û12,000, will pay a maximum of 8% tax. The President's new
"cooperatives law" will ensure this remains their maximum payment, as numerous
collective farms, registered as being "owned" by the village chief, were paying
corporate tax rates. The total tax revenue represents only 10.3% of all incomes,
but the majority of the revenue -- some Û30 billion or 72% -- comes from those
earning between Û24,000 and Û200,000 per annum, the top 25% of earners.
The nett result will be revenues of Û43,442.99 million, which is substan-
tially more than previously thought -- revenue last year was only Û16 billion
for the six months to the year's end. Expenditure plans have not been made,
except for the commitment of an estimated Û25 billion in defence spending. The
President has been spending little to date given the poor revenues last year,
but can be expected to spend a little more freely after receiving news of a
Û10 billion windfall.
However, this amount is only for income taxes. The government is expected to
reap about one-quarter of all corporate profits, an estimated Û30 billion, as
it inherited the Guwimithian holdings in Utanian companies. Plus, its 10%
company profits tax will yield another Û9 billion, bringing total revenues to
about Û82.5 billion. Add to this state government revenues of about Û50 billion,
and government expenditure -- excluding companies owned by the government -- is
only about 22.5% of the country's economy -- significantly lower than the 25 to
40% of most first world countries in Vexillium*.
<tech> * Alright then, of earth </tech>
State governments are adding their own state taxes to this amount, though
income tax is only a small portion of state taxes, the majority being
consumption taxes. Lasanne state taxes at a rate of only 8% flat for all levels
of income, but has a flat 10% goods and services tax as well. Consequently, the
state raised revenues of Û26,910 million last year. Nystonia state taxes
progressively from 6% to 14%, while Utani B'yan has a progressive tax of up to
Complaint is therefore heard in Utani B'yan state that taxes are too high -- an
executive earning over Û200,000 and living in that state can pay a marginal tax
rate of up to 41% of his/her income. A Nystonia state executive fares little
better -- up to 39%. Ironically, executives in Lasanne state may only pay
maximum 33% tax, they pay an additional 6.7% of their income in the GST,
assuming they spend it all.
Fortunately, few such people exist as only an estimated 42,100 people earn over
©UPA, 301 AP.
©Mike Ham, 2001. All rights reserved. No reproduction without, at least, tacit approval. ;-)