Corporate Tax Act

[HugeBob]

A
BILL
To

Reduce Tax Evasion​

The people of Democracy Craft, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the “Corporate Tax Act”.
(2) This Act shall be enacted immediately upon its signage.

2 - Reasons
(1) Currently many players stash their wealth away in corporate balances to avoid taxation indefinitely.

3 - Terms
(1) Any funds withdrawn from a corporate balance through use of the command “/cm withdraw” shall be subject to a one time tax rate no less than 1% and no more than 10%, at the discretion of the DEC.
(2) The DEC shall have the power to set the rate at which these funds are taxed within the bounds prescribed in law. The DEC may not alter the rate on a case-by-case basis and must equally apply the rate to all companies.

 

[Krix]

First House Vote
Rep Aye:
Krix, Hugebob234565 and Neemfy
Rep Nay:
partypig678
Abstentions:
1950Minecrafter, Milkcrack and Ansgard_Ist

 

[218218Consumer]

The Senate recognizes the importance of preventing tax evasion and closing corporate loopholes. The storage of money in tax exempt companies by CEOs is a major issue. That being said, we felt it was necessary to clarify why we nayed this bill, which was for the following reasons:

• Chest shops would provide an easy avenue of tax evasion around the withdrawal tax, something that corporations could easily figure out. Instead of driving companies toward this loophole, we want to clarify this tactic as illegal in concurrence with the establishment of a withdrawal tax, something that would be impossible to do this term considering how little time is left.
• A developing industry in DC, banking, would be significantly harmed by an unconditional withdrawal tax: simple deposits and withdrawals would be taxed in the same way as withdrawals made for personal gain. This would inhibit the growth of finance on DC.
• Staff have alluded to revamping the tax system through a custom plug-in, and with this in mind, we nay this bill knowing that the problems of the current tax system are already being addressed in some form.

Tax evasion is a major issue on this server, but only a clear, targeted solution can prevent loopholes without damaging to the growth of industries. We've nayed this bill for now, and we hope that corporate taxes can be explored in a way that more thoroughly addresses the issues listed above for the next Congressional term.