UTANIA ROVENS BUSINESS POLITICS TECHNOLOGY SPORTS ENTERTAINMENT MAGAZINE |
| Subscription |
|
Subscribing Utania this Week Contributions |
| Zeitgeist News |
|
Zeigeist Corporation Zeitgeist News is a wholly owned subsidiary of the Zeitgeist Corporation. |
| Other links |
|
Jagged Blue |
 |
Wednesday, April 3, 302 AP
Web posted at 1544 UST.
Another of the President's promises at the beginning of the western [?!] calendar year has come to fruition at the beginning of the Utani calendar year: an additional Û8 billion in income tax mostly for wealthier Utanians.
The President ordered taxes to be raised to 30% for all income above Û200,000, and 24% for all income from Û24,000 to that limit. The changes also raise taxes for income between Û13,000 and Û24,000 from 13% to 16%.
Curiously, despite significant inflation in the past year, the President did not move the tax brackets, so workers have found that that while they were once in the 13% tax bracket are now suddenly paying the 24% marginal tax rate.
Yet, despite these hikes, income taxes represent only 11.9% of incomes, and less than 6% of the estimated GDP. Yet, the burden is unequally spread with those 3.75 million workers, of 20.2 million, earning over Û24,000 paying over three-quarters of all income taxes.
Voter Backlash
It is a situation that has the opposition seeing red, not to mention those 3.75 million workers.
"That was the last time the Peoples Party will EVER see my vote", declares Marcus Avante, a bank manager. "This is plain and simple extortion and for, as far as I can see, no real gain."
Payroll officer Gloria Manning, earning Û41,000 at a manufacturing company in
Shecker, is similarly scathing. "The government is just kicking us for the hell
of it. They think we won't complain. They are oh-so-wrong."
A question of economic theory
But, the government is adamant: inflation must be curbed, and the biggest culprit is excess money from share dividends and profits pushing demand for goods up.
The opposition claims these are poor excuses based on even poorer economic theory.
"The very best economists in the TD Corporation have been showing that interest rates are the best means for bringing inflation under control, not government expenditure", says opposition economics spokesman, William Sandhurst MP. "The government is truly stuck in the dark ages of economic policy, and, for shame, it is the people of Utania who will suffer."
|
<tech>
For anyone interested... Interest rates are the modern earth-method for controlling the economy with Reserve Banks setting interest rates on their Bond issues and either soaking money out of the economy with high interest rates, slowing things down, or, with low interest rates, encouraging people with money to invest or spend their money elsewhere. Keynesian policy of the 50s to 70s said that taxes and government spending had the same effect. |
Last year, the Government brought in income tax revenues of Û24,557.5 million, yet this was overshadowed by revenues from dividends of government-owned or partially-owned companies, something government MPs found difficult to accept. Now, income taxes are expected to bring in some Û32,811 million.
Market reaction
With less money in the free (non-government) economy, the Luka stock exchange has taken a hit, dropping 5.9% since last week. The biggest falls were in investment companies, such as Brierson Financials, which plunged from Û4.86 on Thursday to Û4.44 today.
This has prompted doomsayers in the financial markets to predict "too rapid a slowdown" resulting in mass unemployment.
"Pull too much money out of the economy, and you will pay for it in spades",
predicts one analyst.
Final Word
Yet, the final word perhaps belongs to the 16.5 million Utanian workers who earn less than Û24,000.
"They should feel lucky to be earning more than Û24,000 and paying such high taxes", Amea Ko'enya, a steel-maker from Agraam, says. "I work just as hard as them, if not harder, but I earn only Û14,000."
"I would gladly swap with them, if they would like."
Related Stories
Belson announces record profit
| Related Articles |
|
President forewarns tax hikes Detailed analysis of the impact to you and your family |
| Other News |
|
Belson announces record profit Amayu as new Crusaders coach? Utanians celebrate easter |
|
©Zeitgeist News, 302 AP.
<TECH> ©Mike Ham, 2000. All rights reserved. No reproduction without, at least, tacit approval. ;-) |