NationStates Jolt Archive


Poor celebrate! Progressive income tax!

Knootoss
17-01-2004, 16:28
Background music: Washington post march& assorted band music.

KNN news report:

“Your’re watching KNN, stay tuned. As a reminder of today’s top story: Masses are celebrating out on the streets on this years ‘Day of the Republic’, celebrating the downfall of the monarchy and the institution of the first Knootian federation. Marchbands are out on the street playing music all over the DDR.”

*Pictures of celebrating people*

“But today, the poor and huddled masses in Knootoss – the unemployed and those on minimum wages – have more to celebrate because today parliament passed the “Progressive policy act” in a special session. This act, amongst others, changes the tax-system so it will be progressive and taxpayers who earn more have to pay a higher percentage of tax.”

*KNN shows some interesting-looking stats and figures with nice colours and fascinating abbreviations.*

"The average income tax rate is still 22%, but much higher for the wealthy, giving the poorer inhabitants of the Dutch Democratic Republic a big tax break. According to economic analysts in service of the government, this will not hurt the economy because consumer purchasing power will remain the same and the composition of the frightening service-oriented Knootian economy is not expected to shift. The ‘Progressive policy act’ also encompassed some minor measures in the social-economic domain such as more regulation in the funding of pensions for the elderly. These moves were approved internationally, as the UN set the Civil Rights indicator for Knootoss back on it’s old status of ‘World Benchmark’."

*camera switches to an archive view of Parliament, superceded by images of the main party logo's.*

"This act united the liberal SLP and the green KGP in policy once again, completely bypassing the decades-old conservative resistance to progressive income-tax. It is seen as a major victory for the green KGP who had demanded the progressive taxes as a trade-off for the general cut in taxes following the NS recession caused by the UN Labour resolution. Green leader Femke Halsema was positively glowing as she told the international press of the “newfound ideological spirit that seems to be running though the veins of my country.” Halsema placed the act in a series of ‘good news’ happenings, such as the worldwide legalisation of euthanasia, the opening of new markets and the securing of new treaties of friendship, and finally the nearing of the 3000 posts barrier.

Critics argued that the ‘progressive income tax’ was still in the experimental phase, and that it may still vanish with new issues being brought before parliament. Conservatives also blamed this act on the fact that elections nearing are nearing, and see this as an attempt to win votes."
Ariddia
17-01-2004, 16:46
The PDSRA congratulates the Knootian government on its socially progressive policies. May many share your wisdom and concern.
Knootoss
17-01-2004, 17:28
From: ministry of Foreign Affairs
To: Ariddian government

We are grateful for the compliments the PDSRA has given us. We truly do intend to continue on this path.

Our government pursues a polict of closer ties with likeminded nations, and therefore we'd like to offer Ariddia a treaty of friendship. This treaty could regulate free trade between both our nations, and an exchange of embassies to ensure a more stable diplomatic contact.

If your nation has laws that prohibit the sale of drugs we are willing to limit the free trade of narcotic substances and recreational drugs, should your government desire so.

Hans van Mierlo
Foreign Minister of the Dutch Democratic Republic of Knootoss
Soviet Haaregrad
17-01-2004, 17:29
Congrats Knootoss. It is good to see governments trying to protect their poor and downtrodden.
Santa Barbara
17-01-2004, 17:33
Ah, nothing like a good bout of robbing one half of the population so the other half of the population need not work...

-Anonymous PCC suit
Biotopia
17-01-2004, 17:41
Knootoss: [capitalist democracy] There is no official embargo, sanctions against Knootoss; however there is no formal diplomatic or political connection either. Formal diplomatic ties were ended after the general period of international turbulence sparked by Knootoss’s exposure as a spy within the CACE organisation for the SATO/WBO manifestation.
Knootoss
17-01-2004, 18:00
Congrats Knootoss. It is good to see governments trying to protect their poor and downtrodden.

Government response
"Thank you, we hope to deepen ties further so that trade between our nations may be increased further. I've heard RecDrug Inc. may want to establish a presence inside Soviet Haaregrad soon. That is, if you allow production of natural mariuana for exports. Employment figures look very positive."
~some Knootian official

Ah, nothing like a good bout of robbing one half of the population so the other half of the population need not work...

-Anonymous PCC suit
"Since when is solidarity robbery? The rich in the DDR still pay relatively low taxes, after all. With a frightening economy, should we not look after those who are worse-off?"
~Rhetorical question during a lecture at Groningen university.[/quote]


Knootoss: [capitalist democracy] There is no official embargo, sanctions against Knootoss; however there is no formal diplomatic or political connection either. Formal diplomatic ties were ended after the general period of international turbulence sparked by Knootoss’s exposure as a spy within the CACE organisation for the SATO/WBO manifestation.

OOC:
Okay, this is probably your intelligence factbook entry on me. The UN still thinks I'm a civil rights lovefest. :wink: There are indeed no formal relations between Biotopia and the DDR, though the governments officical position is still that we do want them.
EDIT: oh, yes. I wanted to ask what it has to do with this thread?
Effrenata
17-01-2004, 18:32
The Christian Socialism Special Interest Group (Motto/Philosophy: "Share the wealth! It's good for your soul!") extends hearty congratulations to the SLP and KGP in achieving this critical social progress for the good of all Knootoss.

The CS SIG would also like to extend a warm invitation to party leaders of the SLP and KGP to visit Effrenata and attend (as observers) the upcoming Conference of Socialist SIGs, to share their experience as the Conference develops its strategy for the upcoming Meeting Elections.

Yours in Socialist Siblinghood

Corva Rugloon, Figurehead
Christian Socialism SIG
Confederacy of Effrenata
Soviet Haaregrad
17-01-2004, 18:48
Congrats Knootoss. It is good to see governments trying to protect their poor and downtrodden.

Government response
"Thank you, we hope to deepen ties further so that trade between our nations may be increased further. I've heard RecDrug Inc. may want to establish a presence inside Soviet Haaregrad soon. That is, if you allow production of natural mariuana for exports. Employment figures look very positive."
~some Knootian official

They would certainly be welcome to open up here.
Scandavian States
17-01-2004, 18:58
I don't believe in giving anyone tax breaks and the reason is simple math. People or businesses who accumulate more wealth will automatically pay more taxes to the government and poorer people will pay less. Having low flat tax rates helps poor people more than "progressive" policies.
Ariddia
17-01-2004, 19:57
From: ministry of Foreign Affairs
To: Ariddian government

We are grateful for the compliments the PDSRA has given us. We truly do intend to continue on this path.

Our government pursues a polict of closer ties with likeminded nations, and therefore we'd like to offer Ariddia a treaty of friendship. This treaty could regulate free trade between both our nations, and an exchange of embassies to ensure a more stable diplomatic contact.

If your nation has laws that prohibit the sale of drugs we are willing to limit the free trade of narcotic substances and recreational drugs, should your government desire so.

Hans van Mierlo
Foreign Minister of the Dutch Democratic Republic of Knootoss

To: Knootian Ministry of Foreign Affairs
From: Ariddian Secretary to External Affairs

We would be honoured by closer diplomatic and economic ties. Your ambassador will be welcome. The sale of drugs is legal, but subjected to a number of regulations. We have no objection to trading with a nation which has the best interests of its people at heart.
Knootoss
18-01-2004, 01:50
The Christian Socialism Special Interest Group (Motto/Philosophy: "Share the wealth! It's good for your soul!") extends hearty congratulations to the SLP and KGP in achieving this critical social progress for the good of all Knootoss.

The CS SIG would also like to extend a warm invitation to party leaders of the SLP and KGP to visit Effrenata and attend (as observers) the upcoming Conference of Socialist SIGs, to share their experience as the Conference develops its strategy for the upcoming Meeting Elections.

Yours in Socialist Siblinghood

Corva Rugloon, Figurehead
Christian Socialism SIG
Confederacy of Effrenata

To:
Corva Rugloon, Figurehead
Christian Socialism SIG
Confederacy of Effrenata

Both parties thank the Christian Socialism SIG for their kind words. They share the special interest group’s belief that a progressive tax is ultimately in the interest of all.
While neither SLP nor KGP style themselves socialist in the traditional sense they would love to attend your conference. Availability of party leaders will depend on the timing of the event, however delegations will most certainly be sent. Contact addresses have been attached with this message.

Liberally and Ecologically Yours,

Spokesperson for both parties
Dutch Democratic Republic of Knootoss

((OOC: I didn’t feel like sending 2 letters with the same message. Anyways, is this a “background” thingy that I just can assume they attended or an actual RP-ed out event? If it is an actual event: Linky please?))


They would certainly be welcome to open up here.
OOC: I’ll take it to the thread were we opened relations and change that title. :)
Linky: http://www.nationstates.net/forum/viewtopic.php?t=115174
A copy of the post:
From the economic page of the Knootian newspaper Trouw
-------------------

RecDrug Incorporated opens branch in Soviet Haaregrad

HAAREGRAD CITY – RecDrug Incorporated is establishing an international production and distribution branch in Soviet Haaregrad for the production of natural marijuana. The announcement was made only a few months after the Knootian government established a treaty guaranteeing free trade with the Federal Socialist Republic.

The branch will primarily be oriented on the production of natural marijuana for export to other nations abroad, however it is suspected that some of it will also be sold within Soviet Haaregrad itself. Production of other products may be initiated pending initial successes with marijuana and permission from the Haaregradian government. Prospects for distribution within the ‘Socialist Paradise’ region are looking good, according to a RecDrug leaflet. Apart from the new production units, the corporation is also looking into establishing new sales points, or contracting or acquiring existing ones within Soviet Haaregrad, preferring the Dutch ‘coffeeshop’ model.

Employment to several thousand Haaregradians, mainly in the agricultural sector but also for commercial, sales and management functions. The branch will be headed by a Knootian with a Haaregradian directly under him. A corporate spokesman assured the WRO’s for the Knootian production units that there would be no domestic job loss because this was an expansion of business, not a shifting of business.

---


To: Knootian Ministry of Foreign Affairs
From: Ariddian Secretary to External Affairs

We would be honoured by closer diplomatic and economic ties. Your ambassador will be welcome. The sale of drugs is legal, but subjected to a number of regulations. We have no objection to trading with a nation which has the best interests of its people at heart

To: Ariddian Secretary to External Affairs
From: Knootian Ministry of Foreign Affairs

Ambassador Mr. F.G. Randstad will arrive shortly in the PDSR.

After receiving a request from our department, the ministry of Economic Affairs has done some standard research on your nation and it’s economic situation. They were most impressed with your nations civil rights record and how your government has managed to maintain a level social equality free of the usual accompanying government corruption.

However they also did some research into the international value of the ariddian credit, the GDP and other economic variables which rated less on the international economic scale. Notably, the UN description of your economy as, I quote, ‘Imploded’, was worrying

Being a generous people who are fortunate enough to be wealthy, we offer our assistance if this is required. We have our own aid programmes (we strive for the use of about 0,7% of our GDP, which is a UN standard) but we would like to use this opportunity to channel any aid through the ‘Directorate of Compassionate Relief’. This organisation is currently headed by a Knootian and has strong international backing by wealthy nations. The Directorate can set up programmes in your nation where – and if- this is needed to build up your nations’ economic strength.

Apart from compassion, it is our governments belief that economically strong trade-partners with close ties are in the long term more valuable then maintaining the status of partners as developing countries who’s private sector is almost wholly made up of enterprising fourteen-year-old boys selling lemonade on the sidewalk. (Again, I am merely quoting UN reports.) Our suggestion would be projects that promote export diversification and setting up some production. However we can understand that your government has other priorities, and those are of course most important.

Another question that came to our mind was the possibility of trade that might be hampered by regulation. We noted that your nation has a 100% income tax rate. Unfortunately, that is all the ineffectual colleagues ((OOC: there is always some tension between the two )) in Economic Affairs were able to find out. They could not tell us if this rating also applied to sales tax, and how distribution is managed. If we are to trade, our public and private partners need to know how this can be accomplished in a mutually acceptable way. Perhaps you would care to enlighten us on your system?

Yours,

Hans van Mierlo
Minister of Foreign Affairs

((OOC: sorry for the long letter, I tend to ramble on and this whole aid plan made me enthusiastic. I have money to spen.. *eyes some donators who are now looking angry* uhm invest.))
Effrenata
18-01-2004, 05:56
If it is an actual event: Linky please?

We'll be so delighted to have you! Some of our dear young people will meet you at the Ceyce International Skyport. You can find all the information here:

http://www.nationstates.net/forum/viewtopic.php?t=116343
Ariddia
19-01-2004, 12:23
To: Knootian Ministry of Foreign Affairs
From: Ariddian Secretary to External Affairs

We thank the Knootian government for its concern and kind offers. The weakness of our economy, however, is essentially structural. We doubt any form of aid would be able to strengthen it. Our government has set matters such as health care, education, housing and employment as high priorities, and, as one means towards those goals, has long-since nationalised the economy. Should you wish to trade with Ariddia, you must be aware you would be trading with a government-controlled economy, in a nation where there is no private sector.

Our system is, by international standards, a little unusual. All workers are paid by the government, from the taxes which they supply. This circular flow aims at eventually removing the concept of money from Ariddia altogether. As things are, the people have access to most services free of charge, and are realising that money is a superfluous concern. Ariddian citizens travelling abroad are provided with sufficient extra funds.

We understand that other nations function on an utterly different basis, of course, and are more than willing to adapt to the needs of foreign trade partners.
Knootoss
22-01-2004, 17:29
To: Ariddian Secretary to External Affairs
From: Knootian Ministry of Foreign Affairs

Thank you for explaining the nature of our system. It helps us to better specify our proposals when we know your priorities. I understand now that nominal monetary aid and programmes are not an issue. However, we do believe that with proper policies and investments it is possible for any economy to prosper, given time. If government aid is not an option then perhaps we could help by stimulating economic activity? I’m sure there are some opportunities for economic activity in your nation that can help your people to prosper.

With government-to-government trade as a given, the ministry of economic affairs will act as your primary negotiation partner. Please feel free to contact us should anything go awry. We are curious what goods we could offer you, or what your nation has to offer.

Yours in friendship,

Hans van Mierlo
Minister of Foreign Affairs
Syskeyia
22-01-2004, 18:47
-Private IC-
Yay! This means that the poorest of the poor won't have to be forced to pay for the killing of babies and old people anymore!

-Public IC-
The Republic congratulates its former ally on this achievement. The poor should never be neglected.

God bless,

The Republic of Syskeyia
Ariddia
26-01-2004, 12:38
If government aid is not an option then perhaps we could help by stimulating economic activity? I’m sure there are some opportunities for economic activity in your nation that can help your people to prosper.



To: Knootian Ministry of Foreign Affairs
From: Ariddian Secretary to External Affairs

We would indeed be open to trade and mutual stimulation of economic activity, within the framework of our economic legislation. As previously indicated, should you wish to expand your activities to Ariddia, we would adjust our laws to take into account your expectations.
The Most Glorious Hack
26-01-2004, 14:33
Jessica read a transcript of the announcement and sighed. They were going to a progressive tax. This was just silly. Their economy was booming, so why punish the people with the investment income? It didn't make sense. She giggled softly to herself and fiddled the the electronic signs in the caffeterias.

NEWS FLASH: The Dutch Democratic Republic of Knootoss Has Implimented Progressive Tax. Wagers Are Now Being Taken On How Long Before They Go Completely Communist.

She figured the delegates from Menelmacar would give them Hell. Well, more than usual, at least. Nothing like teasing the Knoots to start one's day.
Knootoss
26-01-2004, 15:54
To: Knootian Ministry of Foreign Affairs
From: Ariddian Secretary to External Affairs

We would indeed be open to trade and mutual stimulation of economic activity, within the framework of our economic legislation. As previously indicated, should you wish to expand your activities to Ariddia, we would adjust our laws to take into account your expectations.

OOC: Would it be okay if I put some industry in your nation to stimulate said economic activity? You can pick which ones you's allow to operate.
-plantations for recreational drugs
-something basket weaving-related
-the production of electrical banana peelers
-a Pink Bunny Cola plant
-"Hell" searching for oil in your nation.
~Knoot
Knootoss
26-01-2004, 15:56
Jessica read a transcript of the announcement and sighed. They were going to a progressive tax. This was just silly. Their economy was booming, so why punish the people with the investment income? It didn't make sense. She giggled softly to herself and fiddled the the electronic signs in the caffeterias.

NEWS FLASH: The Dutch Democratic Republic of Knootoss Has Implimented Progressive Tax. Wagers Are Now Being Taken On How Long Before They Go Completely Communist.

She figured the delegates from Menelmacar would give them Hell. Well, more than usual, at least. Nothing like teasing the Knoots to start one's day.

OOC: Meh, I already got hell from Siri... not much else I can say ICly though. Very willing to take on some bets though, just not telling what my bet would be. :mrgreen:
Ariddia
26-01-2004, 16:07
OOC: Would it be okay if I put some industry in your nation to stimulate said economic activity? You can pick which ones you's allow to operate.
-plantations for recreational drugs
-something basket weaving-related
-the production of electrical banana peelers
-a Pink Bunny Cola plant
-"Hell" searching for oil in your nation.
~Knoot

OOC:
No problem. Just a few notes:

- Recreational drugs are subjected to control to ensure quality, and composition must be clearly indicated when sold.

- I'm not sure there's much call for electrical banana peelers, but it would certainly be a novelty, so you can try. ;)

- Pink Bunny Cola would be allowed only if it is strictly vegetarian (ie, no thinning agents made from gelatine as you find in some drinks, etc...)

- What is "Hell"? Oil searching is allowed within specific areas, with strict control to ensure the protection of the environment.

If that is acceptable, your industries can open up in Ariddia as soon as you like. :)
Knootoss
02-02-2004, 17:07
((OOC: sorry, forgot about this one))

These conditions are acceptable, though they limit the extent of our investments.

*establishes businesses*

http://207.44.246.95/93/157/upload/p974.jpg
Ariddia
04-02-2004, 19:45
Congratulations. Yours are the first capitalist-oriented businesses to open in Ariddia since Granny Slag opened factories here. :)
Knootoss
04-02-2004, 20:36
What happened to them?
~Some IC character in some IC situation.
Ariddia
05-02-2004, 11:49
The Granny Slag factories? They're still a huge success.

Random government official
Knootoss
05-02-2004, 14:22
"Right on!"
~another random government official

*continues friendly competition with SLAG*