This article belongs to the lore of Sparkalia.

Tax rates in Sparkalia

Revision as of 08:51, 19 June 2023 by Dokzentir (talk | contribs) (added Indefinite Color)
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This is a list of tax rates on Sparkalia. Comparing tax rates among countries is difficult and somewhat subjective due to the wide variety of economic systems on Sparkalia. Tax laws in many countries are extremely complex, and tax burden may fall differently on various groups in each country or sub-national unit.

  National progressive or regressive tax   National flat tax   No national tax, local taxes may exist


Country/Region Capital gains Carbon Church Corporate Fin. transaction Gift Income Inheritance Land value Payroll Poll Property Retention Transfer VAT Wealth Tariff
 Lurynia 10% 10% 10% 10% N/A 5% 10% 10% N/A N/A N/A 2.5% N/A N/A N/A N/A N/A
Lurynian Tax Policy has various progressive taxes across the board, though it does not pursue a wealth tax. In addition to these taxes, sub-national jurisdictions are able to collect taxes to a smaller extent to fund the difference between their annual revenue grant from the Magocracy and their budget.
 Ostrov 8% N/A N/A N/A N/A N/A 8% N/A N/A N/A N/A N/A Income tax withheld by employer N/A N/A N/A N/A
Ostrovian politics is highly centralised and divided between two parties. The Farmers' and Workers' Union, a conservative party which dominates among residents of rural areas and farmers, has historically supported a sales tax, believing that it would be more economically efficient. The Justice Party, a social-democratic party which enjoys support in towns, supports a progressive income tax, on the basis that it would encourage higher earners to "pay their fair share" to support healthcare, policing and education, the three key public services. And neither party supports corporation tax, believing it to be unnecessary when many Ostrovian businesspeople are sole traders (such as farmers).

The current 8% income tax - levied on anyone who earns more than LS5,000 - is, in large part, a compromise. Although the early Ostrovian state was highly dependent on tariffs - primarily from Lurynian imports - to fund government services, some members of the Union were concerned that it was pricing most Ostrovians out of services. The 15th century AR, a century of electoral success for the Union, was one of a shifting tax burden: in 1428, a 2% income tax was introduced while tariffs on many goods were cut; the rate was flat because they had to rely on support from Justice backbenchers after some of their own announced they would not support an income tax under any circumstances.

The income tax rate was increased to 3% in 1452, 3.5% in 1470 (and then 4% in 1475), and 5% in 1507 - although it was reduced to 4% when the Justice Party was in government between 1521 and 1533. In 1560, when Ostrov unilaterally abolished all tariffs, it increased the tax rate to 8% to compensate. The income tax is deducted by employers when their employees are paid, although self-employed individuals - most importantly farmers - must file their own tax form.

The Capital Gains Tax was introduced by the Justice government in 1486 and indexed to the income tax level. CGT must be declared on a separate tax form. All tax forms are available on request from the Department of Revenue - and those who do not readily declare tax when they are required to fill out a tax form may be subject to punishment.

Template:Country data Santi Rasta 10% 0.01% 1.5% 15% 0.02% 30% 5% N/A 0.2% N/A N/A 5% N/A N/A 5% N/A N/A
N/A
 Voidkree 5% 25% N/A 10% N/A 5% 5% N/A 20% N/A N/A N/A 5% 15% 15% N/A 20%
N/A
 Indefinite Color N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
The Color Court provides legal rights, protection, and services at the cost of a flat tax sum. Those that pay no taxes have no rights and can legally be murdered or robbed. Those that pay the minimum poll tax yearly are part of the Civility and have their rights protected by the law. One can pay the Color Court to pick from a variety of more exclusive rights and be part of the nobility.