Taxation in Great Nortend

In Great Nortend, there are variety of taxes levied on persons as well as corporations. The most common taxes are income tax, corporation tax, parochial rates, building tax and church tax. The tax burden in Great Nortend is comparatively low, at only 18·75 per cent of the GDP.

Crown taxes

Crown taxes are taxes that are collected by the Exchequer and go to the Treasury.

Income tax

Personal income tax is levied very simply as a marginal tax. For taxable income from up to £500, there is an income tax of a florin in a pound (10 per cent). From £500 to £1000, there is a rate of a double florin in a pound (20 per cent). From £1000 to £1500 there is a rate of three florins in a pound (30 per cent). From £1500 or greater, there is a rate of two double florins in a pound (40 per cent).

Stamp duty

Stamp duty is a tax levied on legal documents, such as contracts, deeds, wills and notes. The rate varies, from a penny per personal cheque to a duty of a shilling in a pound for real estate transfers. Whilst the revenue collected on personal cheques is low (only around £25,000 in total over six million cheques), the total revenues for stamp duty is over £100,000 annually.

Building tax

Building tax is a tax on residential premises collected twice a year. It consists of a flat rate of six shillings per house. An additional sixpence is payable for each window in a house with between 10 and 15, and ninepence for every window in a house with 16 to 25 and a shilling for every window in a house with 26 or above. Chimney tax is also payable for houses with two chimneys (or fireplaces) or more, at a levy of sixpence each.

Consumption taxes

Consumption taxes are levied on a large range of goods. The excises on salt, alcohol, petrol and cotton are the major consumption taxes. Salt is taxed at 2d per ounce. With salt consumption being one of the highest in the world per capita, at a total of 120,000 tons of salt yearly, the excise equates to total government revenues from salt alone at £26,880,000. The alcohol excise is a rate of 18d per quart of pure alcohol. The petrol excise is twopenny per gallon of unleaded petrol. The cotton excise is £1·2·0 per hundredweight of cotton fabric.

Parochial rates

Parochial rates, or tithes, are taxes collected for the use of the parish. They are collected a rate of shilling eightpence in a pound out of tithable income which excludes investment dividends and the like. Traditionally tithes were split into 'great tithes', being corn, young of livestock, wood, hay, and wool, and 'lesser tithes' being personal income (exclusing investments, gifts, inheritances and the like), eggs, fruit, wax, linen &c. This continues to this day, however payment in the form of goods is nearly always replaced with payment in money. The remaining fourpence out of the traditional tenth of the income is the church tax, which is collected by H. M. Exchequer on behalf of the church. There is an upper limit of 15/6 for the church tax. If this limit is reached, any excess is allocated to parochial rates. Tithes are levied on income after income tax and building tax.

Exemption

Paupers who have sworn the pauper's oath are exempt from most taxes and rates, excluding consumption taxes.