Frozen snapshot of the SimDemocracy Archives, captured 2026-05-05. Read-only mirror; no edit, no live updates. mypenjustbroke.com

Transaction Tax Act of 2025

From SimDemocracy Archives
Jump to navigation Jump to search


This matter has been repealed, voided, or is otherwise out of date

Repealed by Bank Balance Tax Act

Transaction Tax Act of 2025

Authored by Matt Cheney

Preamble

Whereas an automatic tax system is needed for ease and to relieve some bureaucratic burden;

Whereas we have seen through trial that a new tax is needed;

Whereas a transaction tax should assist the economy more than an income tax;

Article 1: Definitions

§1. “Transaction” shall refer to any transfer of tau between two parties, including but not limited to peer-to-peer payments and marketplace sales.

§2. “Individual” shall refer to a person conducting transactions for personal purposes.

§3. “Business” shall refer to any registered legal entity under SimDemocracy law including corporations and nonprofits.

§4. “Service-based business” shall refer to any business whose primary revenue stream is from the provision of services rather than goods.

Article 2: Tax Rates

§1. The tax rate for transactions performed by individuals shall be point fourty (.40%) percent.

§2. The tax rate for transactions performed by businesses shall be point twenty-five (.25%) percent.

§3. Newly formed businesses, which are businesses in their first two (2) weeks after registration, shall pay a reduced rate of zero percent (0).

§4. For any transaction higher than two hundred fifty (250) tau the tax rate shall increase by point ten (.10%) percent.

§5. All tax revenue collected shall be automatically sent to the Government Reserve tau account.

§5.1. If the calculated transaction tax results in a non-whole number of cents, the final tax shall be rounded down to the nearest whole number of cents.

Article 3: Service-Based Business Tax Credit

§1. Registered service-based businesses may claim a credit up to fifty (50) percent of the total transaction tax, up to three hundred (300) tau per month, for the first three (3) months of operation.

§1.1. Any unused tax credit may be used for up to two (2) subsequent months.

§2. Credits are applied manually, businesses must show the CRB Director their tax totals, and the tax credit will be paid upon approval by the Director.

Article 4: Exemptions and Thresholds

§1. Any transaction of ten (10) tau or less by any entity is exempt.

§2. Transfers between government departments and to or from the reserve are exempt.

§3. Gifts that can be authorized by both parties as gifts to registered charities or nonprofits shall be exempt.

Article 5: Revenue Allocation and Growth Incentives

§1. One hundred percent (100%) of all revenue will be collected into the Government Reserve tau account.

§2. Every month, fifteen percent (15%) shall be sent to a Small Business Growth Fund set up as a savings account in the SDSB.

§3. This Fund can be used to assist small businesses as needed and will be run by the SDSB Board of Governors.

Article 6: Implementation

§1. This Act will come into effect seven (7) days after it passes the Senate.

§2. The Secretary of Technology may request more time if needed, based on any technical issues or problems that may occur while setting up the auto-tax.

§3. The passage of this act constitutes the repeal of the Compound Tax Plan Act of 2025\.