Kalistani Major History

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Her Imperial Majesty's Prime Minister Calls for tax and spending increases
1% across the board income tax, alteration of brackets to fund infrastructure
Kaliburg, Grand Duchy of Ananto
October 31, 5501


Lady Newburg introduces new tax legislation amid heavy opposition

Her Majesty's Prime Minister introduced two controversial bills in the National Assembly today, and provoked a revolt among liberal elements in the Ruling Party. The Revenue Bill of 5501 called for a 1 percent increase in income taxes across the board, and the lowering of each tax bracket down one thousand dollars to include more tax payers at higher brackets. The bill also doubles the corporate tax from 1 to 2 percent and increases the luxury sales tax from 15 to 20 percent. All told the Revenue Bill would increase annual revenue from about 820 billion to nearly 1.01 Trillion Rubles a year.

The Spending Bill of 5501 triples the Infrastructure budget and nearly doubles the Industry and trade budget. While maintaining a surplus, the Spending Bill devotes significant public money toward the construction of Public works that reflect the priorities of the government. "We need these revenue increases to address our energy shortfalls," said Lady Newburg, while introducing the spending bill. "Support for KPO and the projects they are building costs money and must be funded. The pain will be temporary, especially considering the grand scheme of things. But when these projects are built, Her Majesty's government hereby commits to returning taxing and spending to pre crisis levels."

Liberal leaning deputies viciously protested the bill and demanded an immediate vote of no-confidence in Her Majesty's Prime Minister. "How dare the Government demand more public money be put to fix the problem that the most base and vulgar corruption in that very same government caused in the first place?!" shouted liberal leaning Deputy Marsha Zane, representing Vrassa City. "Haven't we had quite enough of this over reaching, over bearing, criminal minded Government? It is time we had new leadership, which represents the private sector, lowers taxes, and lets Kalsitani Citizens take the lead to innovate new solutions to these problems, rather than this same old nonsense?" Several Deputies loudly disrupted the proceedings, before order was restored in the Assembly.

Following a very contentious debate, four motions of no-confidence failed, and the Prime Minister succeeded in moving the tax and spend bills to a vote. The liberal deputies vowed to fight the passage of these bills to the bitter end, and swore to petition the Empress to remove the Prime Minister. "The people of our districts do not support these radical measures to dramatically increase not only the coffers and receipts of this Government, but the very scope of Government at the same time," said liberal Deputy Matthew Norte, of Springfield. "These actions are reminiscent of the days when Socialists ran our economy into the dirt, crushed any notion of private property, and brutally oppressed the freedoms of people in Kalistan. And we, as Institutionalists must stand up against a return to virtual slavery through massive statism. If these bills go through, I have at least 35 deputies prepared to demand that Her Imperial Majesty remove Lady Newburg from her post once and for all and restore the correct balance between this Government and Kalistani Society!"

Lady Newburg shot back, "I am not convinced that will go as the Deputy thinks. I have known Her Imperial Majesty her entire life, and while she may appear demure and proper on the outside, I can assure the Deputy that she knows her place in Kalistan far better than he knows his. She is in every way the absolute monarch as she was born to be, and will deal with any and all demands made by an opponent of her policies accordingly." Deputy Norte asked the Prime Minister if she was "threatening" him and other liberals, and she responded, "Deputy Norte perceives a threat, when what I merely offer it as a friendly word of advice. I would like to work together with the Deputy and his liberal friends, but things must get done, and in the end of the day, her Majesty's will is what I am moving here, not a bill that reflects some sort of exotic backward, pro-wealth ideology."

Her words further outraged liberal deputies, who accused the Prime Minister of governing by fiat. Charges of "tyranny" and "dictatorship" were hurled at the Prime Minister by more than a dozen Deputies, and were responded to with shouts of "rebellion" and "disloyalty" launched by the Prime Minister's allies in the conservative faction of the Party. The Speaker of the Assembly attempted to restore order, but after failing to prevent several verbal altercations, the Assembly Chamber was cleared for one hour. Capital security kept the sides separated, and deputies broke off into different closed door conference rooms. When the Assembly was reconvened, 16 deputies were absent, and were compelled by the Sergeant at Arms to answer a Quorum vote.

When the controversial session was finally gaveled out for the day, the tax and spend bills were both placed up for vote, as liberals swore continued resistance. As long as the Prime Minister can keep the majority together, she will be able to avoid a snap election, but the difficulty she faces is a clue as to future issues that could come up as the Government attempts to take decisive action to deal with the ongoing energy crisis. Following the contentious session, Lady Newburg spoke to reporters and said "This Government is attempting to help the People of this country. We have blackouts and brownouts every day. People don't know whether their refrigerators will keep their food cold, let alone whether we will have the energy necessary to keep our economy going. And Deputies committed to this deadend ideology of economic liberalism are literally working to undermine the progress we are making toward recovery. I've never experienced this in all my days, but this bill will pass, whatever these liberals say."

The spokesperson for the liberal faction of the Party, Deputy from Platte, Vrassa City, Gina Garrand said "The Prime Minister is out of her mind if she thinks we will not fight this. This will raise an already onerous tax burden on the Kalistani Citizen to new astronomical heights and crush all ability to invest out of the middle class in Kalistan. Doubling the Corporate tax will stifle new innovation and punish the real job creators in this economy. And dumping all this money into public infrastructure and nationalized industry, instead of doing what is right by de-vesting and privatizing, merely replicates the recipe for corruption, waste and abuse."

When asked what tax rate she would be willing to accept from the Government, Deputy Garrand said "How about zero? Taxation, all taxation is theft, and we would do the just thing to simply eliminate all direct taxes to begin with. If we can't wipe out all taxes, however, I would be perfectly fine with increasing the sales tax and possibly instituting a flat tax, which would charge those who use the most services the most, and lets those who want to live free of the oppressive nanny state to do so."

When asked if she would countenance an abolition of the Monarchy and a return to a Republic, the Deputy said, "Well, I think if it was going to happen, now would be a great time to do it. But: I better watch what I say in public. No, I don't support an abolition of the Monarchy per se. I support liberty, not a democracy, and I feel that if we had a republic again, that would just lead to these socialists getting back in charge, and that wouldn't be good for liberty. So, no: let's leave the Empress where she is, and meanwhile, do what we can to... you know... help people have more liberty, and less of Lady Newburg's tyranny."

While the Prime Minister retains the Majority in the Institutionalist Assembly, the twin bills will likely pass in a few short months.