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What kinds of taxes do you use IYTU?

Originally posted by Sir Dameon Toth:
</font><blockquote>quote:</font><hr /> ^Who said anything about NEEDING the money?
You think you get a vote?
Sorry, I guess I was looking at it from a U.S. point of view. </font>[/QUOTE]You get to vote on whether you pay taxes?!? :eek:
 
No, but you can vote on an ammendment to limit taxes via some sort of ballot initiave. You can also vote someone (who exhibits by their voting record that they favor raising taxes) out of office. In the USA, different state constitutions allow different types of ballot initiaves. For example: Here in Knox county in the state of Tennessee, we just approved a "wheel tax" which doubled what we have to pay to renew or get new lisence plates for our cars.

Why? Because our county mayor and county councel announced that if it did not pass, they would raise local property taxes to get the "needed funds" which they could do without having to get it approved. People decided that it was better to pay an extra $30 a year for a car tag than the proposed increase in property taxes. Now in this comming election one canidate is running on the promise to repeal the wheel tax.

Does that help you understand us "Crazy Americans" better?
 
Originally posted by Andy Fralix:
How do you handle taxes IYTU? Or do you ignore them and say that they are covered by port fees?
I presume to use a system largely stolen (and modified somewhat) from Richard Aiken (over on the TML), it goes like this:

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Imperial Taxation

Imperial tax collection is conducted by the Imperial Ministry of the Treasury. There is an official process that assesses the Gross World Product for each Member World. Tax assessors working on each world (technically members of the MoT Subsector Offices) cooperate with the Office of the Margrave or Baron and their official contacts with the world's government(s).

The tax rate is 2% of that GWP each year, and 4% during any time of General War. This amount is called the Member World Contribution (MWC).

Of the MWC, 66% is assigned to the Subsector as the Member World Subsector Contribution (MWSuC), 33% is assigned to the Noble's World Budget (NWB), and 1% is assigned as the World Level Noble Stipend (WLNS) to the noble (Margrave or Baron) of the world.

The sum of all MWSuCs from all Worlds in the Subsector equals the Subsector Total Collection (SuTC). The SuTC is divided into three parts. 66% of the SuTC is assigned to the Sector Contribution (SC), 33% is assigned as the Count's Subsector Budget (CSuB), and 1% is the Subsector Level Noble Stipend (SuLNS).

The sum of all SCs from all Subsectors in the Sector equals the Sector Total Collection (STC). The STC is divided into three parts. 65.5% of the STC is assigned to the Imperial Contribution (IC), 33% is assigned as the Duke’s Sector Budget (DSB), 0.5% is assigned as the Domain Level Noble Stipend (DLNS), and 1% is the Sector Level Noble Stipend (SLNS).

The sum of all ICs from all Sectors in the Imperium equals the Imperial Annual Budget. In practice, though, most spending done with these funds is decided far in advance. Those Imperial funds that are to be spent locally, remain at the Sector level for those purposes decided upon earlier.

One advantage of these Imperial level funds is that wealth generated by internal Sectors that require less military spending for defense, and less infrastructure spending because of existing extensive development, can be applied to poorer frontier Sectors, although this creates its own level of political wrangling at the Imperial Court.

Sectors that are toe to toe with major enemies (like the Spinward Marches, for example), receive far more military spending than the wealth they generate would indicate.

The NWB, CSuB, and the DSB funds are all at the disposal of the noble in charge to fund various governmental actions at their level of Imperial Government District. It is considered a serious abuse of power to spend these funds on personal matters, as the noble’s stipend is intended to cover that need. There is a fine dividing line between personal and governmental spending, though most nobles manage not to cross it.

The higher tax rate for General War may be in effect at the Sector, Domain, or Imperial levels, and may be declared by the Ruling Noble of that level of Imperial Government District.

------------------------------------------------

I use this for general background decisions, to know how wealthy this or that Ruling Noble is, etc.

Other people make other assumptions about taxation and wealth generation.

As many have stated, Traveller is a game of Adventure in the Far Future, not Accounting in the Far Future, and some largely ignore the entire subject, concentrating on adventuring for their PCs. (I'm a milieu designer freak, though, and spend a lot of time on it.)

More information on how I actually calculate these budgets can be found here: How Do *You* Calculate YTU's Budgets?
 
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This raises an interesting paradox for the local vs. imperial govenment as far as taxation is concerned. If a planetary government is required to pay a certain amount of tax into the imperial coffers, democratic planetary governments can really only decide how to raise those revenues, not whether to raise them. Depending on how much tax income passes back and forth between the imperial and local tax offices (a lot if the RW is anything to go by), this could make the more democratic local governments mere rubber-stamping organisations, at least as far as taxes are concerned.

So, in this case, you don't get to vote, even if you do.
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Death Tax.

Everytime the GM kills off a player character, then the surviving PCs must pay a "death tax" on behalf of the dead character.

Most evil.
 
Originally posted by Bromgrev:
If a planetary government is required to pay a certain amount of tax into the imperial coffers, democratic planetary governments can really only decide how to raise those revenues, not whether to raise them.
Thank you for writing to your local Imperial Noble's Office regarding taxation.

Please understand that the taxes paid to the Imperium by Member Worlds are used first to build the navy fleets and marine armies that preserve each of our Member World's independence from interstellar nations that do not respect independence or any traditional way of life known to a world's people.

Second, the taxes are used to pay for the development and improvement of resources found throughout the Imperium to benefit all of its citizens.

Third, the tiny portion of taxes paid to the Ruling Nobility are themselves used in a variety of pursuits, among them one of the highest in the lists of Noblesse Oblige, charity. Payments to charitable concerns are the largest single outlay of Noble Stipend funds, and the widespread benefits to the poor and those stricken by war and natural disaster are of immeasurable value to the well being of the Imperium.

In the overall picture, the taxes paid to the Imperium are an essential and positive part of ongoing life in Charted Space for all the reasons above and many more that this missive is far too short to cover in full detail.

The Imperial Government appreciates that you have taken your time to notify us of this matter, and thanks you for your concern.
 
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Icon 1 posted April 13, 2006 09:23 PMApril 13, 2006 09:23 PM Profile for Sir Dameon Toth Send New Private Message Edit/Delete Post Reply With Quote Would the Imperium need taxes with the Imperial Family holding as much MegaCorp stock that they own? Now the Sector and Subsector locality would need some kind of income. Unless the Dukes and Barons take their lead from the Imperial Family and delve into Sector and Subsector stocks.

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Looking at the stars always makes me dream about the black dots representing towns and villages on a map. Why shouldn't the shining dots of the sky be as accessible as the dots on the map of France?
- Vincent van Gogh
__________________________________________
During the Middle Ages the King of England had enough independant income to maintain most of the work of the Kingdom in peacetime, but not enough to make war. When Longshanks wanted to hammer the Scots, or King Harry wanted to plunder the French they needed to beg parliment for money.
 
I imagine that the Imperium taxes the governments of the member worlds, rather then individuals. The member worlds tax according to local taste.
Then there are what might be called "semi-taxes"-the purchaseing of local priveledges from the Imperium. For instance a noble might be sold lordship over a given underdeveloped world in return for a fee to the Imperium and a promise to develop it.
In low TL worlds, taxes will sometimes have to be paid in kind and resold for the actual cash value. This has precedants on Terra: during the days of the Raj(British rule), officials in India had an annoying time explaining to the government why local peasants couldn't pay cash and had to pay a share of the crops.
 
Actually I was refering to how taxes would affect PCs, not so much as to how they affect worlds in the 3I.
 
IMTU, I conceal most of the non-local taxes by requisite imperial ownership percentages. Any interplanetary business larger than a single ship, or owning dirt, must have a charter from the relevant noble. This charter gives 1% ownership to the granting noble, 1% to the emperor, and 3 more % split out amongst various higher nobles.

So, for an in-system corporation, the local baron gets 1%, the emperor gets 1%, the Domain Archduke 1%, the Sector Duke 1% the Subsector Duke 1%. Go instead to the Subsector Duke, and he gets 1%, the emperor 1%, the Archduke and Duke 1.5% each.

The only real taxes the players have to worry about are that 1/4th of the costs of annual maintenance are the imperial taxes...
 
For general purposes, I use the VAT concept, with all the taxes carried in the cost of the item, including cargoes. I don't feel that it helps to detail outa tax system that works, because I am then worrying more about this than anything else.
If I feel that it shoul cost more, I just use the old stand-by of saying, it costs 10% more than list price.
 
In IMTU...

As far as non-noble players[1] are concerned, the only visible Imperial tax is the 2% of their Licensed Imperial Company (LIC) shares that is owned by the Emperor. [For most players, this just means that the Emperor owns 2% of their starship shares.]

Money, sophonts (including passangers & Travellers), information, and goods in interstellar transit may be taxed by the Imperium, but in practice they aren't. The Imperium prefers to encourage interstellar trade, travel & communication by leaving it tax-free.

Members of Noble families might have to deal more directly with the Ministry of Taxation (MoT). Because all Nobles are Sovereign Individuals[2], they must negotiate seperate tax treaties with the Emperor (usually, not in person ;) ) As these treaties are negotiated on a familial basis, most players don't need to worry about it - Papa (aka, the family Archon) will handle it.

Of course, The Imperial Ministry of Revenue has offices and agents throughout the Imperium, the Imperial Clients, and on hundreds of neighbouring systems as well. Imperial Revenue agents can call on all sorts of support - but it usually isn't needed.

Originally posted by princelian:
NO ONE, from Sector Duke on down, wants to face Imperial auditors. They, like the Navy, don't have to follow any of those annoying rules the citizenry have. [The Navy's example is their ability to ignore the injunction against nuclear weapon releasse...YOU can't use 'em, but THEY can.]
Exactly.

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Planetary taxes on Travellers run the spectrum, from taxes on air used to no taxes at all. As a rule of thumb, xenophilic societies levy few or no taxes on Travellers; xenophobic cultures pound Travellers, good and hard, as soon as they leave the starport.

(Naturally,the lower the starport level, the more likely the world will be xenophobic.)

Note that planetary taxes start at the 100-diameter limit, with the Imperial starport being outside of their jurisdiction. (Ships in transit to & from the Imperial starport may not be taxed by planetary governments, either.) Also, the interstellar reach of planetary governments is quite limited, unless they are seriously wealthy. Wealthy worlds may have tax treaties with friendly neighbouring worlds. "I collect your taxes, and you collect mine!"

Your planetary citizenship can have a real effect on your taxes due, for good and ill - depending on the attitude of the local planetary government to your home planetary government.

A ship's port of registry does NOT have an effect on Imperial taxes and regulations, so long as it's an Imperial port. (Imperial Client ports have unique agreements with the Imperium, and tax rules vary greatly.) Starships registered to non-Imperial ports get hit by taxes, regulations and fees harshly and frequently: this is the major reason why non-Imperial ships are rarely seen in Imperial space, IMTU.

Because Nobles are Sovereign Individuals, they need never pay planetary taxes or fees, and are not subject to any planetary law they have not personally agreed to. Imperial Nobles need carry no planetary ID or papers, and need only identify themselves as Imperial Nobles to enter any planetary facility at any time, for any reason.

(Noble family members lack the Imperial authority the title-bearer has, but do enjoy various privileges, including Imperial immunity from any planetary law. Of course, some planetary leaders don't CARE about Imperial immunity, especially on low-law/no-law level worlds....)

Non-Nobles wealthy personages have a specific advantage regarding Imperial taxes: so long as they keep their wealth on *one* world, they are only subject to indirect Imperial taxes levied on the planet: they need not ever reveal any financial information to the Imperium (excluding Imperial Warrent holders; direct, explicit Imperial Ducal Edits; and the Personal Will of the Emperor.)

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Planetary governments must deal with the Ministry of Taxation, as the Imperium taxes worlds directly. Low-tech worlds (ie: TL 0-9) pay only a symbolic tax. Mid-tech worlds (TL A-D) pay at regular rates, usually 2% in peacetime, 4% in wartime. High-tech worlds (TL E+) pay the same rate, but they also must pay invisible taxes, which amout to an additional 1-2% of the worlds' wealth.

("Invisible taxes" refers to the military draft, endorsing Imperial cultural norms, active involvement in interstellar politics, supporting the subsector and sector bureaucracies, and otherwise Bearing the Burden to Uphold Imperial Civilization. Failure to pay the 'invisible tax' leads to diminished influence and respect, less
Imperial/Noble concern regarding local concerns, and eventually no 'pull' in getting Imperial 'pork', influencing Noble thinking, or shaping Imperial laws.)

System governments are a special case. They *don't* own the space between system worlds, but they *do* have sovereignty over all stellar bodies in their system - including the star(s) - up to the 100 diameter limit. This system sovereignty includes the right to levy in-system transit and landing taxes as they see fit, treating the entire system as if it was a single world (legally). The right to set up a system government is a major gift of the Emperor to loyal and deserving major worlds.

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Again, IMTU:
Currently (1120 Imperial) interstellar corporations pay no Imperial taxes on assets outside of the 100-diameter limit of a world (as well as the 2% Emperor's Share). Interstellar corporations may have to pay planetary taxes, depending on local law.

Before 562 Imperial, large interstellar corporations did have to pay additional taxes: however, they successfully argued before Empress Jaqueline I that they were being unfairly double-taxed, and 'punished for being successful': once by the Imperium, and again by the planetary governments.

******************

Additional notes and meandering thoughts

[1] IMTU, commoners come in two flavours: Imperial Subjects and Imperial Citizens. Neither have a bearing on taxation, but Subjects have no Imperial recognized rights or protection vis-a-vis a planetary government. Subjects rarely or never travel off-world.

Imperial Citizens do have some rights on planetary soil - mainly the right to Due Process, Public Trial, Personal Property, Right of Exit (if not charged with any crime, they may leave the planet as they wish) and Self-defense (NOT a right to bear arms, but the right to defend yourself against "unprovoked & unlawful" attack.) MOST Imperial worlds respect these rights. Violating these rights rarely provokes Imperial Intervention, but will discourage Travellers from visiting your world, and may cause an Amber or Red Zone if attacks persist.

Imperial Citizenship is earned by service to the Imperium, usually in the Scouts, the Armed Services, or to a Noble Household. In addition, Nobles may make grants of Citizenship to worthy individuals: the higher the noble, the more grants they may give. Mid-level Imperial Civil Servants (with at least two terms of service) that are assigned off-world/Travelling duty are granted Imperial Citizenship, as well.

[2] Sovereign Individuals. Taking the lead from the old book "The Sovereign Individual" by James Dale Davidson & William Rees-Mogg, Nobles are considered Sovereign Individuals: that is, they have absolute authority over their person, family, and property. Their residences and business establishments are outside the jurisdiction of any other power - theoretically, even the Emperor. (That's why they have tax treaties with the Emperor.)

Nobles who don't want to pay tribute to the Emperor must renounce their Noble status: they must restrict their financial & political affairs to one world, renounce their title, throne and fief, and lose all Imperial Authority and Noble Privileges. That world's government may now take into account that ex-noble's wealth, when calculating Imperial taxes. Finally, the status of that ex-Noble and his family falls to "Imperial Subject", and must remain there for at least three generations.

I guess that in most Traveller Universes, Nobility is granted to an individual: the noble patent is fundamentally the property of the Emperor, and is revokable by the same. IMTU, Nobility is merely formal recognition of the pre-existing noble status of a given individual or family. This is related to the fact that Noble Status, IMTU, is not a sign of friendship or allegiance to the Emperor, but instead a rough estimate of the interstellar power, wealth, and respect you & your family has in your demesne.

(This very question, "Nobility from the Emperor" or "Nobility from Personal Authority" was the core issue of the Civil War (600's) IMTU. It was resolved in favor of Personal Authority....)
 
In general IMTU the Imperium presents member worlds with a tax bill and leave it up to that world's government to decide how to raise the money. How this affects travellers varies from place to place but there is often a nominal import and/or export tax, sometimes there is a local sales tax, and sometimes something else. It varies with how beuracratic a world is: more paperwork means more taxes. (Port fees usually just cover the cost of providing the facilities.)

For example ...</font>
  • On Yori, in addition to port fees, there is a Cr2 per dton cargo crossing XT line (either way), regardless of cargo type. There is also a local income tax but this does not affect visitors.</font>
  • On Efate, in addition to port fees, there is an import tax of 2% value of goods (assessed on landing). There is also a local income tax but this does not affect visitors.</font>
  • While on Sting there are 3 starports. Each has different port fees, different import/export tax rates, and different local sales tax. Additionally everyone (including visitors) is expected to register and pay income tax on any money they make while there (25% on the first Kr70,000, 40% thereafter).</font>
When playing a merchant based game, local taxes can affect whether a particular run is profitable or not. But where the fun comes in is that even if a cargo is not contraband there is still incentive (tax evasion) for players to be shady (smuggling, bribing local officials, etc).

Regards PLST
 
Given the history behind the "Childrens of the Marches" cruiser (and a look into G:T Nobles)

Imperial taxes are raised along the classical feudal lines:

+ The Imperial representative in system gets money from the local government(s)

+ He takes his cut and hands the rest up to the next higher noble

+ Repeat until you reach the Imperial exchequer

+ The Imperator get's paid twice (He takes his cut as Archduke of Sylea)

This system has the benefit of allowing for corruption and fraud so one can re-use all the old "Robin Hood" storylines.

If you want, you can add some taxes that are drafted on Imperial spaceports or are mandatory on all member worlds (examples of this exists). Some nice ones:

"Schaumwein-Taxes" A tax on champagne and similar products

"Light-taxes" A tax on Glowing rods, Electric candles and whatever produces light

"Salt tax" Add other seasonings as required

"Ship maintenance tax" The yearly maintenance is a MUST DO for Imperial registered ships. To take one required to pay a tax.

All for building up the Fleet, you know
 
IMTU, as Mr. Brinkhues describes, the Imperial tax burden is on the member world's government passed on from the aristocracy; how they raise the money is up to them. Depending on what the world has to offer in resources affects how payment is made. For example, some pay off the Emperor in recruits for the Imperial armed forces or other Imperial organizations. Others generate enough funds thru commerce to meet their quota.

Now, how this affects the players. Depending on world they visit, the PCs IMTU may be called upon to render taxes unless they can prove they have already made remittance. Imperial citizens can fall back on semi-reliable tax records available thru the local Imperial administration (if they've paid them). But it is always the option of the local government to apply new taxes as they see necessary. Really, once the PCs leave the confines of the main spaceport, they can be fleeced of every credit with only a hope the Empire will come to their aid. It really depends on who has more political power, the local magistrate or the PCs (this is were a high SOC can come in very handy).

There is one world IMTU where taxation is extreme and avoiding the tax man is a sport; between landing taxes, life support taxes, import/export taxes, and the bribes needed to ensure they're recorded as received, the PCs better come prepared.

Another world uses an ammunition tax to keep gun wielding to a minimum; charge enough and a full clip will become serious burden of your wallet. But this has opened up a considerable black market outside the spaceport gate in ammo of all types.

What it amounts to is there are plenty of ways for a GM to relieve players of extra, un-earned funds or force them to scheme to keep them.
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I would like to add an addendum to my earlier post.

IMTU: All taxes are rendered in Imperial Credits. Payments in kind are not allowed for a variety of reasons.</font>
  • Accounting in Imperial Credits is far simpler than accounting in goods, and does not involve inventory control requirements, including receiving, warehousing, spoilage (without recourse as their is no original manufacturer), theft, distribution (including interstellar transport), and their associated costs.*</font>
  • Goods have no one universal value, and therefore a kilo of gold in one location is not worth the same as a kilo of gold in another location. This would lead to arguments and complaints about the validity of one noble's "payment" over another noble's.</font>
  • Supplying troops or ships is not allowed, as the Imperium would have to pay to train and equip them, and it does that already for its own forces. (The Imperium would rather just recruit, train, and equip on its own rather than worry about separate force and equipment integration issues.)</font>
This integrates with medieval history, as well, where obligations to superior nobles to supply military forces were replaced by cash payments almost as soon as it was possible. The superior nobles actually wanted cash over troops, as it simplified everything enormously.

Not every world has sufficient business or wealth to generate the necessary funds in Imperial Credits to meet their contribution targets as assessed by the Ministry of the Treasury. It is the responsibility of the world's noble (Marquis/Margrave or Baron) to spend their fortune in building up the world's business and trade so that it can meet these contributions, or to make up the difference personally (this is actually feasible on worlds with smaller populations). If the local noble cannot do so, it is the responsibility of the noble over the subsector to meet the obligations (and though extremely unlikely to reach that point, the noble over the sector is also so obligated).

--------------------------------------

* Technically, the management and transfer of Imperial Credits does incur some costs, but they are tiny by comparison to the costs that would be incurred by inventory management.
 
Appling local taxes against visiting merchants won't work IMHO.

Imperial Starports (at least in G:T) are Imperial Territory similar to a crossbreed between a "Free Haven" and a modern Airport. If you start taxing the traders, they'll stop leaving port and the necessary industrie will gravitate to the port area.

This makes taxing the small tramp frighters rather difficult since unlike the larger lines they don't have/need a fixed office. As it states in "The Gypsy Baron"(Zigeunerbaron) "Funny/Happy is the Gypsies live! Don't have to pay taxes to the emperor". Three options:

+ Traders as "persons without permanent residence" are taxed directly by the Empire. Taxes are raised during the yearly maintenance[1]

Problem: How to handle foreign flagged ships

+ Traders without a permanent residence are taxed as per the laws of their "Point of Registry"[2]

Problem: How to collect the taxes?

+ Trades are to few in between and they are not taxed at all

Anything with more than one ship will have a permanent office somewhere and can be taxed at that location. Scouts and other "Travellers" (non traders) are either taxed directly (i.e the empire pays a scout's pension and deduces taxes) or not at all

The remaining problem: How does one tax an organisation that restricts itself to imperial territory (Quite possible for say a trading line)

I'll look through G:T on that but IIRC this was left out.


[1] In G:T required for each Imperial Registered Ships

[2] IMTU each ship is registered to a planet.
 
What are registration fees, landing fees, trading license fees, tariffs, etc. except forms of taxation that can't be ducked? Wouldn't you expect a starport to tax fuel, life support, or other starship necessities to support the bottom line? Sure it's parasitic and a smart government will know to keep the blood letting at such a level that the profit margin is just high enough to be tempting.

Politically, heavily taxing unaffiliated free traders is without risk; they have no real political clout until they organize. Normally, it isn't until a big shipper gets involved does enough money shift hands to change the local tax system. That leaves a government on a small pop world a long time to soak its life line for a little more than just trade goods.
 
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