Pantocratorian taxation system
The Pantocratorian taxation system is a remarkably complex affair, created by many autonomous layers of bureaucracy. It successfully extracts an incredible amount of taxation from Pantocratorian citizens.
Pantocratoria has a progressive income tax automatically garnished from most employee's pay cheques by their employer's payroll department. Citizens must fill in a tax return annually to reconcile any differences between the amount of tax which has been paid and the amount of tax they should have paid. This usually results in a modest tax return. (Filing a tax return is taxable)
Tax rate by salary bracket:
- ∂0 to ∂8,000 (10% income tax)
- ∂8,001 to ∂12,250 (18% income tax)
- ∂12,251 to ∂16,000 (27% income tax)
- ∂16,001 to ∂18,000 (33% income tax)
- ∂18,001 to ∂20,000 (40% income tax)
- ∂20,001 to ∂22,250 (45% income tax)
- ∂22,251 to ∂26,000 (50% income tax)
- ∂26,001 to ∂30,000 (58% income tax)
- ∂30,001 to ∂50,000 (62% income tax)
- ∂50,001 and above (70% income tax)
There are multiple sales taxes and taxes on services. In fact, the Imperial Treasury estimates that there are over 2,000 separate taxes on consumption technically levied by law - naturally these are not all actually collected, since the Government is only dimly aware of their existence. Consumption taxes are collected through the business selling the good or service being taxed. In addition to a flat 15% consumption tax on all end-consumer purchases, there are a myriad of taxes on individual items - for instance, a 40% tax on silver goods, a ∂0.5 tax on horse shoes, a 30% tax on petroleum, a ∂1 tax on peacocks, a 80% tax on tea, and so on.
Wholesalers do not escape the attentions of the various financial officials either. A wholesale sales tax of up to 20% applies on many non-foodstuff goods.
Tariffs and Import Taxes
There are innumerable tariffs and import taxes, including an astonishing 1000% tariff on contraception, a 400% tariff on live bird imports (justified by politicians on the grounds that live bird imports endanger Pantocratoria's native peacock population), a 20% tariff on beef imports, and a ∂5 import tax per litre of Pink Bunny Cola.
Until the Drapeur Government passed legislation disestablishing the Church, there was a 10% tithe on all income collected in the name of the Catholic Church by the Pantocratorian Imperial Government, which was then theoretically handed over to the Church. The Church in fact received even more than this 10% tithe as a result of decades of Government social expenditure being primarily enacted through Church agencies. The Church still receives significant funding from the Government for its participation in various social programs and to assist its charity work, although it no longer receives that funding on a preferential basis.
Death and Inheritance Tax
Until recently there was an 80% of the estate suicide tax in Pantocratoria - this was repealed by the Drapeur Government. There is however, still a general estate tax, where 30% of the net worth of any estate valued at over ∂156,000 is payable to the Crown. Although the value of any properties (including residential housing) is included in the calculation of the net worth of the estate, the Crown cannot compel the sale of every residential property in the estate in order to collect the estate tax, and is instead only able to collect the total value of the estate up to but not including the most valuable residential property, even if this total value is less than 30% of the net worth of the estate. Noble fiefs and grants from the Crown are immune from the general estate tax.
Crown Maintenance Tax
2% of all income is payable as Crown Maintenance Tax. This nominally supports the Emperor, the Imperial Family and the Imperial Court, and all 143 of the Emperor's official residences. In fact, the Emperor receives 33% of all taxation collected by the Imperial Government personally, and so his personal expenditure may exceed the income from the Crown Maintenance Tax.