Formulation of Taxation

The state cannot enact taxes except as enumerated in this document.

The tax levied on a particular act or transaction must not vary within the nation.

An extraction tax is levied on all physical raw materials - ores and other minerals, fuels and timber, atmospheric extracts (raw gases such as nitrogen, oxygen, argon, and helium), aquatic extracts (salt, fish, seaweed), livestock and agricultural products, water, etc - each taxed according to mass, at different thresholds (below which no taxation is levied) and rates according to environmental impact of the product and the process of extraction.   The disposal of waste products - the return of any resource, processed or not, to the environment - is taxed according to environmental impact.   Where it is not feasible to account for consumption of a resource, the consuming agent (e.g., livestock) is taxed upon transfer of ownership of the agent.

Yet-untaxed goods leaving the country are taxed at the same rate as though they were extracted and sold domestically.   Taxation on imported goods is described below in § On Subsidies, Aid, and International Tariffs.

The rate of taxation for a given product relative to those for other products can be formulated only on the basis of environmental impact.

The production and disposal, of agricultural goods within a household, including the combustion of timber, wherein no transfer of ownership occurs, are exempt from taxation.

A given item or quantity of goods cannot be taxed more than once for extraction, and if disposed, not more than once for disposal.   this represents a taxation cycle, and re-extraction is taxed at the usual rate.

For each product or activity or portion thereof which has a localized environmental impact, the state must specify in a detailed bulletin the additional tax charge levied on a responsible party that fails to satisfactorily reverse the impact, and must specify precise time periods over which the cleanup must be performed, and precise criteria for determining exactly of what a satisfactory cleanup consists.   A responsible party that completes the cleanup is exempt from the additional tax.

The only type of environmental impact which does not lend itself to the above, by dint of non-localizeability, is pollution of the atmosphere.   Primary among atmospheric polluters is the combustion of fuels.

When the environmental impact of a product or activity can be delineated into localizeable and non-localizeable components, the processes of cleanup for the localizeable portion must be treated as described above - particularly, a tax exemption for satisfactory cleanup performance must be provided, in an amount proportional to that portion of the environmental impact which is localizeable and has been cleaned up.

Through advance agreement, a responsible party can arrange to assume only a portion of the processes of cleanup, and receive a proportional and agreed-to reduction in cleanup tax.

Additional cleanup tax money received as specified above must be maintained in an account separate from all other state money, and must be spent exclusively on cleanup activities.

Royalties paid for intellectual property protected by law are taxed at a strictly uniform rate of up to 20%, as set by law.

For the purposes of this section, trademarks are not intellectual property, and revenue from sales of products marketed under a protected trademark, but not otherwise protected by § Protection for Intellectual Property and Dignity, are not candidates for taxation.

In a given year, total resource tax revenue must equal total intellectual property tax revenue within one percentage point, except that if the maximum legal total resource tax revenue is less than half the maximum legal total tax revenue, the total IP tax revenue can exceed the total resource tax revenue provided the actual total resource tax revenue is equal to the maximum legal total resource tax revenue.

Any intellectual property protected by law, must be licensable and available as an individual item in isolation.   The entire license fee charged for this item is taxable.   If legally protected IP items are incorporated into a larger item, then the taxable portion of the larger item is the total of the license fees for the collection of legally protected IP items incorporated.

Tax is paid to the state of the nation where the sale takes place.

Extraction tax cannot exceed 50% of the wholesale fair market value of the item being taxed.

The sum total of general tax revenue (which excludes cleanup tax money) can never exceed ten percent of the product of an average wage and the total domestic human population.

State agencies must pay taxes on the same schedule as do private individuals and incorporated entities.   To be general, there are no tax exemptions other than those enumerated in this section.

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This is a preliminary draft. Pending changes are in The To-Do List