Private Sector Growth Incentives Act 2025
Notice
This act is vetoed and not in force.
Preamble:
Whereas the recently passed Compound Tax Plan Act will implement income taxes in SimDemocracy.
Whereas this Act may take a toll on private employment.
Whereas there is a great lack of private businesses and employment that is negatively affecting the economy.
HEREBY PRESENTS
Private Sector Growth Incentives Act 2025
Article 1 - Tax Breaks §1. A business will be eligible for Tax Breaks, as defined by this Article, if it fulfills all of the following conditions:
- §1.1. The business has been validly formed and registered, according to the Commerce Actualizations Act and its corresponding amendments.
- §1.2. The business has existed for 90 (ninety) days or less.
- §1.3. The business must have an employee that has been employed at the business for 45 (forty-five) days or less.
- §1.3.1. This employee must not have been dismissed and/or have resigned from the business for an equal period of time before their hiring.
§2. If a business is eligible for Tax Breaks, as defined by §1 of this Article, the business or an owner of the business may contact the Director of the Central Revenue Bureau with the necessary evidence of such eligibility to receive the following benefits (also referred to as “tax breaks” for the purposes of this Article):
- §2.1. The business will only have to withhold a percentage - as will be determined by this section - of the income taxes mandated by the Compound Tax Plan Act 2025 for all employees that fall under the provisions §1.3. and §1.3.1. of the present Article. The percentages to be withheld are the following:
- §2.1.1. 50% (fifty percent) if the business has existed for 30 (thirty) days or less.
- §2.1.2. 75% (seventy-five percent) if the business has existed for between 31 (thirty-one) and 60 (sixty) days.
- §2.1.3. 90% (ninety percent) if the business has existed for between 61 (sixty-one) and 90 (ninety) days.
- §2.2. The business shall retain a percentage of all withheld income that falls under §2.1. of the present Article - as this section will specify, while the rest shall be paid to the Government Reserve account. The percentages to be retained are the following:
- §2.2.1. 50% (fifty percent) if the business has existed for 30 (thirty) days or less.
- §2.2.2. 25% (twenty-five percent) if the business has existed for between 31 (thirty-one) and 60 (sixty) days.
- §2.2.3. 10% (ten percent) if the business has existed for between 61 (sixty-one) and 90 (ninety) days.
- §2.3.These benefits shall immediately expire if the business stops fulfilling the conditions outlined on §1.
§3. Anti-abuse measures:
- §3.1. Businesses found by the Director of the Central Revenue Bureau and/or the Secretary of the Treasury to be repeatedly hiring and dismissing employees solely to claim tax breaks shall be disqualified from all incentives set out by this Act indefinitely.
- §3.1.1. These disqualifications may be appealed following standard legal procedures.
- §3.2. The Director of the Central Revenue Bureau may deny subsidy applications submitted under §2 based on the provisions of §1, with appeals following standard legal procedures.
Article 2 - Employment Subsidies §1. A business will be eligible for Employment Subsidies, as defined by this Article, if it fulfills all of the following conditions:
- §1.1. The business has been validly formed and registered according to the Commerce Actualizations Act and its amendments.
- §1.2. The business has existed for 90 (ninety) days or less at the time of application.
- §1.3. The business has at least one employee who has been employed for 21 (twenty-one) days or less at the time of application.
- §1.3.1. This/these employee(s) must not have been dismissed or resigned from the business within an equal period of time before their hiring.
§2. If a business meets the conditions in §1, the business or its owner may submit a request to the Secretary of the Treasury with the necessary evidence of eligibility to receive the following benefits:
- §2.1. The business will receive a one-time employment subsidy equal to 40% (forty percent) of the first three (weekly) salaries of any and all employees that fall under §1.3, up to a maximum of 300 (three hundred) Tau in total for each.
- §2.2. This subsidy shall be paid after the employee on §2.1 has worked for the business for 21 (twenty-one) days, provided that the employee in question is still employed at that time.
- §2.3. These benefits will immediately expire if the business ever stops fulfilling the condition set out by §1.1.
- §2.3.1. Conditions for eligibility set out by §1.2 and §1.3 are excluded from this provision, so long as the business fulfilled them at the time of application.
§3. Anti-abuse measures:
- §3.1. Businesses found by the Secretary of the Treasury to be repeatedly hiring and dismissing employees solely to claim subsidies shall be disqualified from the incentives set out by this Act indefinitely.
- §3.1.1. These disqualifications may be appealed following standard legal procedures.
- §3.2. The Secretary of the Treasury may deny subsidy applications submitted under §2 based on the provisions of §1, with appeals following standard legal procedures.
Article 3 - Implementation
§1. This Act will enter into force immediately upon the 137th Senate becoming in session. §2. This Act shall immediately be repealed 90 (ninety) days after the 137th Senate becoming in session.
- §2.1. The President is granted the right to modify the period of time set out by this section through Executive Orders.
