Proposed tax sinks Economy Act

SILOFAIS – Despite its determination and the passage of two Acts to create a US Dollar-based economy for Silofais, the National Assembly found its efforts stymied by presidential vetoes.

Hoping to lay the foundation for the micronation’s future economy, the National Assembly passed the Economy Act on August 12. The Act adopted the USD as the micronation’s official currency, largely to ensure that the government dealt in the currency that it ultimately required for paying web hosting costs. The Act also provided for a largely symbolic annual $1 USD stipend to be paid to the holders of certain national positions.

To generate sufficient revenue to meet such commitments, the Act imposed a ‘Capitation Tax,’ which required each citizen over 19 years of age to pay $20 USD each year to the treasury beginning in January. Those who failed to pay the tax, either through evasion or negligence, faced fines ranging from $10 to $200, plus punitive interest or prosecution costs in some instances.

When brought before President Horatio Eden on August 13, the tax proved to be a political non-starter. For Mr Eden, it was an immigration faux pas that would undermine efforts to attract prospective citizens to Silofais by levying a potentially-discouraging tax. Such a concern is well-founded as imposing a tax in fiat currency might be considered a financial burden on some, especially those who are unsure if they wish to become fully-invested in a micronational project.

While expressing his support for the remaining provisions of the Act, including the need to raise USD to pay bills and stipends, Mr Eden ultimately vetoed the entire Act on August 20, directing his Council of State to investigate alternative revenue streams.

The National Assembly failed to overturn the veto on August 27 but was otherwise undeterred as a slightly modified version of the Act with the controversial tax still included was passed. That version met the same fate when laid before Mr Eden. “This Act is substantively the same one,” he said while committing to lay out a plan for funding Silofais’ website on or before his State of the State Address in November.

If such alternate arrangements are not found, Mr Eden said that he would relent, withdraw his veto, and allow the tax to come into effect.

Proposed tax sinks Economy Act