[Topic Debate #3] Planetary Autonomy

[u/Aussie-Parliament-RP]

(Meta Commentary: Topic Debates serve as introductions to the simulation and are intended to provoke discussion, thought and debate on issues of great importance to the Galactic Republic. They are relatively relaxed spaces where the ordinary formalities of the Senate are temporarily lifted. You are encouraged to debate and engage with your fellow players, but keep discussion on topic and respectful, to avoid penalties.)

Possible questions for discussion:
Should planets/sectors that are part of the Republic be able to have their own militaries?
Should the laws of the Galactic Republic or of each individual planet/sector take precedence?
Should planets/sector be able to levy their own taxes?
Should their be barriers to free trade between planets/sectors, such as tariffs?

[u/KunaiOats]

I agree planets should be allowed to maintain their own defenses forces, especially since some of us in the outer and mid rim are not very found of the thought of having GAR boots on the ground enforcing the will of the core worlds.

[u/democracy_lover66]

I propose that not only should systems be allowed to organize forces for their own protection, they should be given the power to join, or leave , the Republic at their will...

No legal binds should be established forcing members to obey a Republic that does not work for them. If the Republic wishes to maintain its presence in these worlds, let them convince them why they should stay with words and actions, not laws and enforcement.

[u/KunaiOats → u/democracy_lover66]

I agree, the Outer Rim will manage its own affairs since time and time again the Bureaucracy within senate has prevented any real progress, I’ve taken it upon myself to travel around the outer rim interviewing and collecting petitions in support for sovereignty amongst systems and planets who wish to have greater day in domestic in regional affairs rather than be told what do by the central government and authorities on Coruscant.

[u/JEF_300]

"Many of my colleagues will discuss the importance of local militaries for defense, and why they are superior to a galactic military. What I would like to discuss is the important role that the local military often plays in local culture.

"In the Republic, the military has always been seen as a necessity, rather than an end of it's own. This is not the case on Corbos, or any of the other Kaasite worlds. Our military traditions run deep, and there is perhaps no more prestigious a role than that of the career officer. We pride ourselves on our efficient and professional officer corps. It is a deep and intrinsic part of our culture.

"Many of you may know that I myself was a Commodore in the Corbos Security Service before joining this esteemed body. It was at the Academy that I learned public speaking, debate, and sound judgement. Local militaries are a vital party of creating an educated, and civically engaged public, and are thus essential to the democratic process."

- Excerpt from Senator Jaesa Vosam's speech on local militaries.

[u/Knightofaus]

Planets that are part of the Republic should be able to raise their own militaries and be able to levy the taxes to fund them.

Trade Federation Reports have shown a dramatic increase in piracy in the Outer-Rim both in scale and technological advancement. This is causing many planets to become isolated and fall under the influence of criminals and warlords.

These planets need the Republics support and assistance to level the playing field and bring Republic law to these territories. Funding for upgrading military capacities should be provided and planets should be organized to best work together against common threats.

This support should only be given to those planets who give preferance to the Republic rule of law and embrace the ideals of this republic. The Trade Federation has opperated in the Outer-Rim and knows the planets out there well. We have diligently categorized planets that align with the values of both the Republic and our Federation and ask for the Republic to work with out expertise in this area.

[u/Mac1692]

In relation to the topic of planetary autonomy, there is much to say, as it is clearly a topic of great debate in our galaxy. I have already spoken at length regarding local militaries, so as to avoid repeating myself I will speak solely to taxation and legal jurisdiction here. It is my proposal that the Republic’s laws should focus primarily on interplanetary/intersystem matters, leaving the laws of local planets/systems to contend with conduct while on planet or in system. Should a notable exception to this be raised, such as aa vote to prohibit the sale of slaves, it should have to pass a three quarters majority in the Senate, as high burdens must be imposed on any attempt by the Senate to circumvent local laws. As for taxation, local governments should be free to tax their citizens as they see fit. As for the taxation of planets/systems by the Republic, taxes should only be levies on goods and services that leave one planet or system’s jurisdiction and enters another’s. This should apply both to government owed businesses, corporate industry, and individual enterprise. This will function as a tariff on trade but allow for local economies to go on without senatorial interference. An exception to this taxation/tariff should be relief missions sanctioned by the Senate, included refunds on missions posthumously sanctioned by the Senate.

[u/FirelordDerpy → u/Mac1692]

I stand with most of your statements, but I disagree with the idea of tariffs and would recommend finding an alternate means of taxation.

Currently there are many industries that assemble components made by factories all across the galaxy, however, tariffs would encourage them to concentrate everything into as few as possible locations, this is bad for the workers who's work will leave their planet to hyper-concentrate, and for the planet that the hyper concentration will happen on and becomes nothing more than a sprawling mass of factories.

I would instead suggest a fair tax on the profits of companies, a flat percentage tax no matter the size,

[u/Mac1692 → u/FirelordDerpy]

While I am glad we have found some common ground, it is difficult to find ways to tax industry that don't rob local governments of the same ability. By taxing on the movement of goods and services it further defends local jurisdiction in regards to taxation. The transportation of parts for the purpose of assembly is already an expensive process which causes the very concentration to speak of. While you are correct regarding the dangers massive sprawling factories in singular systems, this would happen regardless of taxation. The closer the manufacturing plant making servos is to the assembly plant making droids the cheaper the process and the higher the profits, as I am sure you are aware. A taxation of the transportation of goods and services would best allow for dues owed to be consistent with the amount of commerce one takes part in. A flat tax would be unjust as it would either have to be so high that it cripples small businesses, or so low that it barely exists.

[u/FirelordDerpy → u/Mac1692]

A flat tax of, just as a hypothetical, %10 scales no matter the seize of a business.

if it makes 10 credits it pays 1 credit in taxes, if it makes 100 credits it pays 10, etc.

As for the concentration, there will always be some decentralization because resources are split up, workers are available in certain locations, the product is used in one form in one place and one form in another, etc.

Right now shipping is very cheap, which allows products to be decentralized, it's no problem to have component factories on different worlds because those worlds have their own benefits. Add a cost every time you unload a product and it becomes immediately far more expensive.

[u/Mac1692 → u/FirelordDerpy]

Shipping may be cheap, but it is an extra step and therefore a cost, one which has caused the centralization of industry since the early days of the Republic.

As for the flat tax, 10% (as an example) really tears at ones profits if their small business is only earning 300,000 credits in a standard year. While on the contrary, 10% of a galactic corporation's income which would be billions if not trillions of credits each standard year would barely be felt. It would be more credits yes, but the burden of this tax would be much heavier on the small business.

[u/FirelordDerpy → u/Mac1692]

There are benefits to decentralization. It's weighing the benefits of the two against each other, taxing the extra step only guarantees it'll be chosen.

The flat tax would be on profits, so if the small business made 300,000 credits, they would pay 3000 credits in taxes. Yes, painful, but that is the nature of taxes, no one wants to pay them.

A big corporation still feels taxation, %10 of a million credits is a hundred thousand credits, a flat percentage tax scales, the burden would still be felt, and would still be a significant amount of money.

And if it's based off profits, then a small struggling business won't be paying that much in taxes anyways.

[u/Mac1692 → u/FirelordDerpy]

There are many factors to weigh when deciding between centralization and decentralization, I see no reason why this extra reason is more harmful than any of the others.

30,000 credits out of 300,000 credits is a major some to a small business in a manner that 10% of billions to trillion of credits is not to a major corporation.

It isn't a matter of how significant the quantity of credits gained is the the Republic, it is a matter of how much the quantity of credits lost is to the business. At a 10% flat tax corporate interests will still have money in spades to reinvest, diversify, or buy out smaller competing businesses. However, small businesses will be robbed of a chance to grow if they are held to the same standards as corporations that could buy them with a single day's profits.

[u/FirelordDerpy → u/Mac1692]

The extra reason is not only a massive increase in every stop, but also because one we start allowing it, it'll soon rise. It might be a tiny amount at first, but it'll slowly creep up.

30,000* my bad I mistyped.

The point of taxes is to generate revenue for the Republic, it's not supposed to be there to punish businesses for being big. A big company can fail as fast a small one, the larger the business, the larger the costs as well.

A small business may prefer to spend that %10 spent on taxes on a new walk in freezer. A big business may prefer to spend that %10 spent on taxes on a new freezer assembly line.

Even if you wanted the taxes to scale, that would still be a better solution than tariffs

[u/Mac1692 → u/FirelordDerpy]

Any tax can creep up, you could say the same of a flat tax. First it's 10%, then 15%, then 30%. But like all taxes, whether they rise or fall is entirely on us as Senators. If we don't want it to rise it won't.

I'm not suggesting punishing large corporations for their size, but a flat tax would punish small businesses for being small and be a barrier to the creation of new industry by anyone other than financial hegemons. Therefore I do not agree that the flat tax is superior to the goods and services tariff.

Lastly, I am not suggesting that goods be taxed by each system they pass through, they should be taxed when they reach their destination. If they are modified and moved again, then yes they would be taxed again at that time.