Article 18 – Taxes

Article 18 – Taxes

Section 1 Generally

Taxation is a joint Federal Realm power.

Section 2 Sales Tax

The Parliament may levy a tax on the sale of consumers’ goods not to exceed twenty percent ad valorem. Purchases of food costing less than 50 silver pennies and clothing costing less than 100 silver pennies shall not be subject to the tax.

Section 3 Initial Realm Contributions.

For the first twenty years of the government under this constitution, each Realm government shall contribute a sum equal to the inflation adjusted average amount that it spent in the five year prior to federation for its navy, plus twenty percent of what it spent on its army, and fifty percent of what it spent on its air force.

Section 4 Additional Realm Contributions

In addition to the forgoing, a levy on the Realm governments of up to 5 percent of their budget may be imposed during the first 20 years, but it must have the consent of the Senate as well as the commons. After the contribution in section 3 of this article have ended, a levy on the Realm governments of up to 15 percent of their budget may be imposed, but if it is more than 8 percent it must have the consent of the Senate as well as the commons.