Tourist tax

The regular visitors of Republic of Lagrangia will be aware of our opposition toward income taxes, and instead we advocate the raise of public revenue through the lease of land and radio spectrum frequencies. Additionally we have argued in favour of so-called health taxes on sugar, soda, salt, fat to partially fund a universal single-payer healthcare system (and to reduce the amount of unhealthy ingredients in food).

Mordan citizens and permanent residents will enjoy both free healthcare as well free public transport, which they have paid for through the LVT. However, foreign tourists will also made use of these particular services. It seems reasonable to us if tourists will also contribute to these services. The question is how they can do this.

In the Netherlands there’s a local tax called tourist tax (toeristenbelasting), which local governments are allowed to levy upon tourists from outside their jurisdiction (both domestic and foreign). Usually this tax is charged per night spend at an ad valorem base. If a hotel charge 100 per night, and a tourist has to pay a 5% tourist tax, he will have to pay 105 to the hotels, which will turn 5 to the local government.

We propose to introduce a similar scheme, but with several adaptations. First our tourist tax will be collected by the federal government rather than by local governments. Hence there will be a uniform tariff throughout the nation (in the Netherlands local governments are not obliged to charge tourist tax). Second in our system the tax will only be charged onto foreign tourists, not on domestic ones.

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8 thoughts on “Tourist tax”

    1. Of course, nothing is free, therefore we need some way to fund the programs we want to implement. With free transport and free healthcare, we simply mean you have not to pay at the moment you make actual use of that service.

        1. There are a lot of them, such as producing alloys. Here on Earth many metals don’t mix with each other because of differences in density. In space there’s no gravity, so we can produce “impossible” alloys in space.

          Another example, is the production of certain crystals.

            1. Any industry which cannot exist on Earth, can be monopolized by a space colony. But there’s a caveat: if there are many competing space colonies, they will lower the prices of the commodities produced by them.

              But more important whether space industries have a monopoly, we should ask whether space industries can produce goods competitively. One example: asteroid mining will be profitable if we specialize in exporting minerals which are very scarce on Earth, but highly valued. However, it will not make much sense to mine iron on Asteroids for terrestrial consumption. See also this post.

  1. This is a very interesting notion of raising public finances, quite libertarian, however who will set these taxes? what do you mean by ‘land’ in the context of a space colony.

    Also health/green taxes are ultimatly self deafeting as if they work you will raise less revenue and if they don’t work you are left with the problems they were supposed to cure – obesity/pollution.
    Example 1 – UK air passenger duty to cut aircraft emmissions is cutting the use of flying by businessmen as well as the less well off raisng the cost of doing business
    Example 2 – Road fund license in UK is set depending on CO2 emmisions, but now people are buying smaller cars revenue to exchequer is reduced to point where all the bands are being raised to extract the same level of revenue.

    A tourist tax would work but what do you mean by tourist what about temporary workers children elderly or les productive members of the society?

    1. “This is a very interesting notion of raising public finances, quite libertarian, however who will set these taxes? what do you mean by ‘land’ in the context of a space colony.”

      The owners of the space colony, which will be in our plan be the residents of the settlement, will set the taxes, at least in case of the tourist tax. Land lease prices will be determined by auction. With land we simply mean the surface of the wall of a space habitat, with some volume above.

      “Also health/green taxes are ultimatly self deafeting as if they work you will raise less revenue and if they don’t work you are left with the problems they were supposed to cure – obesity/pollution.”

      You raise here a very valid point. However, the health tax as we proposed is an earmarked tax, i.e. it can only be spend for healthcare. If it works, there will be less revenue, but in that case overall healthcare spending is also less. Further the healthcare tax is intended only to raise a part of the funds of our healthcare system (the remainder to be allocated from general funds), a part which in an ideal situation would be equal to the cost resulted from obesity.

      In case this tax fails, then we have at least some revenue for treatment of health problems caused by obesity. Btw, your examples are quite illustrative, thanks.

      “A tourist tax would work but what do you mean by tourist what about temporary workers children elderly or less productive members of the society?”

      Excluded from our definition of tourists are permanent residents and temporary workers, and so are their children. With tourist we refer to those foreigners who will only stay for up to three months in our space settlements, hence they are not considered part of society.

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