Taxation in Lower Columbia

Residents of the Federal Kingdom of Lower Columbia are taxed in various ways, and usually at both the state and federal levels of government. The federal government levies a flat 20% income tax on all individuals whose income for the previous calendar year was at least 150% of the national poverty threshold, and also collects a 10% federal value added tax on most goods and services. Most states also collect income and sales taxes, with each state setting its own tax rates. State income tax rates tend to be significantly lower than the aforementioned federal income tax rate, while state VATs tend to be higher. Corporate income is also taxed at both levels; the federal government levies a 25% corporate income tax, while states collect taxes on corporate income at various rates. Property taxes, like sales taxes, tend to be higher in the states than the federal property tax rate, which is 1% for most types of property.

Federal taxes are administered by the Federal Revenue Bureau, which is part of the Ministry of Finance. States each have their own tax authorities as well, while additional tax authorities administer local taxes.