Government of Kokomo Islands

The Kokomo Islands is constitutionally regarded as a "right-wing authoritarian state", guided by the ideas of free and unregulated markets and capitalism. The constitution ascribes that the islands are to be governed by the National Ruling Party unless other elections are established by the government. The government allows other parties, but they are not allowed to replace the current government without the NRP's approval. The constitution protects freedom of speech, press, worship, movement and association.

Executive power is exercised by the Kokomian government, which is led by the president of the state, which is represented by the House of State and the House of Ministers. Legislative power is led by the House of Legislation, where the NRP is represented constitutionally with 20 out of 40 seats. The judicial branch is represented by the House of Justice. The House of Justice elects two new judges every 4 years, and the maximum of judges represented in the department is maximum twenty. Judges are not allowed to be affiliated with a political party.

Political developments
After the independence in 1965, the government firstly consisted of the invasion leaders that were associated with the Luciano crime family in the United States. Before the establishment of the constitution and system of politics, mobsters and military generals were selected by the new government to temporary govern political posts such as health, education and transportation. The body of governent was established on November 13, 1965, and elections were held within the judicial and legislative branch soon afterwards. Most of the ministers before the body of government remained in their positions throughout the 1960's. The constitution was written and ratified on the same day as the establishment of governmental body. The constitution was based on market liberalistic principles, where it was central that anyone would be allowed to make a business out of whatever they wanted to, (§1) as long as it did not discriminate or encourage/perform illegal activies, this included gambling, prostitution, and firearms trade. Taxes were only to be paid if you owned a business that took up much of that sector on the island. Many of the laws and rights within the constitution were borrowed from the U.S Constitution. The constitution outlaws communist parties and communist activity.

Extensions to the Constitution were followed up in so-called "Acts". Examples of these are the 1971 Construction Standards & Requirements Act and the 1983 Anti-Criminal Capital Act.

The National Ruling Party
The National Ruling Party was established at the same time as the constitution. All government members became members of the NRP, and the party was declared by the constitution to be the governing party until the government decides for elections to be held. The NRP is also constitutionally granted 20 seats in the House of Legislation.

Left wing
"Democratic Worker's Party ( DWP )"( Democratic socialist party concerned about the inequality, political corruption, distribution of wealth and amount         of private businesses dominating the economy. Heavy opponent to NRP constitutional rights and the low level of taxes in the country. )"Justice Party of Kokomo ( JP )"( Social democratic party concerned about corruption, inequality and the influence of banks and wealthy                        individuals. They also want to establish a official welfare security system and free education. A majority of legitimate latin immigrants vote for the party. This party opposes the NRP constitutional rights. )

Centrist
"Pleasure Party ( PP )"( Self-claimed centrist party fighting for more leisure arenas, legalization of cocaine and heroin, sex slavery and more pleasure ventures on the island. The party is often taken unseriously by left-wing and some right-wing parties. The party consists mostly of senior voters, "originals", beachbums and tourists that have decided to immigrate, a majority of them come from Key West, Florida. )

Right wing
"Kokomo Islands Libertarian Party ( LP )"( Economic libertarian party supporting the free market of the Kokomo Islands, however opponent to the                        authoritarian rulership of the NRP and corruption among the government officials, the LP often take stance with the PP and left-wing parties to win against other parties. )"National Conservative Party of Kokomo Islands ( NCP )"( Mostly market capitalistic and a conservative party, seeking to establish a national identity and feeling on the              islands. The party is very opponent to  Latino immigration and United States involvement in island politics and              subjects. The party is very supportive of the national army and wants to spend more funds on making the army            better, bigger and more advanced. )"National Ruling Party ( NRP )"( A authoritarian party that mostly associates itself with free-market ideas and little government involvement in economic sectors. The NRP claims themselfes to be "across the political borders" altough it is pretty easily positioned on the political map. The party shares many of the same views as the NCP except that the NRP is more open to immigration. The NRP seat members does not support laws or acts proposed by other parties, as this is seen as highly undemocratic )

"The Voices of the Elite Party ( Elite Voice ( EP )"A elite capitalistic party were the members consist only of wealthy voters. The party requires a minimum income          of $1,000,000 a year to become a member. The party has own clubs, penthouses, venues and golf courses that           is only open to members of the party. The party often endorse the NRP but is very opponent to immigration from           third-world countries. The EP is against taxation and regulation, and many members are heavily                                 opponent to the taxes on market domination. )

Tax and fee levels
The tax levels usually vary between each administration. During the Morelli and Rivalto administrations, treatment and gambling taxes were usually around at 8-10%. Rodman's more aggressive tax approach has led to increases in market dominance tax from 25% to 30% and from 15% to 30% in the treatment business. Even though it is unconstitutional to tax based on individual income and property, the government can still put temporary taxes of any kind that can last up to 12 months. These temporary taxes are called momentary taxes.

There are several governmental fees, such as; registration of aircraft and watercraft. This fee is fixed at 7% of original price for aircrafts, and 5% for watercraft. Fees on car registration was discontinued in 1974.

The government collects taxes on following activities:
 * Gambling ( 15% of casino earnings )
 * Treatment business ( 30% of business earnings )
 * Market dominance ( 30% of business earnings )
 * U.S company tax ( 10% of business earnings )  - a level of tax U.S companies have to pay to operate businesses on the islands.

Timeline of momentary taxation and fees
1967 - 1972 - Income tax at 25% for all foreigners residing on the islands.

1974 - 1976 - 30% Earnings tax on foreign tourism companies operating on the island.

1980 - A 3 month-long property tax test period, all residents with properties exceeding $500,000 had to pay 1% of that property's value every month to the state. So for a property worth $500,000 it would be $5,000 every month in taxes. This was done to raise funds for investing in other federal sectors.

1984 - 1986 - Property tax on foreigners owning residential property. Every year, the owner has to pay 5% of a estate's value to the state, regardless of the property's value.