April Tax Revenues/Expenditures

Day 1,258, 08:36 • Published in Ireland Ireland • by Bhane
Country Funds

Gold
BALANCE as of April 1, 2011 00:00 = 140.37
- 90 {A} donation to NIB
BALANCE as of April 30, 2011 23:59 - 50.37

IEP
BALANCE as of April 1, 2011 00:00 = 16,525.42
- 6,000 {B} to NIB to protect funds
- 10,000 for MPP with USA
+ 3,000 {C} from NIB to raise balance enough for Bosnia MPP
- 10,000 for MPP with Bosnia
+ 10,000 {D} from NIB to pay for MPP with Italy
- 10,000 for MPP with Italy
+ 5,166 {E} from NIB to raise balance while Israel MPP is voted down
+ 13,372.31 from tax collections (pre-tax change)
BALANCE as of April 14th, 2011 17:00 = 12,063.73 (the time of the income tax reduction.)
+ 10,000 donation from EDEN for a MPP (earmarked for Croatia renewal)
- 10,000 {F} IEP to the NIB to protect funds (Croatia money is put in bank until it's time to use)
+ 10,000 donation from TCO members for Bulgaria MPP
- 10,000 for MPP with Bulgaria
- 15,431 {G} donation to NIB to protect funds
+ 10,000 from Seanan's MPP fund for Poland
- 10,000 for MPP with Poland
+ 13,198.89 from tax collections (post-tax change)
BALANCE as of April 28, 2011 14:00 = 9831.62 (when food income tax was raised)
+ 10,000 {H} from NIB for Croatia MPP renewal
- 10,000 for MPP with croatia
+ 1,678.03 from tax collections (last 1.4 days of April)
BALANCE as of April 30, 2011 23:59 = 11,509.65


Tax reduction analysis:
Tax revenues of 13,372.31 through Apr 14th 17:00 (14.7 days)
Average of 909.68 per day, before income tax cut
Tax revenues of 13,198.89 from Apr 14th 17:00 through Apr 30th 14:00 (13.9 days)
Average of 949.56 per day, with 1% income tax in the four main industries.
The income tax cut had no appreciable effect on tax revenues.
Because VAT already accounted for the majority of tax revenues, an income tax cut did not affect eIreland's accounts very much. In fact, the tax cut allowed Joe 2-click to have more money in his pocket and increase his consumption. Any revenue loss from income tax was counteracted by that increase in consumption which lead to increased VAT collections.

edit: I was asked "Why are VAT collections a larger portion of tax revenue?"
It is a simple factor of availability. Income tax can be collected up to once per day, per person employed in eIreland. That's it, there can be no collections after everyone works for the day. There is a top limit to the number of income tax collections. There is no limit to the number of market transactions that can take place, so there are far more opportunities to collect VAT. There is no top limit to the number of market sales per day.


Comments:
I hope this report will allay the fears of people who thought the income tax cut would slash revenues. Our tax revenue was roughly the same, before and after the tax cut to 1% across the board. I hope we can reduce the food income tax back to 1% before the raw material changeover happens. (I'm hoping an affable TD will read this and make the proposal)

I would also like to point something out to everyone who claimed the IA is a major drain on our tax revenues. We made over 28,k IEP in revenue and spent more than that on ta😜aid MPP's (USA, Bosnia, Italy). The IA needed ZERO tax money, and I doubt they will need any in the near future. They are standing strong on their own.




New Ireland Bank

Gold
BALANCE as of April 1, 2011 00:00 = 156.88
+ 90 {A} donation from CF
- 92.85 ADJUSTMENT (see note)
BALANCE as of April 30, 2011 23:59 - 154.03

IEP
BALANCE as of April 1, 2011 00:00 = 24,002.27
+ 6,000 {B} from CF to protect funds
- 3,000 {C} to CF for Bosnia MPP
- 10,000 {D} to CF for Italy MPP
- 5,166 {E} to CF to raise balance while Israel MPP is voted down.
+ 10,000 {F} from CF to protect funds (earmarked for Croatia MPP)
+ 15,431 {G} donation from CF to protect funds
- 10,000 {H} to CF for Croatia MPP renewal
+ 13,948.62 ADJUSTMENT (see note)
BALANCE as of April 30, 2011 23:59 = 41,215.89


ADJUSTMENT
This is a catch-all category. It includes public donations to the NIB, and the MoF's work in the monetary market. It includes any donations from the NIB to organizations like the IA, or the Irish Community's efforts. In the end, the NIB spent 93 more gold than it earned, but received 14,k more IEP than it spent. We essentially earned 150 IEP for each gold we spent. All in all, I think the MoF did good work.


Thanks:
Thank you Marcus and Dubth and Seanan for putting up with my annoying mails this month. I needed their help to get all the information about who paid what, and when. Thank you, guys.

I would like to do this article every month. Now that you have seen the first version, you guys know what kind of information I need. I hope that future CP's, MoF's, and vatious eIreland benefactors will be helpful, and mail me with info about donations, and expenditures, and any other info that will help.


footnote: Transactions between NIB and CF are denoted with "{letter}" so you can match the same transaction on the two different balance sheets.

P.S. I don't doubt I have made some arithmetic error or typo or mis-attributed a certain transaction. I inevitably forget to carry the 3, or miss a decimal in a paper like this. Please mail me with any corrections, so I may edit the article.