[eRepublik] 2090 - Work Tax impact on Work As Manager option

Day 2,090, 03:01 • Published in Serbia Romania • by elbandido



"Fix the economy!" is the phrase most often called out by citizens in shouts and articles. But most of them have no idea what this sentence means, what changes might be and what implications would follow, in case of some changes in the economy module. When someone talks about economics thinks only profit from his own pocket, which should be daily, larger and if possible from day one, without too much calculations and less effort.

Very few actually know their profit is influenced by other players, soldiers and politicians, friends or enemies, commanders or presidents. In my opinion, a big step in this direction was made yesterday. Plato introduced tax for working as manager (WAM) option, called Work Tax.


What is Work Tax? The Work Tax is similar with the current Income Tax but it will apply not only for employees but also for the ones that Work as Manager. Until now, managers can work in their own companies without paying any tax, creating overproduction with minimum investments.

Who decides the level of this tax and how is calculated? The Work Tax will be set by the Congress, and can have a value between 1% and 25%. The tax will be calculated based on the average salary in their country in the last 30 days. The actual of the Work Tax is the percentage set by the Congress applied to the average salary.

Example: In country A the average net salary paid in the last 30 days is 10 currency and the voted Work Tax for the country A is 10%. In this case, the value of the Work Tax for Work as Manager will be 1 local currency. The Work Tax will be applied for each company in which a player works as manager. Therefore if a citizen owns 5 companies and works as a manager in all of them, he will pay the value of the Work Tax multiplied by 5. If the citizen doesn’t have enough money to pay the Work Tax, he will not be able to start production in his companies.

How is the average salary calculated? The average salary is calculated based on all the salaries paid by employers from a specific citizenship country in the last 30 days (the citizenship of their employees doesn’t matter, what matter is the citizenship of the employer).



Ok, that being said, let's see the impact on your profit with this new tax, impact influenced by other players (politicians and soldiers).


I will take the example of Serbia, as this article is published in Serbia. You will see below in a table, that income of Serbia increased, with this new tax, from 40,708 CC to 149,190 CC, almost 4 times more. It may not be that income every day, but we will use as an example. We have an increase of 109,000 CC, money that did not exist before, in 1 day.

And here comes the interesting part. Let's say the current serbian government decides that this money be used to stimulate the soldiers to win battles. Also Serbia must defend simultaneously 6 RW's, and decides to set Combat Orders (soldiers will be able to accept Combat Orders set by MU's and receive currency for dealing damage in battles) for these battles.
- I'm a division 4 soldier, a little one soldier (not tank)
- With a hit with q7 of 35,629 damage
- Can I give a maximum damage of 4,275,456 at once without Guerrila Fights (because in this example we use RW's)
- Also my MU Combar Orders is set to 'Fight if: Domination under 52%', paid with 50 RSD for every 1,000,000 damage inflicted.
After I fought, I received 213,7728 CC, almost 1 gold. With 109,000 CC, 511 soldiers like me can have 1g/day.

Certainly older soldiers (tanks) can get more money from this. Also lower divisions can be paid with increased amounts of CC from Combar Orders. The point is that money collected from Work Tax can be paid very easy to soldiers who will fight at Combat Orders. My personal suggestion/opinion, a higher level of Work Tax bring higher incomes, don't set this Tax to 1% because you lose income.

This new tax will provide countries with a supplementary source of funding and will give the Congressmen and Presidents a new tool that can help the countries make a step toward improving the state of the economy.



Enough with the words, let's get to numbers and see what was the income difference before and after the Work Tax, keep in mind that the numbers are only for one day. You can see World Income before Work Tax was 621,681 CC and after Work Tax was implemented World Income is 1,739,011 CC, triple. Of course, countries that have recorded the highest growth have most players with companies.



Let's see also an estimated daily income (if every active citizen from a country have at least 1 company and work in it) depending of average salary and actual level of Work Tax. Data collected on Day 2089 at 23:30 eRep time.



Regards,
elbandido