Cancel Import Tax On Wood &/or Iron ????
Day 547, 05:07
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Published in Australia 
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by
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by Australian Warlord
(There's a reason for question marks)
As you know, wood & iron isn't the most efficient things to produce in eAustralia. This increases the production costs of houses & weapons. To some degree this increases the black market.
Simple topic of interest, would the eAustralian economy do better if it surrendered the wood &/or iron industries for a healthier housing &/or weapons industries?
Of course this would be determined by whether the black market in houses &/or weapons plus productivity increases would be reduced by a greater amount than the value of the wood &/or iron industries.
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Just one of the issues that should be discussed but currently isn't.
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http://www.erepublik.com/en/company/sa-for-indonesia-189101" target="_blank">http://www.erepublik.com/en/company/sa-f[..]9101
Buy now for SA
I know that the answer would be much easier if we could do deals with other small eNations however the game doesn't have this facility.
Good Suggestion, Logical and Makes Sense.
Something you can Include in your Manifesto?
I was thinking we should lower the incme tax on thoses industrys . This would give them an advantage recuiting workers . Give up on Aussy industry : NEVER
Actuallyu we *can* do deals with other enations. The only users of wood are the two Hospital companies; the 5 housing firms; and (in theory) the defence system company. A single org in say eFrance, eUSA or eIran could buy eAustralia's complete Wood needs. None of these three enations have local supplies of diamonds - and the eUSA only charges 1% inport duty on diamonds. Offering to spend all eUS$ earned selling diamonds to buy eAmerican Wood, if the Americans pay for export licenses to their markets, would be a fair deal.
Most of these manufacturing companies have proven through their donation lists that they already buy on the black market. And if they are already buy on the black market they SHOULD be buying the cheapest RM available.
So if they have the advantage of the cheapest RM through the donation method, why are prices so high? Are they making strong profits (which I am not at all opposed to and believe in the free market), or are our wages too high? I do not consider either of the two bad things. Just looking for the TRUE root cause to the high prices. 🙂
John (Icey1174)
Good article AW and a good reason why the tax should be lowered.
I think whitelaughter and WBF make good points. There's little to stop a company producing high region wood/iron and shipping it in through donations.
Any substantial lowering of the tax would lead me to do just that but to but an Oz liscense and sell it into this market.
The downside is to existing Oz company owners that couldn't compete and would have a terrible time trying to sell their companies.
I believe we should concentrate on our fortes, which happen to be grain and diamonds, and let the global markets do their work. BUT It cannot be done overnight. We have companies in the wood and iron business and they need the chance to become dormant.
Also we could risk becoming vulnerable to a trade war if we find ourselves without allies who are willing to sell those goods in our markets. We might find we need those companies to become active once again. We do not want to be held to ransom and have no armaments industry due to a lack of iron.
@AW: Good article, interesting concept, can't really comment for the Iron market, but I can on the Wood Market. There is no real need in my opinion to lower the Import Tax on wood. The wood market prices are fine, they aren't elevated and in most cases most Wood Company owners are selling their wood at Under the RRP used by the ABA. Lowering the Import Tax on wood would surely destroy the Industry in eAus.
@Icey: "Most of these manufacturing companies have proven through their donation lists that they already buy on the black market. And if they are already buy on the black market they SHOULD be buying the cheapest RM available."
Are you referring to Iron users or Wood Users? As a housing company Owner I don't buy outside of Australia. It costs me a little extra but at least I'm doing it. I sell my Houses cheaper than cost and lose money on the deal. So who exactly is doing what you claim?
"So if they have the advantage of the cheapest RM through the donation method, why are prices so high? Are they making strong profits (which I am not at all opposed to and believe in the free market), or are our wages too high? I do not consider either of the two bad things. Just looking for the TRUE root cause to the high prices. 🙂"
I'd like to see you clarify what exactly your refering to as too high. As I said before, the Wood Market prices in Australia are at a good level. The Housing market prices are crap, but thats because of you destroying the industry in this country by your own black market deals in housing.
Griffith has it right
It's impossible for the housing market to survive while we have black market deals going on so yeh there are three options us in the housing market. Import, subsidise or die
I know from experience it's impossoble for me to subsidise and the only opyion left for me to go in line with the Q1 company's for value for money.
Crusafy me I don't care my mind is clear of all guilt
There are only like 3 running housing companies left in aus now the rest have no wood or employees and thats because they could not get a turn over.
I did what I had to survive and it has ment $700 saving over the recrommended retail price chart. So like I said no guilt what so ever