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Dept of Finance : New Taxation
I started a topic on the forum about a new Taxation Scheme :
http://forum.erepublik-ie.com/viewtopic.php?f=17&t=276
One Important NOTE :</strong> Remember Income Tax is applied to salaries, the reason why i proposed Low Income Tax level is that while there is no way a worker can avoid the income tax, game mechanic<strong>s allow company owner to avoid it, so the Income Tax is basically a tax on the poors ( the workers )
Here is the text of the topic :
TOPIC START
Well, i'd like to start a 3 days discussion upon a new tax scheme.
Here u can find my proposal :
http://spreadsheets.google.com/pub?key=pkMzC3bfZ2pGVf_HkWz0fWQ
Basically keep in mind a few points :
1. About Income Tax, Company owner can basically avoid to pay the income tax ( or just leave the money in the company account which is often good ), so income TAX is a applied almost only on Workers!; this is why i propose to never put an income tax higher than 1%
2. About VAT Tax, this is the only way to be almost sure the taxation is really applied ( unless people sell through donations ). This is why i propose three possible kind of VAT, low (5%) on necessary goods ( food and house ), medium (10%) on one time need goods ( tickets and gifts ) and high ( 15% ) on weapons (as u need to buy weapons only if u are reach enough to go to war ).
3. About Import Tax, here too i'd go for very low taxation ( 0 to 5% ) in raw mats. low taxation ( 5 to 10 % ) in Food and house. Medium taxation ( 25% to 50% ) to other goods ( gifts / tickets / weapons ).
4. Hospitals and Defense System, are so unique that they don't need taxation at all in my opinion.
As u can see, taxes are generally lower than before. I think that people will not try to avoid paying taxes if they know they are low. Plus i'd try to probably cut on some country expenses.
In the next three days i'd like to properly define what all the details about the taxation scheme, and vote all on Friday
thx
TOPIC END
http://forum.erepublik-ie.com/viewtopic.php?f=17&t=276
One Important NOTE :</strong> Remember Income Tax is applied to salaries, the reason why i proposed Low Income Tax level is that while there is no way a worker can avoid the income tax, game mechanic<strong>s allow company owner to avoid it, so the Income Tax is basically a tax on the poors ( the workers )
Here is the text of the topic :
TOPIC START
Well, i'd like to start a 3 days discussion upon a new tax scheme.
Here u can find my proposal :
http://spreadsheets.google.com/pub?key=pkMzC3bfZ2pGVf_HkWz0fWQ
Basically keep in mind a few points :
1. About Income Tax, Company owner can basically avoid to pay the income tax ( or just leave the money in the company account which is often good ), so income TAX is a applied almost only on Workers!; this is why i propose to never put an income tax higher than 1%
2. About VAT Tax, this is the only way to be almost sure the taxation is really applied ( unless people sell through donations ). This is why i propose three possible kind of VAT, low (5%) on necessary goods ( food and house ), medium (10%) on one time need goods ( tickets and gifts ) and high ( 15% ) on weapons (as u need to buy weapons only if u are reach enough to go to war ).
3. About Import Tax, here too i'd go for very low taxation ( 0 to 5% ) in raw mats. low taxation ( 5 to 10 % ) in Food and house. Medium taxation ( 25% to 50% ) to other goods ( gifts / tickets / weapons ).
4. Hospitals and Defense System, are so unique that they don't need taxation at all in my opinion.
As u can see, taxes are generally lower than before. I think that people will not try to avoid paying taxes if they know they are low. Plus i'd try to probably cut on some country expenses.
In the next three days i'd like to properly define what all the details about the taxation scheme, and vote all on Friday
thxTOPIC END
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Your proposition seems to contain some important elements. Good work.
Personally, I am in favor of decreasing the income tax on Houses. This will hopefully promote further consumption of higher qualities of this product, which might lower the demand for more costly food. Subsequently, the consumption of other product beyond basic necessity goes up when people get the extra money and theoretically; some of the work force from the Food Industry might even be transferred to other sectors.
How are gifts more of a "one time need goods" than a house? Aside from upgrading, you buy a house and stick with it. Gifts are bought more frequently by workers in higher quality companies to keep wellness high.
Ide have to agree with abandon, with the current price of gifts as they are, how can we warrent such high taxes? especially since the health department will be wanting alto of gifts, thus, higher prices less gifts for the IEP...
I also totally disagree with Income Tax, having it low makes companys escape any costs! I personally move money around all my companys on a daily basis. I think any product company not withdrawing funds is strange... Ide expect atleast a 10% tax to income! Otherwise this is just another boost to owning a company!
I think his point is that a company owner can get around the income tax via the monetary market, whereas the workers cannot. So the only ones taxed would be the workers
@czeckmaster thx , i didn't want to say it so straight, but it was exactly what i meant