17
Dept Of Finance : Taxation and Funding
1. A few days ago i proposed a new taxation scheme, and started a debate on the forum :
here is the topic on forum :
http://forum.erepublik-ie.com/viewtopic.php?f=17&t=276
and the taxation scheme :
http://spreadsheets.google.com/pub?key=pkMzC3bfZ2pGVf_HkWz0fWQ
A few people wanted higher income taxes, i'd like to have more opionions as tomorrow i'm gonna start the changes.
2. Still waiting for other depts to ask for funding
here is the topic on forum :
http://forum.erepublik-ie.com/viewtopic.php?f=17&t=276
and the taxation scheme :
http://spreadsheets.google.com/pub?key=pkMzC3bfZ2pGVf_HkWz0fWQ
A few people wanted higher income taxes, i'd like to have more opionions as tomorrow i'm gonna start the changes.
2. Still waiting for other depts to ask for funding
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Ive previously discussed this with andre, and now with my party.
We totally disagree with the fact that there is no Income Tax. You claim this is because companys can easily avoid paying Income Tax, well this is a stupid comment, and infact something to save your own company some cash.
You see, we can avoid any Taxes we want, and infact get much cheaper products, by using traders, this totally avoids any kind of tax, as such doesnt benifit the country at all. Ive personally used these traders to get myself a better house, I know many who use it to get food.
Taxing the product makes no sense, higher product price simply means people will buy elsewhere, or simply, buy a cheaper, less effective product.
An income tax of 10% is fair, and its something that will effect everyone, not just the citizens.
Its about time that Companys in Ireland stopped freeloading, they get lots of workers, overcharge on products, hell even export all products, and what does Ireland get out of it?
I, and those of my party will not vote in favor of these changes until the VAT is lowered, and the Income Tax set at 10%!
Just after having a read through it Andre and it looks good.
Since when is 4 votes considered a majority in any congress?
@Pavonis : I only sayd that most people agree... and 3 out of 4 voters said yes...
@Snakes : "I, and those of my party will not vote in favor of these changes until the VAT is lowered, and the Income Tax set at 10%!"... well gary... u are wrong... u will not vote at all... as U RESIGNED FROM THE CONGRESS! and was totally ur choice to do that....
Snakeyes, you are completely wrong. Each company has a money trading account.
SO A owns Company A. Company A places a sell of 5000IEP for 0.001GBP on the market.
SO B is quickly logged into, and SO B buys the 5000IEP for 5GBP
SO B donates back the money to SO A
SO A now has the 5000IEP out of the company accounts and in the normal accounts. If SO A had collected the 5000IEP under a 10% Tax rate, SO A would only have recieved 4500IEP.
That is a simple explanation of why Income Tax does not affect rich companies as they can avoid it, and it is actually just a tax on the poor workers.
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Also there is no real difference between increasing VAT and increasing Income Tax, the ultimate effect is the same.
If I earn 10IEP gross and Income tax is 0% and VAT is 20% and my daily needs cost 5IEP net.
Income 10 IEP
Purchases 6IEP (5IEP Goods 1IEP VAT) Left 4IEP
If Income Tax is 10% and VAT is 0%
Income 9IEP (10IEP gross less 1IEP Tax)
Products 5IEP Left 4IEP
The Net effect on people is the same both ways.
Inq
@Inq - sorry thats utter bollox, i wouldnt sit there and go through all that, im pretty sure most companys wouldnt too... The effort just to get around some Tax is to be honest, pathetic, and companys that would, clearly shouldnt be the ones we want in Ireland.
@ 5n4keyes
Its not something I indulge in as I re-invest money, but this is the Std Business practice of all large companies in eRep. It's also very easy, its about as much effort as selling Raw Mats from a company you own to a finished goods company you own, something we all do all the time.
Inq
I agree with snake, if we every hope to change this economy then everyone must pitch in. It's scary to say, but at this point the more taxes we put in place the better. We'll never know whether IEP harvesting will work unless taxes are beefed up.
I made a change to the taxation scheme proposing +5% income tax on the 5 major domains ( moving, food, weapons, house, gifts ).
I'd leave RAW MATS a 0% to encourage workforce there ( as companies already have the issue of having halved productivity ).
May i hope in support from Kiemar and 5n4keyes as well?
Much better
I'm still not completely satisfied with it, but democracy is built on compromise. You have my support