Join the new world

Strength and Honour

nice work

[removed]

"Can the Croatians make capitalism profitable again for employers?"

It's nice to see a country making the attempt to encourage their economy.

More like their own government revenues, while income and VAT drops help their employers, they'll have to compete with 10/10 resource countries' companies selling on their market (with low import taxes, 3% for weapons and 5% for food).

I would love to see that as well. Croatians may be in the position to do so with low taxes,high resource bonus and high demand economy, though that depends on Admin influence.

This is nothing new....the Romanians / Petrescu tried to establish the same in eIreland back in 2008

>This is nothing new
>lists example that's 5 years old

"Can the Croatians make capitalism profitable again for employers? It will be interesting to see."

Surely lowering taxes would make it harder for the employers because they will now be in a much more competitive market dealing with people who have 10/10 country resources?

They're not making it easier for Croatian employers, no, but they want to internationalise their market.

They're not trying to become the factory hub, they're trying to become the marketplace: They want people to buy Croatian licenses and sell their goods there in the 1% VAT environment, they've basically cut every tax to minimum except importation, which is also quite low. So people can produce in 10/10 resources countries (which may not have low VAT), and then sell in Croatia for a high profit margin.

It's a cunning plan to exploit international trading, but whether it works depends on whether or not the Croatian market is actually the most profitable to sell in. TWO might boycott Croatia as well, which might put a damper on things.

The income and work tax cuts were necessary or else their native companies would go bust, in effect.

Interesting, good article Brian.

What are the likely effects on our economy? I think Sweet said VAT was our biggest source of income?

Well, sellers who have Croatian licenses could potentially have a new market to sell to that has very low taxes.

Our biggest source of income is MM returns from bank investments. VAT is #2

Under our current system taxes pay for MPPs while MM profits pay for army funding and org regrowth. This will last a few more months until we get back to a sustainable treasury. Once that happens we will have more options including (possibly) full wep supplies, lower taxes, more MPPs.

Any additions to the treasury will help, these gold bonuses especially. Maybe I'll start one of those thermometer things like a fund raiser.

Interesting...

v

Any chance of the MoF putting up a current article on our financial situation? Projections of how this will affect the national income, with a note on how the work tax if producing?

I'm seeing that I'm paying a lot more money in from the work tax than I ever did under the income tax, and I'd like to know the plans for it's usage.

More MPPs are the plan for its usage.

I may write an article about the necessity of that.

Booo. You should use it for COs and go on a landgrab instead.

I have been tasked with increasing tax income so we can afford more MPPs. My first goal is 10 so 100k revenue per month, an increase of about 30%.

Current International average Work Tax is 4.54% so we're pretty standard.

I wanted some initially accurate numbers but these Admin missions throw everything off. Expect to see an update and possible tax adjustment with the new Dail.

Oh, the joy.

Standard still sucks, tho. Thank you and I look forward to the article.