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Before we begin let us link to the Chinese article.

Unfortunately, the well natured and hardworking deathdeity, as well as other supporters, have stumbled and proposed a series of ill-planned laws.

For grain and oil, the honourable congressman has proposed that we drop income taxes from 5% to 1% on the basis that a vicious cycle of taxation exists which leaves both manager and citizen with a lack of cash. Furthermore, he proposes a reduction in import tariffs from the current 99% to a mere 1% which is quite a reduction.

Firstly, since eChina is not a war hungry behemoth like some eCountries, a 1% income tax is great since it seems the People's Bank has enough reserves for now. This part of the proposal I can get on board with.

The part I cannot agree with is the 98% drop in tariffs. From my bad translation, my understanding is that he is proposing we follow eSingapore and try to focus on higher value manufacturing industries while shunning lower value gathering industry. Prepare for my argument (😛):

a) eSingapore has 400 people. Their 400 people can work in 40 factories, while our 4k can work in 400. It is more worthwhile for them to social engineer since they need to try to maximize their taxes much more than we do. We have more maneuvering room with our extra 360 factories.

b) They have one province: Singapore City. This one province has NO high resources! Of course they will focus on manufacturing! With only medium resources they will never have an efficient and profitable gathering industry...NEVER! We have high oil and high grain. Our oil and grain industries are/have been some of the cheapest in the eWorld. Our companies are/were very profitable.

c) It's been argued that eChina has too much grain, in particular, on the market. Simply put, a drop from 99% to 1% import tariffs is going to reduce this horde? Of course it will not. If any positive comes, it is that inefficiencies will be exposed and some general managers will smarten up and become more efficient (which means lowering salaries). Before that happens though, we will be flooded with grain from more efficient countries or countries with lower salaries. If anything, fully protect our food industry and promote the creation of more food companies to remove our horde.

I have more but this is getting long...

I am hardly a protectionist. In the past I have argued against raising the import tax to 99% in many a tax debate. On the other hand, dropping to 1% in an industry where we have high regions is just as bad. We have dozens of companies in grain and oil; dozens of human GMs. If the industry was not profitible, the companies would not exist and would not be run. People made the decision to open/buy these companies based on the laws at the moment of purchase.

Changing policy so wildly will cause 1) a flood of foreign grain/oil, 2) eChinese GMs shuttering plants and 3) more unemployment.

(In full disclosure: I have a grain factory that has been closed for months due to my recently busy RL, with the exception of providing myself a job.) While I will not take it, I would like to see an option for GMs of Q4 and lower (since the article claims only Q5 can earn money), who feel cheated by this new policy, to be able to sell their grain/oil company to the government. This isn't a tweak, its a rocket blast to the other side of the tax spectrum.

Again this is getting too long...

If we want to drop the import taxes I suggest we still protect the eChinese GM a small bit to at least cover wage variations between countries...10% or higher I would support. Above 50% and NO ONE will export to eChina, 1% and EVERYONE will export to eChina. a good 10-30% in my opinion would protect our GMs while still earning import tax income. 1% is too low.

Every single domestic owner and employee of the grain and oil industries will lose if these 2 laws pass.

Also Rea😛 In Chinese