Higher Work Tax: Did we all stop WAMing?
J.Canuck
I'm not doing this to be critical as I was more or less for trying to raise the WT to try raise revenue. I've been too lazy so far to look at the issue closely (and still am) but a quick observation about daily tax revenues is interesting.
If it is just causing people to stop producing via "Working as Manager" the higher WT might not be working, leaving the government without any additional revenue and individual citizens with less goods to consume.
There's probably not enough data yet - or I could be missing something - or it could be some people will start WAMing again once they deplete their inventories a bit more. Time will tell.
Comments
not sure what revenue levels were before 2793 - I'm assuming that $10,000ish is the old revenue level
Right around 9k when I checked during the debate.
or is that last bar an incomplete day...?
I'd say that's the problem. 🙂
the last bar is an incomplete day
10% worker tax .. jesus
Frankly the tax "works" as long as we see some gains compared to the 5%, which we clearly are.
Nothing else is relevant? Less goods and lower activity levels? Struggling newbs?
At some point we'll need to evaluate and see if it 10% is the right level.
Like I said - I'm late to the game - but I'm starting to think 10% was too big a jump.
just think how much the low q weapons producers are getting screwed over now.
As I said in the other thread, the only group of people that have a valid concern are large company owners. Those with many companies will be suffering. The tax is negligible for all other parties.
I don't really feel all that sorry for anyone who invested in a low Q weapons company looking for a profit. Profits have always been elusive there.
it is more than company owners that should be concerned. q1 frm companies are now basically working for the government lol. And now look at the cost of q2 food, inventories down, cost now on the rise. If the decline in taxes between day 796 and 798 is due to company shut downs (worst case scenario, may or may not be could be due to lower activity on the weekends), Canada may have just lost over 400 companies. The tax won't work if the business owners stop producing. I f the trend continues downwards there will come a point where the country is screwed.
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We have tax revenue fluctuations up to 10% all the time.
The revenue before the tax took effect was about 8800 per day for the week before the hike. The first three days afterward looked like almost no one cared; the WAM dropoff was actually quite modest. But the weekend trended pretty sharply down.
And the very last bar is an incomplete day - that's today so-far. We'll know by tomorrow really whether that was a weekend effect or the start of the collapse of Canadian domestic production.
I thought WAM would have died when everyone was worried about the added EXP to their rank.
But there should be a balance - if production goes down then prices should go up so VATs should get a boost.
It all depends on market prices - people should use their brain and see that the WT results in a cost of goods that exceeds the market - therefore don't make any more. Trouble is people might not see that and produce anyway. Others may not bother to click back in the work if they think it's worth their while to produce.
If you read chochi's comment in another article, they want to keep prices low. And the trouble is people may not see it... yet they are selling q1 - q5 weapons at a massive loss now lol. So now, the government is draining them, and is in a conflict of interest because if they educate them, they make less money. A beautiful conflict of interest.
Just to be clear, I only speak for myself. I'm not in Congress this month and don't belong to a party. That said, I wouldn't be surprised if I hit on the same logic that others have.
Also, it's not like we have much say as far as prices are concerned anyways. With one global currency and cheap tickets to travel to markets where the exact same goods are on sale for lower prices, there's already a tremendous amount of pressure from outsiders.
If not for a low import tax, sooner or later someone else would have travelled abroad and bought a lot of food or Q7 weapons and come back to Canada to sell them for slightly more. In fact, by and large, I don't think there's been much extra downward pressure applied to our prices - the one exception I can see is Q7 weapons.
"I thought WAM would have died when everyone was worried about the added EXP to their rank."
I've so far avoided making an article about this, mostly because it's not that big of a deal to me anymore. All people care to do is bitch and get all they can (Of fake shit? REALLY!?). If I did care to make an article, your quote would be my first point. I can't believe no one's mentioned it yet.
THE POOR LITTLE NOOBS THAT ARE SUFFERING SHOULDN'T BE F'ING WAMING ANYHOW!! It's far more likely that the people who are so valiantly speaking for the precious n00blets are actually more concerned about their own pockets.
My second point would be that the n00b that does a lot of WaMing has spent gold that came from somewhere. The game only give so much before the easy missions dry up. Unless he/she upgraded their Training Grounds they will have no source of Gold to buy Companies to WaM other that Gold they purchase. If they are buying Gold I don't feel the least bit sorry for them. I bought Gold, built communes for myself and helped MU mates build theirs. I've bought thousands (if not 10's of thousands) of x2 EBs. Don't believe me? Go look at my TP damage.
Nope, I'm not sorry for the n00b one bit. If they are playing the game right they are holed up in a good MU getting instruction and help. If they are buying gold good for them, they can pitch in.
F*&% Dill, get the hell over yourself - it's not all about you and all the things you've done, want to do and/or are sore about what you didn't get to - for a guy that used to bring a positive vibe to the game, you've really turned things around
Somebody has to speak for the noobs, especially if you want Canada to grow.
I am not here to "line my pockets as that is an absurd notion. I run businesses to reinvest in stuff to make my character a better fighter and occasionally donate stuff to fellow MU members. Better weapons, and strength training.
Thanks to government intervention, it forced me to reexamine the businesses I run. Now am running more efficiently, have the taxes paid almost back down to what I was paying before, consume less food, and can do my daily orders in one shot rather than have to wait until the middle of the day to reenergize to do it. I guess I owe them my thanks
J. I am "over myself", I'm not here to impress you or make you like me. I'm not here to make people feel good. I enjoyed playing as long as there was something to play for (and before you cause me to believe that you're conceited don't assume I speak of Canada, I'm talking about the whole damn enchilada). If it bothers you so much that I use myself as an example please go look at Rylde's profile, Connor's, Gobba's, Goran's, Tembutt's, gbr's, Et al. I believe that I'm not the only one that ever did anything for Canada.
I'm not asking for anyone to kiss our gold buying asses. I only point out to glaring facts that both of you totally ignore so that you can fling shit in the air because I said I did something in the past. Used my deeds as an example only, but that is the focus of your rebut, deflecting from the fact that my point is the N00BS SHOULDN'T EVEN HAVE A BUNCH OF RM'S TO WAM YET. That's OK though, this is a game and you're having fun putting me down. Let's kick thedillpickl a few more times and maybe he'll leave us alone. Keep kicking, you don't want me to come back to Canada when I'm done with fyrom? That's fine. I'll find some other place to roost.
Actually, to the grinch I would say to reconsider how we can help the n00bs grow. Is it more important for them to build more and more RM farms so that the econ will keep over producing forever? Maybe it's a good idea to look at how the big boys do it by teamwork in their MUs. Look to Serbia as an example. They take their new guys straight into the MUs. Their WT is only 4% but their economy is HUGE compared to ours. 150k cc is a lot more than our 9k at 5%. They also have MANY gold buyers to fiance war.
Yes the new people do need to learn. The government is not doing its job quite frankly. The politicians are more interested in their party or doing stupid PTO's of irrelevant ones and pissing people off and ruining some of their fun rather than focussing on growth.
And some noobs want to come in and be business owners. And now, the government and this work tax has screwed that up too.
Actually I agree with what you're saying, that's one reason why I'm no longer interested in politics. However I don't understand why a new player would want to start out by building a RM farm. If all they want to do is login, click work and leave they have spent 5 minutes of their day wasting time. Better to ponder what's outside their office window or if at home get a cup of coffee or tea. Scratch their dog/cat's belly. There has to be something more worthwhile than clicking clicks just for the sake of doing it.
Now if they actually wanted to participate in the game they should find the good MU, save gold to upgrade their Training Grounds, fight only their DO to earn those EB's and save the XP's so their Strength grows faster than their level. At least that way they are working toward a goal. Seems boring to me but according to admin this is a super fun game, so what do I know? lol
Now don't take this the wrong way, but it isn't up to you or I to tell someone what they should be interested in.
When I first joined I had very little interest in fighting. I was more into the spook CSIS stuff and black marketeering. It didn't make a lot of money or get much glory but damn it was fun. I was draining Pheonix countries of their cheap weapons so that their noobs couldn't afford them and funneling them to brucks canucks when we were freeing North America, while doing economic warfare against Indonesia, tracking down spies in Canada and rooting out clone farms. Boring to most, fun for me. Now it is business. I like the challenge of getting to q7. I like the challenge of figuring out ways to make money. And I do this all to the end goalk of being able to do massive strength training.
For the noobs, if they want to get into business sure they shouldn't just do wrm farms, and now that is basically impossible with this stupid work tax. But forcing them to just be market buyers if they want to be market sellers is counter intuitive.
At the risk of offending anyone by relating my experiences in the game... When I started playing I didn't care about politics and fighting, TBH, was too complicated. I eventually joined the Training Corp (US) of their old JCS Military. My heart wasn't in it and just as I graduated I decided not to advance. I threw all my efforts into the econ. Back then there were all sorts of possibilities if you were smart and understood how crap worked. Didn't hurt to make friends and share secret tricks.
No WaMing then, I had 65 employees and 2 food factories. I had a ball helping those that were willing to build their own corporations. Almost all of what I built then was from what the game gave me. I didn't really need to buy any gold until admin f'ed up the econ.
It would be great to see those days again but I guarantee you that won't happen. Admin has made it perfectly clear that strategy has nothing to do with eRep. For that reason I can only see a limited number of choices for a new player. Join a competent MU to work towards being a fighter, build a RM farm and perhaps one day have a Q2 food factory, get into politics and ignore the game mechanics. I suppose one could write articles but without actually playing the game what would you write about?
To reiterate what I've said when this all started, drop WT to 1% for all I care. Just don't bitch when there are no wars and no MPP battles. Canada can become an agricultural society. Of course you should remember that we have neighbors that may like our resource bonuses. Without fighters to defend Canada is easy pickin's.
The trick is to balance everything. Canada is filled with extremists.
I cut back large. Here are the numbers for my q2 food production
Making my own q2 food and supplying my own FRM from q1 frm factories:
Raw material cost:
3.65 + 3.65 to produce 500 frm (so 100 to spare, no cost production of q2 food every 4th day)
Q2 food production cost: 3.65
Total health cost: 30 health which requires 8 q2 to recover at a cost of .11 per = .88
Total cost: 3.65*3 + .88 = 11.83
Paying market rate:
Buy raw .02@400 frm = 8.00
q2 food production cost: 3.65
health cost: 10 health = 3 q2 food @ .11 = .33
total cost: 11.98
I buy bulk FRM frequently at .01 on the market
Buy raw .01@400 frm = 4.00
q2 food production cost = 3.65
health cost 10 health = 3 q2 food@ .11 = .33
Total cost: $7.98
I am now no longer producing my own FRM, so a cutback in production of almost 40%, and if product is sitting in the market for too long, I can cut back on q2 food production until it is sold.
So overall not a huge difference but now by cutting back I can spend that health I would otherwise spend on fighting to get my DO out of the way for the day. Now people may say oh 20 health isn't much and that is true if I was only producing 1 q2 food company. I am not.
Yeah, I was just automatically clicking up until today but decided not to WAM for a while as it was starting to eat up my cash and I've got enough inventory to last quite a while
Once you do the math, it makes it pretty easy to justfy closing down stuff. I will probably never have to run the frm companies again unless it goes above .03 and now have a nice cushion to be able to absorb major price movements.
The thing that sucks is it takes so long to sell stuff on the market, sometimes over a week. Hard to watch your cash disappear while making no income from the products.
That's some great math there, the grinch! Too bad we didn't have the math ahead of time.
Here are the numbers for FRM at $0.02 (current market price) and, after the slash, $0.01 (lowest available price) assuming a work tax of $3.65, an average cost of $0.27 for food recovery (I took away the VAT that you wouldn't pay on food you produced yourself and rounded down to the nearest whole cent) and the current 100% bonus we have.
Q1: -$2.52 / -$3.22
Q2: -$1.12 / -$2.52
Q3: $1.08 / -$1.42
Q4: $3.08 / -$0.42
Q5: $6.08 / $1.08
That means that at our current rates when FRM is available at $0.01 cent it only makes sense to keep WAMing if you have Q5 FRM companies. But if you never see FRM on sale for cheap (I rarely do but I also rarely look - I do buy WRM though and rarely have any luck) then you're making a slim profit even with a Q3 company.
Here are the numbers for WRM. We only have a 60% here but prices are slightly higher at $0.03 per WRM normally, going down to $0.02 when people are in a hurry to sell off large quantities.
Q1: -$2.24 / -$2.80
Q2: -$0.56 / -$1.68
Q3: $2.08 / $0.08
Q4: $4.48 / $1.68
Q5: $8.08 / $4.08
What a difference a cent makes! Technically you're still better off WAMing your own WRM when prices are at $0.02 even at Q3 but 8 cents is hardly anything to write home about. And as it has been pointed out, you'll also be getting extra XP so it may not be worth it. I've always had poor luck with the divisions - I think I was bumped down to Div. 3 for about a month in the last reshuffling - so XP's not something I personally worry about but then again, I don't even have a Q3 company so it's a moot point.
Yeah it is amazing what a impact a cent makes. Now when someone has to sell their frm at .01 to sell it, the government mnade more on it than they did lol. Talk about a racket.
Chochi, one of theissues I have is that the math was available to congress if they had used common sense. All they had to do was look at the current work tax they were paying on their companies, double the tax then look at the impact on the market and producers. They didn't all they did was look at the bottom line. Now combine what you know there, with the low import taxes, capital flight, company shut downs, noobs selling q1-q5 weapons at a massive loss and tell me that Canada will be better off. I can't see how it will be in the longer term.
As for your analysis of WRM at .02, that depends on timing. If you can get it, great if you can't you can't. I just scored a major buy on both WRM and FRM, so now will be shutting down all of my q1 WRM factories as of tomorrow.
Yawn! And the cycle continues!
Well, you might as well get some free q7 tanks
http://www.erepublik.com/en/article/a-new-challenge-1-2539004/1/20
I prefer the pie graph for obvious reasons.
Because it may contain graphic content?
You like pie AND cake graph.
http://www.erepublik.com/en/article/laugher-curves-and-the-new-tax-rates-2539894/1/20
Laffer or laughter? I need to know now before I click the link!