Negative effects of raising taxes

Day 700, 11:02 Published in Indonesia Indonesia by garairem

As you all know the congress of Indonesia decided to raise the taxes. The members of the congress raised the income taxes from 10% to 15%, and raised the VAT for all manufacturing and construction products from 1% to 20%! In this article i wan't to show you that it can have imennse negative effects.

Let's start with a simple question: Why does the state need so much money at all? In other leading countries these taxes are much lover:
Hungary
USA
Romania
Russia
Serbia
Polland
Spain
Croatia

If these counties can manage their budget with low taxes, Indonesia why don't? There aren't serious battles, any imprtant regions have DS and hospital, there aren't big foundations with big money need, and there isn't a big threat. So far we didn't got a proper explanation why this raise necessary was. In other countries it is a costum, that the administration publishes its budget from time to time. In Indonesia why don't? Do you have something to hide? The payments are down at the moment, and with a higer income tax people are getting even less, not to mention that they can buy less because of the high VAT. This isn't good for nobody. For a couple of months ago Indonesia was a very tempting country. High sallaries, constant war, and cheap products. Many imigrants came here because of that, and (i don't have exact numbers, but) i think a big percentage of the eIndonesians aren't IRL Indonesian. Because of the training wars, nowdays you can fight from almost everywhere, and many countries are offering higher sallaries, and cheaper products. There is a danger that these people are going to leave now, and a couple of Indonesians can try his luck elsewhere too. If this happens Indonesia can find him soon out of the leauge of the eWorls leading countries. But if this was the main goal of the hig taxes, then concider my fears void. I think the raise of the taxes wasn't thought through well. The fact of raising the minimum wage to 5 IDR confirmes this. Because of the high min. wage there were days, without job offers on the market for skill 0. This is a" very good way" for keeping new players. The congress realised its mistake and fortunately they changed the minimum wage, and it isn't late to realise that the high taxes are a mistake as well.
There is a massive overproduction on the market, and the consumption has to be increased, not reduced. If the goal was to reduce the production, i think it wont work, because new companies will come instead of the old ones, which went broke.
Not to mention, that high prises increase black market trade, which isn't the safest way to get the goods, and the state doesn't have a profit from it. Already many citizen moved their organisations to another coutries, to buy cheap products from there, instead of spending their money in Indonesia. These citizen produce here, but buy from other markets, you do the math (overproduction).

I made some calculations to prove my point. High taxes can effect many thing, among other the millitary development of the Indonesian citizen, and the damage of the country. I choose this for illustration, because it is very spectacular.

If we take an average citizen, with 5 manu skill, 8 strength and colonel rang. The best job offer for this citzen pays 11 IDR. If we assume, that this citizen works 30 days in a month, with the HW medal he earns 498 IDR (330 IDR and the 5 gold). (The golds for other medals, and for next levels are for reserve in my example)

With the old taxes (1%VAT and 10%income) he pays 33 IDR for income tax. If he buys q2 food, he pays for it 33,63 IDR(0,33 IDR tax) in a month. After this an amount of 430,8 IDR is available for him. He can buy from this amount 143 q1 weapon, this is almost 5 weapon a day. After the weapons he pays 4,26 IDR tax. With an average damage of 340 a day, he can do 10200 in a month. From 498 IDR he pays in total 36,6 IDR tax.

With the new taxes (15% income, 20 % VAT)he pays 49,5 IDR income tax. 39,9 IDR for q2 food (6,66 IDR tax), and he can buy weapons from 408 IDR. 408 IDR is good for 114 q1 weapon, and he pays 68,5 IDR tax. 4 q1 weapons a day are only good for a maximum of 9150 damage in a month, if he uses the weapon wisely. In total he pays 124,68 IDR tax in a month, almost 1/4 of his income.

In total he pays 87 IDR more tax, and can do 1050 damage less. He will develop slower, and will get FM significantly later. While during this time E/F members buy cheap products and evolve faster. If we calculate 7000 active player in Indonesia, it can mean 7 million damage less for the country in a month, with this kind of damage you can win epic battles easy. You can say now, with big taxes, there will be more money for tanking, and the damage will be equal. Maybe, but, the old players with 15+ strength, and over 200000 damage (tanks) won't develop with fighting, but the player with coloner rang can. And not only these 100 "elite" players are fighting in the battles, play the game, but the other 6900 too.

I don't say that the old taxes were good, and maybe it was time to raise, but not this high. Please member of the congress, reconsider your decision!

If you agree with me please vote, and feel free to comment!

garairem
P.S. Sorry for my not so good english.