Opening the Economy

Day 779, 17:50 • Published in South Korea Spain • by Calangao

Most of the current citizens of South Korea should have already noticed that several tax changes were proposed. Not all of them following the plan we had to open our economy, so I decided to make public what is the tax plan we intend to adopt until the next congress is elected.

Taxes for manufacturing and construction sectors: 20% income, 20% import and 10% VAT.
Taxes for grain: 20% income and 20% import.
Taxes for other raw materials: keep at 0%.

There is no reason to impose import taxes on raw materials this country does not have. It will only make more difficult for companies other than food to flourish. The official recommendation for the congressmen is to vote no on all proposals that are not in this pattern. There will be new proposals for weapons and food tomorrow to fix the mistake of the ones proposed today.

Besides that, minimum salary will go down to 1 KRW, the minimum possible, so that the market will completely determine the entry salary from now on. For managers, you can all cut salaries by 37.5% once those taxes are approved without causing any nominal losses to your employees. Prices will fall immediately 26.67% for the consumers with the new VAT taxes. Market forces will force some prices up, but you should still expect net gains for consumers. This should give private entrepreneurs the opportunity to start new companies and absorb the new citizens. Also those willing to move to South Korea but not willing to work for theocratic companies will not have to wait until the next elections to do so.

My recommendation for new salaries in theocratic companies when the new taxes are approved is (skill+1)×3.2 KRW until the plan announced in the article "Theocracy is changing" is put in practice. This 36% decrease would actually have almost no impact on your nominal net earnings. The final decision will not be mine tho.