Reason for New Taxes
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by exReality
Why we have higher taxes.
Easy to read version for those who have trouble understanding.
1. People buying stuff abroad and selling them here for a profit. It was almost at the level of extorting citizens with ridiculous prices because our import taxes protect domestic businesses. This makes those transactions a bit less profitable.
2. E.L.I.A.S the new vmoe is keeping track of our revenues. He found our 1% tax revenues were making 8-9k a day at best, while our new tax levels are raking in 40-50k yen a day. One person in particular should love this, especially when all his programs are handing out money for virtually nothing.
3. Our bank pales in comparisons to other small countries. Tax rates are also harsher than Japan's.
-Republic of Taiwan has 25% VAT and 1% import tax.
-Austria with 10% Income/VAT and 30% import tax.
-Singapore with 20% income/15% VAT and 30% import tax.
-India with 1% Income/import and 20% import tax.
The point I'm making here, is that Japan's tax rate is miniscule compared to other countries. Furthermore our high import tax protects so many domestic businesses, that they should be the last ones complaining about the high tax rates. We could have easily lowered the import tax in addition to raising the VAT, which could have brought in more $$$ assuming people would import here. The income tax also stayed the same to protect the citizens whose main income is derived from working.
4. With more revenue, we can fund more MUs, do more cool things etc. Really simple idea.
Prices can remaining the same as other countries if our businessman choose to earn less money. The reason for high prices now has nothing to do with the higher taxes, rather businessmen continue to wish to maintain the high profits they were earning before. Even if I BOUGHT BREAD FROM USA for 2.2 yen and resold it here, I would still be selling it here with a profit since our lowest price is 2.5 yen.
Also the fact that it requires donations to lower prices is a joke. I can easily lower my prices to 2.17 jpy a bread and still maintain a decent profit. This is a stupid political ploy.
Current raw mat prices for food
.13 jpy per 1 raw mat
151 jpy highest wage on market
.13 * 700 (raw mat required) = 91 jpy + 151 jpy = 242 jpy
q5 food produced = 140
242/140 = 1.728jpy = break even point selling price assuming no taxes
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pertamax
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Exvoted.
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i dont know if bot is active in japan but if so:
why high VAT
if (local businesses or) foreigners sell stuff in japan the bot pays the VAT which is added to the finances of the state
why high import-tax
well the same as above bot pays the import-tax but it wont be added to the finances of the state
so why high import-tax? because so the local sellers wont be in competition with the foreign-importers
if prices are low you sell to bot and bot will pay tax (wich every businessman can add to selling-price),
if prices are high you get enough money to pay the tax yourself
afaik bot hasn't been active in Japan for a while. last I remember it being active was around a little bit before the currency changes.
hm i think the prices are normal
differences are on prices a little (on jobmarket huge) because of bonus-differences
especially in comparison to full-boni-USA
if you buy for 2.2 in the US and sell in japan for 2.25 netto then thats not that much profit...
i buy and sell raw en masse with profit from 0.02 to 0.03 per unit... so 0.05cc for q5 food is nothing
problem are the low job-offers not the high prices for products i think
you have to note that in the USA they produce 200units food with one worker and sell for 2.2 with very low taxes
in comparison to that the offer of a production of 140units for nearly the same price i cheap
the breaking point is 1.728jpy for japan and that's not really debatable. for usa the breaking point is def lower because they will be producing more bc of bonus. that's the point of buying and reselling. usa can produce it for even cheaper, therefore selling japan for higher prices is profitable.
also not sure what this has to do with the higher vat.
so whats the point
-if you lower US and japan-prices its the same but on a lower scale
"usa can produce it for even cheaper"
q5 food (without tax)
raw/quality/bonus/salary/units = cost per unit
(0.13 x 5 x 140 + 150)/140 = 1.72cc in japan
(0.13 x 5 x 200 + 24😎/200 = 1.89cc in USA
production is actually cheaper in japan (even cheaper then in full-boni!!! USA) because of the very bad salaries in japan. so dont come with some cents difference in product-price as profit...
prices of products are modulated (difference between the countries) by tax and a bit by boni thats in the range of some cents per unit
profit is made by lowering the salary in the low boni countries (+low tax on income)
whereas high boni countries have high salaries (+high tax)
japan has mid-boni but very low salary and that is where the profit is made. with these salaries they could actually sell cheaper than the companies in the USA! (see my comment above)
okay thanks for your input.
but
1. buying products from usa doesn't mean you gain the same costs.
when you buy off the market you're buying the product as is.
i.e if i buy bread from usa for 2.2 cc, it costs 2.2 cc for me to purchase it. it may be more expensive for them to produce it but it will still cost me 2.2 cc. with 1% VAT i can simply resell it here in japan for 2.5, and i will gain 0.3 jpy per transaction. not a very hard concept
2.5- 2.2 = 0.3
I can sell up to 1000 units in a day that's easily 300 jpy
this is not a very hard concept to understand.
with the new VAT, it reduces the profit to 0.02, so they will no longer be making as much. i.e cents difference. (This is one of the things vat was supposed to accomplish)
furthermore since it's cheaper to produce stuff in Japan prices bc of salary, it should be LOWER than USA's, by your own logic.
also wtf is with the characters left on this comment section, have to post so many times. cool updates erep.
its just i alone sell over 3600units of q5-food per day and cant see how that would work in japan. nobody except newbies need to buy food and you say there is no bot - so who would buy that quantity of food there?
+ 2.25cc netto per unit q5-food ~ bot-price (bot pays 2.28cc)
japan is nice for producers because of cheap workers but it isnt a very attractive market for sellers.
okay lets say i sold 200 a day that's 60 jpy in a month that's 1800 jpy.
and i agree it is not an attractive market for sellers.
yeah in my eyes the 10%VAT is good too
but even with the old 300cc profit/day in food japan is not that attractive.
in other countries the bot is active and is buying food for 2.28cc (netto) and ~45units per hour so you get higher profits this way and there you can sell raw too with 0.02-0.03cc profit per unit and ~220units per hour.
a licence for japan + the hope someone buys your stuff is not that nice...
sorry for commentspam but it was nice debating with you
~5am here so goodnight
good night to you too.
vote
One person in particular should love this, especially when all his programs are handing out money for virtually nothing.
voted
"Also the fact that it requires donations to lower prices is a joke. I can easily lower my prices to 2.17 jpy a bread and still maintain a decent profit. This is a stupid political ploy."
I will sell food for normal price to the bot to increase our incomes. Even I don't have profit on this transaction.
I don't think any other people makes as many VAT income for Japan as me!
But give cheap food for our members is different. Why should we pay taxes for donation?
Follow your logic, if you buy food at USA and sell it at Japan than it is also a tax evasion because you dont pays import tax!
im wondering about the low wages
it costs max 60cc to travel to the US or russia for example and with a job there you earn more than 200cc netto per day...
if the workers are willing to work for 150cc in japan then the VAT could be ~15-20% without the businesses making deficit...
I don't care if you don't pay taxes Geezus. What you do with your own stuff is your own problem.
@eisen
I am not sure why they do not move abroad and work for much higher wages. I'm assuming it's either because they work for friends here or they don't know.
I pay much more taxes than you exReality!
But if you don't use the japanese market or use foreign markets then it is not taxable.
"With more revenue, we can fund more MUs, do more cool things etc. Really simple idea."
Now we have over 800k at the treasury!
I will be happy if we will see the "Cool Things" first! I think after this we can talk about higher taxes!
As the leader of the top1 MU and top1 Party we never get any supply or donation!
Telling lies is much easier than doing something for others!
http://www.erepublik.com/en/article/higher-vat-not-for-nippons-part-2-2025017/1/20
I don't see how having the number 1 party or mu entitles you to a donation.
1. What would this money be used for?
2. Why do you need it?
Also plz point out a single lie in my article kthx.
I can also call you a liar. But without evidence that wouldn't mean anything.
You said I don't pay taxes and my cheap food program is "a stupid political ploy".
Do you still think that is true?
As Nr1 party leader and Nr1 MU leader I don't know anything where our money goes!
(That is why I told you we don't get any donation from treasury!)
No, I didn't say you don't pay taxes. I said I could care less if you don't pay taxes.>if
And yes I think your food program was a stupid political ploy. But since you're giving it out for free now I changed my mind.
Also our money goes to the national MU and nowhere else.
For everyone to note:
I opened a thread for the discussion of organization and funding of MUs on the forum.
A proper and well organized system for funding MUs is being developed. Right now, we are accepting ideas as to how our national MU system should be organized, supplied, and structured. ANY system will require taxes to operate it effectively.
I encourage everyone to register on the new forum and participate in its development.
http://nippon.freeforums.org/post439.html#p439
That said, the purpose for the establishment of a national state sponsored MU funding is for all eJapanese to get the supplies they need to fight and gain experience and rank. The money spent goes right back to the people, yielding direct benefit. This is also a non partisan effort, established by those voted into the congress by the people.