The Bridge to V2 Tax Compromise

Day 830, 16:47 • Published in USA USA • by Joe DaSmoe


Well, we have another term of Congress before us. My hope is to work toward improving the status of our economy with tax changes. Here is what I'm proposing on Capitol Hill. Fellow Senators, this thread is located here: http://eusforum.com/index.php/topic,20004.0.html

FG=finished goods (manufacturing)
RM=raw materials
VAT=value added tax (sales tax)

Here is my "compromise"

Income tax: raise to 22% in every sector
Import tax: raise to 5% for finished goods, 15% for Raw materials (excluding diamonds)
VAT: lower the sales tax to 1% across the board

22%-5%-1% on all FG

22%-15% on RM's excluding diamonds

WHY JOE, WHY?

Income Tax-

The raise will supplement funding, and is purely a compromise on my part. Some worry that lowering the VAT will reduce funding, this will supplement that effect, if it even occurs.

Import tax-

The raise will ease the strain on our markets due to foreign dumping, while remaining at low enough levels to still allow imports in, especially with the peg drifting toward .025. We will at least get a bump in revenue from foreign companies.

Raising the import on raw materials to 15% will presumably remove foreign sellers from our RM market. This is needed and will lead to the US becoming a global exporter of RM's, again taking the peg being lowered into account.

These figures are compromises as well, as I would prefer protecting the RM market completely (99😵 and guard FG's with 10%.

Value added tax (VAT)-

The lowering of the VAT will ease the strain on domestic companies a bit by allowing them to retain the tax currently being paid toward their bottom line. Coupled with the slight import raise, this should spur wage competition and allow Americans to stay in business, improving our economy.

The secondary effect of this idea would be that the US would then have the lowest sales tax and extremely cheap goods which could/should lead to black market buying on our markets in significant amounts, further improving the economy by boosting sales, while allowing us to reap the benefits of dramatically improved sales through the tax collected.

Taxes affect everyone


We need to realize that our decisions and dogmas regarding tax policies affect everyone, not just the government and the military. When people see they can make more money abroad, they leave for higher wages, quit the game, or give up on being productive citizen and hoard what little money they make. This kills our retention rates and revenue stream.

When we allow foreign companies to kill our domestic markets, we kill our wages. It is true that lower prices are good don't get me wrong, but allowing American companies to compete better will allow for wages to rise as they compete for workers. As it has been stated a million times, we have more than enough companies to supply ourselves. The simple fact that we have more than enough will keep prices low due to the domestic competition we have.

All of these factors/issues lead back to the morale of our people, the retention of our higher level players, and the success rate of our new citizens. A sustained population far outweighs the dogmas of the past, retention and morale trumps all.


I would like to have a discussion on this, preferably one where people just don't drop one liners in here and dismiss the problem outright.

So please, state your opinions.
Thank you for your time,
Joe DaSmoe, Senator of Illinois

The text above is exactly what I have put before our Senators on the hidden Congress boards on the US forum. I am posting this in the media as well, I hope to gather feedback from our citizens and keep them in the loop. Myself and others are trying to give our economy a shot in the arm, we are going to need public support.