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The Economist ~ All's fair in love and taxes

Day 1,966, 15:46 Published in United Kingdom Poland by Iain Keers


Dear friends,



A few months ago I proposed an experiment in UK tax policy. In fact it’s an experiment I have been advocating on and off for years now- promotion of free market economics within the UK. Low taxes do not necessarily mean low income under any circumstances. Low taxes increase both flow of goods and investment, which in turn makes for surpluses, low prices and exports. All things which are good for the UK.


Since the tax changes were approved by a cross party group including congressmen from UKPP, New Era, TUP and the minor parties we have seen no appreciable loss of income. In fact this is because our income, and that of every other country, is so small it makes no difference. The major spenders in the game now are individuals, and a country is as strong as it’s soldiers, not it’s bank balance.


Part of the UK’s strategy (and that of every country) has been to diversify its income sources. Over the past six months Carlini, a major UK businessman, has guided the UK as it’s Minister of Finance. Carlini has always had a great understanding of the business side of the game. Through careful planning and a deep study of markets he made himself one of the UK’s richest men in record time. He also (despite major attempts to spend everything) kept the UK financially afloat that whole time.





One of the main factors in this was of course the Money Market. As a country with about sixty orgs and a few million currency kicking around, the UK was fairly well placed to generate income from the MM. As traders will know, over a ten day period the MM can make anything between 3-20% depending on how much is sold and what the margins are. When you have a few million cc, this is a lot of money.


It is absolutely essential then as a government that we continue to focus on this as our primary source of income. It produces by far the most amount of money with the smallest negative impact on our actual playerbase. Taxes are totally secondary to this, and no matter what changes we make at this point the effect on our overall income with a competent MoF should be negligible.


As such I propose reducing the UK VAT on weapons to 1% and our Import Taxes to 8%.


Despite having 10% import taxes for a long time, we still lack foreign competition on our markets, which means prices are often high compared to our neighbours. The extra tax from imports can earn us money, provided we can tempt people to buy licences. To do that we need to keep lowering our import tax until people actually come.





Finally I would like to comment that it’s the nature of taxes that they act as a tariff on everyone but the government. For example, if VAT was 30%, the government could sell things 30% cheaper than everyone else, knowing the difference in tax is effectively going back into their pocket. As a result it’s pretty reprehensible for the government to undercut the private sector, since they’re taking advantage of taxes to rob their own citizens. I strongly oppose that sort of behaviour, and would like to reiterate that the small gains made by using this method (as opposed to the MM) are not worth sabotaging our own citizens income over. If people must use economic warfare tactics like that, use it against enemy nations!


Iain





Ps. Talon (who is now SG, wd Talon) and I are going to do a quick podcast soon just covering a few issues domestically and internationally. I'll publish the link when it's up, probably just be a youtubed convo between us lasting maybe 20 minutes or so. Cheers.
 

Comments

Manuel III El Exiliado
Manuel III El Exiliado Day 1,966, 15:50

ñax

Sambo112
Sambo112 Day 1,966, 15:50

voted, great article as always keers

alan warwickshire
alan warwickshire Day 1,966, 15:54

I suppose reducing import taxes a little may make it cheaper for u to buy weps, without affecting us too much to sell to each other

Jamie2721
Jamie2721 Day 1,966, 16:02

Agreed, something i always argued for but hats off to you for actually making it happen

WayneKerr
WayneKerr Day 1,966, 16:05

Should have listened to Wayne months ago...

Alphabethis
Alphabethis Day 1,967, 14:15

hhaahaha, lol, I was the one proposing low import taxes.

WayneKerr
WayneKerr Day 1,967, 14:20

VAT... Import tax won't make a blind bit of difference unless you can persuade people to buy a licence... All it's doing until that point is letting ex-eUKers or the handful of oldfag forigs to make a bit extra.

Jimbojoy
Jimbojoy Day 1,966, 16:32

Supported Fully. You can expect to see it raised for congress to discuss.

Sir Humphrey Appleby
Sir Humphrey Appleby Day 1,966, 17:21

*gives a slight nod*

cc1432
cc1432 Day 1,966, 17:51

it's time for the country to get what it's rightfully its. All taxes MAX! real politique : D

Dishmcds
Dishmcds Day 1,966, 19:02

Welcome to the right.....it's where you belong anyway. : P

Lysander Spooner II
Lysander Spooner II Day 1,967, 00:47

The right-left political spectrum is outdated an irrelevant. Look at Milton Friedman who believes that a free market would include presently illicit drugs.
Check out Defending the Undefendable by Walter Block. There are personal freedoms and economic freedoms. The left you refer to covers those who believe in personal freedoms, but not economic freedoms, while the right covers those who believe in economic freedoms but not personal freedoms. What about those who believe in both personal and economic freedoms? What about those who believe in neither? They aren't exactly covered by this left-right spectrum you refer to.

Jamie2721
Jamie2721 Day 1,967, 01:01

real conservatives believe in both. Get the government out of your life, isn't that meant to be the conservative position?

Lysander Spooner II
Lysander Spooner II Day 1,967, 01:29

They used to call that the "Liberal" position, until it was co-opted by those that now call themselves "Progressives". Now, it is called "Classical Liberal".

GameChanger
GameChanger Day 1,967, 13:22

I'm a liberal IRL, but ingame, these policies make sense. I don't see why we should stick with our RL beliefs if the game mechanics and situation are different than RL economic situations and abilities.

Rican
Rican Day 1,967, 00:35

voted & thank you

Lysander Spooner II
Lysander Spooner II Day 1,967, 00:41

Wow! Somebody else who believes in free market economics. I'm a student of the Austrian school, myself. If you have yet to, check out mises.org

Have you written anything in the past about how countries can take advantage of the MM to generate income?

v&s

GregoryG
GregoryG Day 1,967, 00:47

podcast

podcast \o/

Silver Tfe
Silver Tfe Day 1,967, 01:18

Good article. v&s

mcmoox
mcmoox Day 1,967, 01:27

MCMOOX je bio ovde!!!

Zubrei
Zubrei Day 1,967, 01:37

I'm not sure reducing competition and lowering prices is a good thing.

At present the WRM is selling at 0.03 in most major markets (Croatia, Serbia, Poland, China, USA). With our limited resources of 60% that means we would have to sell q7 guns at 6.32 (before 5% tax), this would leave us no room to pay employees or make a profit. Current prices are at 6.56 and are dropping day on day, this leaves 3.84 to pay employees and profit.

By increasing competition from countries with 100% bonus, this will lower prices further (simple supply and demand) and make it impossible to employ new players, and tilt the game further in favour of the older players who can afford to compete.

Nohjis
Nohjis Day 1,968, 05:37

The only way to make any decent profits (even in the big markets with 100% bonus) is to assume you can buy or produce raw materials at 0.02. It's work to watch the market, but even in Poland salesprices of 6.01 CC doesn't cover the wage costs when you consider raws are priced at 0.03.

Danie Fox
Danie Fox Day 1,967, 03:10

If you own Q7 companies then you are a rich player and don't need help making more money. Lower import taxes and help the rest of us afford to buy them.

WayneKerr
WayneKerr Day 1,967, 04:49

I own a Q7... I'm far from rich... I can't even afford to feed it!

Danie Fox
Danie Fox Day 1,967, 04:54

They cost over 600 gold to produce, even if you only upgrade when the offers are on.

WayneKerr
WayneKerr Day 1,967, 05:02

and that's what I did, as well as purchasing gold in offers and using gold gained from playing the MM and BH/medals. To claim that every player with a Q7 is rich is incorrect...

IfIWereARichMan
IfIWereARichMan Day 1,967, 05:28

You might have been rich before you got your Q7, but not after having bought the darned thing.

Chochi
Chochi Day 1,967, 05:36

Objectively speaking, anyone who owns a Q7 is rich. You may not have much money or gold on hand but you have a company that cost 681 gold and which can be dissolved for 615 gold. That is an amount of gold that most players can only dream of having and is pretty much unobtainable to new players now without them buying gold with real life money. Just because it's not making you more money, doesn't mean you're poor.

WayneKerr
WayneKerr Day 1,967, 05:49

Im sure if most players dissolved there companies they would have a tidy little sum. My worth overall is 159758cc (excluding TG). I wouldn't call that rich.

Chochi
Chochi Day 1,967, 08:13

I guess we have different definitions of rich. I would certainly count anything over 150k as rich, even above 100k. My net worth is only around 75k and I consider myself pretty well off. I eat well, fight using only Q7 weapons and use my three cheapest training grounds at Q4.

Now being rich enough to be able to make enough gold to train with that last one is pretty much impossible and pretty much useless - you're better off just using the gold you'd need to invest to train instead.

If that's your definition of rich (it's my definition of uber-rich or credit care player) you may want to consider just dissolving your Q7 and using the gold to train for the next 20 months or so. Up to you whether you think that's a worthwhile trade off.

Iain Keers
Iain Keers Day 1,967, 10:02

Anything less than a million cc is not rich

Chochi
Chochi Day 1,967, 15:49

Lol, if you say so. There's obviously no cut and dry definition but that seems like a rather narrow definition. I'd be surprised if even 1% of players have the equivalent of 4,350 gold.

I honestly don't know why anyone would even want that much money unless you were to spend all day buying health packs. I guess you'd have to - at current prices prices, just living a normal life to the fullest with the best food, weapons, rockets and training, 4,350 gold would last for two years.

You don't think having enough cash on hand to live the richest non-health pack buying lifestyle is enough to qualify as elite status?

Leo Balzac
Leo Balzac Day 1,968, 13:42

I'm happy to see that half of your wealth is traceable directly to me Wayne, you poor sonofabitch.

cc1432
cc1432 Day 1,967, 06:50

hmm yea right ). q7 hardly make any profit. You get 4 - 6 CC per company after you deduct the wrm price, One is better of with tons of q5 raws 10-15 cc easy... / company.

Chochi
Chochi Day 1,967, 08:23

At 15 cc profit a day, a Q5 has a return on investment of 539 days at $230/gold. If you're still planning on being around for that long/think the game will still be here than by all means go for it (well, maybe consider Q3s first). Alternatively, you may just want to use that gold for training rather than waiting/building the other 14 minimum you'd need.

That's a minimum: if you're in a country with fewer bonus regions then your daily profit will be lower and the amount of companies you'd need would be higher. That max you'd need (at current gold prices) is 30 Q5s which would set you back 1050 gold. That's just about 35 months to see a return on investment (or to be training with that same gold). Nearly 3 years is a long, long time for an investment.

Shiina Sayane
Shiina Sayane Day 1,967, 08:54

Yes,q7 company sadly useless and regret the gold I wasted on it.Q5 raws not only means more profit but they are lot easier to manage too.Although I have to agree with Chochi thats better to using that gold for full training rather than invest which very risky considering how long need to one wait to get profit.....One change could wreck it,not to mention not impossible that raw prices will fall even lower.Seeking the past the safest investment is strenght.

cc1432
cc1432 Day 1,967, 10:39

yea well full train q4 is a must in this game, otherwise one might just leave the game and never return... but companies are still needed in order to generate around 0.4g / day which is the cost if u use 90% contracts. And no to mention one has to fight as well , and maybe 1-2 guerrilla, so the daily upkeep goes up...

mick cain
mick cain Day 1,968, 11:09

I own a Q7 and a Q6 weapons.I produce enough WRM's for me to work in both of these and for my 5 employees to work in the Q6.However i sell everything i own in order to supply WRM's for the Royal Naval job scheme.A reduction in the price of weapons would seriously undermine this scheme.

Iain Keers
Iain Keers Day 1,967, 03:18

I'm a q7 owner. Not worried.

Zubrei
Zubrei Day 1,967, 03:44

Yes you are a rich player with a Q7, but you need to make sure that there isn't a huge gap between rich and poor or old and new (they are intrinsically the same thing)

cc1432
cc1432 Day 1,967, 06:53

Q7 is the worse investment atm at least concerning weapons. Not sure about food but there is decent. The only way Q7 wep will be back is if they remove hits from weapons / meaning 1 hit 1 wep used. That would be a game changer indeed

Iain Keers
Iain Keers Day 1,967, 09:54

There is a big gap, reducing VAT just reduces the cost to consumers like you, not to me. Not that it makes any difference.

Viridi Day 1,967, 05:35

Comment deleted

BigAnt
BigAnt Day 1,967, 12:24

Income has dropped

Alphabethis
Alphabethis Day 1,967, 13:10

keers is 8 months late, I was proposing all this long , long ago.

alexg737
alexg737 Day 1,967, 13:49

I remember Talon mass PMing me to keep VAT prices high, back in November. Why the change of heart?

Danie Fox
Danie Fox Day 1,967, 15:02

Different person, different heart?

alexg737
alexg737 Day 1,967, 15:13

Ps. Talon (who is now SG, wd Talon) and I are going to do a quick podcast soon just covering a few issues domestically and internationally. I'll publish the link when it's up, probably just be a youtubed convo between us lasting maybe 20 minutes or so. Cheers.

Iain Keers
Iain Keers Day 1,967, 16:22

We are two different people believe it or not, and I have been advocating this since before Talon, you or the UKPP was ever born.

WayneKerr
WayneKerr Day 1,967, 17:33

tbf Keers, you've slammed it down for nigh on a year...

 
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