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!
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.
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