The Work Tax Explained
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by Wild Owl
As an individual I have always taken a keen interest and been heavily involved in educating newer citizens as well as old ones, to keep our community abreast with the developing game that is eRepublik. The following articles will outline some of the newest changes in eRepublik and will highlight their effects on us as individuals and as a Nation
The Work Tax
The Work Tax was introduced by admins as an alternative to income tax on Day 2089 of the New World. In essence, the Work Tax causes a company’s manager to pay a specific percentage of the average wage for each company worked as determined by the country’s Congress to its country treasury. The amount of money to be paid per click is constant, regardless of the level of the company.
eUSA currently has a 10% work tax, which is one of the highest in the New World. The high work tax was deemed necessary by our country’s Congress to replenish our reserves which were considerably depleted as we fought off occupation. Despite the high tax, running raw materials companies, regardless of type, for both food and weapons is profitable. Running all food companies as a manager is profitable, although weapons companies only become profitable after Q5. Here’s a cool tool that helps with ascertaining profits for companies: http://erepublikanalyzer.com/RentabilidadFabricacion.aspx
As with practically all other stuff, the work tax has been used as a weapon, particularly in smaller countries. Paying abnormally high wages to a few individuals to boost up the average wage, will cause the work tax to rise for all citizens and may make running companies unprofitable, which won’t be helped by the fact that most of the smaller countries have low bonuses. This has been attempted in the past in eCyprus with considerable success.
I hope you find this article useful and informative. I intend to write a few more like this one and if you have any suggestions feel free to let me know via the comments and it shall be covered.
Sincerely,
Wild Owl
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Credit to Mourning Star for proof reading this and being awesome.
\o/ Boated! \o/
Meow! ♥
/me tips his crown
Voted.
Voted, I also submit my own recently updated calculator which lets people test the effect of changing the tax rates, see how much of the earnings are taken as taxes, save information as excel files, isn't dependent on a server being online, a rating system for company cost-effectiveness, and many other features requested by the community:
Company Loss Calculator -
http://www.erepublik.com/en/article/2352033/1/20
\0/
ne guzel yazmışsın
voted o/
voted
We liberated the eUSA, why do we still have this high work tax ?
This article does not argue for or against the case of a high work tax. Its meant to be an educational one to explain the dynamics of the work tax, from a USA centric point of view.
I still call bs on this thing... its a double tax... I have to pay taxes to produce materials then I have to pay taxes on the same materials when I sell them... bogus... its simply the admins way of applying a band aid to fix the economic module (which it did NOT do) and force people to buy gold and convert it to USD to be self sufficient...
in real life, you taxed on your wages your taxed when you buy something your taxed if you sell something the compnay you work for is taxed. dividing the taxes makes each tax seem smaller and more managble and people are generally happier. if we had one large tax people would be upset!
Not entirely accurate. A person does pay taxes on the wages they earn, but the company does not pay taxes because they worked there to fabricate a product. If I own a business and work without pay, the taxes don't go to the government until the product is sold. Its a double tax, period.
ahh but your doing fraud! if you do it that way! you have to pay taxes on the increase in value of the business yearly! other wise its tax fraud! thats why there is realized return and unrealized return. and why banks have loan loss, they do not take the loss when it occurs offically, once they right the loan off, they write off part of the loan each year and pay taxes on part of the loan each year they made profit on,
so what you are describing is fraud and be careful if you go in to business with some one who has the same opinion as you you might get put in prison or farced to make monetary restitution!
If I went in to business with someone...oh wait, you're talking about the real worl...this is a game...bottom line is the admins found a way to tax us twice to try and force our hands in to buying gold... haven't done it, won't do it...period!
the tax is paid to the in game gov, and the in game gove uses the tax to fund wars! the admins get no benefit at all from the taxes! the admins get benefits when you use gold or money to move or build businessses! so if your really aginst the admins you would destroy your businesses! and only work as an employee!
I know where the taxes go, but that still doesn't make it right when they nerf the game and make stupid changes like the work tax... The admins DO indeed capitalize on the taxes. See, there WERE those of us who were able to be self-sustaining back before this work tax was implemented. Now, unless you want to employ people and work the market, you can no longer simply work for yourself to supply yourself with food and weapons...In order to do so, you need cash, and there are only 3 ways to get said cash...1) Sell products on the market; 2) Earn a wage from another employer; 3) BUY GOLD and convert it to cash. How can you say the admins don't benefit from the work tax?!?!
By the way, I love having debates like this over money...LOL
alright i will uscceed, i as hoping that with the work tax the usa military wqould fund CO's to help people become sustainable even with tax! but your right, the new tax forces people to produce more than they use to pay the tax, which will drive prices down unless the gov is activily spending. which our current pres is a high tax no spendign pres which dissapoints me severly!!!
but yeah i see your point, no way to stay in your own privite self. no way to be sustainable, need people to buy gold or the economy grinds to a halt! so i do see it! still i like it you will be forced to sell products and buy gold making it much more benefical for those who use irl money to buy gold and then buy products! so yaeh this game is changing to be more favorable to gold buyers! it is no longer like you say really feasable to stay self sustaining without buying gold! but it is sorta dooable.
like me becommign party president! ha, well hope i can do something right even if ido not understand this game!
You also can't simultaneously work at 54 locations...but I do it every day.
ah but i disagree! with the internet a person can work anywhere in the world irl if they want to!
i voted, tho...
It´s robbery .....
vote 44
o7
and yes...voted & subbed!
Voted and thanks for the information. Educational!
shouted
voted!
v+s