Thoughts on the Tax System
Day 1,090, 03:58
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Published in New Zealand 
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by
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by voice
Bonjours my Friends, and Not-so-Friendly Reader,
(Note that reader is in singular, he knows himself ;P )
The current situation:
http://www.erepublik.com/en/country/economy/New-Zealand
As you have noted, all our import tax for the consumer products are 1%, Grain 1%, other raws 1%
Food and Grain
Despite low import tax, the food and grain markets are dominated by local producers, and no need to change the import tax. However, in Grains the reverse can be also said, since there is enough production and competition among local producers that closing the market will not affect the price.
Tickets and Oil
There is now only one company, a foreign one, that reasonable sells tickets in our land. No local production. I know that we all can get tickets from the international market, but it is no reason to ignore our local market. What prevents local companies is that we do not have oil. No one exports oil here. I suggest doing something about encouraging oil importations, and the installation of moving tickets companies. They will provide local taxes and local job offers.
so i suggest we tax more the MT import, VAT and Income, leave the oil as is.
Weapons and Iron
While we have good foreign offers of weapons, and nice supply of foreign iron, being non producer of iron, makes the current iron tax very adequate. We need cheap iron, to help local manufacturers, especially future Army Factories. However, seeing the amount of foreign weapons, makes me suggest that we squeeze some more Dollars by rising import taxes and VAT to 5%. That will get us some extra few dollars without destroying the market!
Notice:
at the end, these are some thoughts, that still not based on statistic analysis of the market, and that did not take in account how much the state actually receive.
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RESULTS OF SARCASM DAY
1. Carr De Vaux : 2.5 G
2. Damien Wolf : 2 G
3. Marcos Arolia : 0.5 G
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QUESTION OF THE DAY:
(FREE ENTRY)
(5 NZD immediately to first correct answer each question, ie 10 NZD in total, if you are the first to get one question correct, you get 5 NZD, if you get them both first you get 10)
1. Who is the first King of Saudi Arabia?
2. Which American president met that King on board of an American vessel in Suez Canal?
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Abdul Aziz Al Saud commonly known as ibn Saud was the first king of newly created salafic kingdom of Arabia after defeating more moderate Hashemite Sharif Hussein.
He met with the American disgrace Franklin Delano Roosevelt on board of USS Quincy.
No to rising taxes!
Both correct!
as for tax, i am saying to keep them as is, but only to rise a little the import tax on weapons, and MT and little VAT on the weapons
Keep all taxes low!
Low Import Taxes on food and grain are just fine. On the other hand, if we choose to allow a local weapons industry to grow, we might consider raising Import Tax on weapons a little bit. The same ofc applies to tickets, houses etc.
In any case the problem is not Import Taxes; it's the high Income Tax that raises production costs for our companies.
The Government insists Income Tax (i.e. tax on workers' wages) should be our Country's only tax revenue. This does not only affect the actual wages our workers receive; it also affect the companies who are struggling in the Job Market to attract workers by constantly raising nominal wages.
Have a look at another new Country's tax system:
http://www.erepublik.com/en/country/economy/Republic-of-China-Taiwan
It's a much more balanced approach, isn't it? It's also interesting to notice eTaiwan has already managed to drop its currency to 0.021 TWD/gold. It seems they are doing a better job than we do...
all taxes are bad, in a sense that they always hit the poorest, no matter what it says on the bill. it is then essential to keep them as low as possible.
of the taxes we can raise in this country the fairest seem to be import taxes and export licences, esp when there are no bilateral trade/customs agreements between countries there is no big risk of imposing retaliatory rates against us. of course if we go to high we may get embargoed.
btw, what is the budget for? what does government spend our money on?
@Milo: in the game we can't have different taxes for different categories of income 🙁, but what can we do is to help charity and solidarity among people, where the rich can donate and the less rich can receive help.. eNZ is a new country and lot of work is to be done.
i am not in the govt so i can't tell.. yet we did not have any budget summary report (this is the first mandate ever in the history of eNZ)
Spyskam, the slow inflation of the NZD is entirely intentional. By slowly lowering it, we allow everyone to exchange their currency as needed, and not take a massive reduction in wealth overnight.
Its also important to note that import taxes do not yield a great deal of revenue, but only serve to discourage foreign importers. Local manufacturers could compete with these foreign importers quite easily, if they choose to do so, but until they demonstrate the willingness to do so, it is of utmost importance that we continue to buy imports to meet the needs of our citizenry.
taiwan exists ??
@voice
Taiwan not only exists but has also managed to be more populated than eNZ. Our main problem is we failed to attract people to this country and, as I have repeatedly stated, a high Income Tax does not help.
@NX
Oh well... It's evident the slow inflation of the NZD is intentional. I just can't help thinking how eagerly everyone awaited for eNZ to get its first Congress, as to issue some NZD. This was considered to be a top priority back then. We've got a Congress now, we just didn't see any money issues yet. I also remember Thingol saying NZD rate should be somewhere between 0.010 and 0.015...
Anyway, since it's obvious there's no sight we'll ever see a lower Income Tax, I can only join my voice with MiloBem and ask what is the Government budget for.
One major cause for the impressive strength of this new eNew Zealand economy is these low tariffs. They force our companies to stay strong and efficient, and keep prices low for consumers. Raising tariffs on anything would cause significant suffering across the economy, for the benefit of a couple business owners. A benefit our company owners don't need, because our companies are already successful.
I wish we'd get the rate lowered slightly faster then we are doing so at the moment.
Having to constantly monitor the markets, make company adjustments to wages , offers and prices in anticipation of reaching that rate is a total killer.
It's also making plans for importing and exporting worthless and who knows what shape we and the world will be in when we finnaly reach the point of stability some (2?) weeks from now.
seriously, what do we spend budget money on? any talk about taxes is nonsense if I don't know what are our country's fiscal needs and why. Do we fund schools for children? scholarships for apprentices? free bread and games for plebs? I haven't seen any of those so I see no reason to pay any tax while there is 13k$ in state account that I could use for my first house or at least a decent meal.
Down with income tax
http://www.erep.co.nz/index.php?topic=846.0
@spyskam while I agree with your opinion on income tax, I'm afraid devaluing money is not the answer. Stable currency is almost as essential for doing business in medium-to-long term as low and stable taxes are in short-to-medium.
stable currency means it's value towards commonly accepted neutral good (like gold, house, bread or beer) remains stable. in other words only as much money is issued as is necessary to balance growing economy and keep average prices and wages stable on level previously agreed (set in stone), preferably the actual level at the time of adoption of monetary system.
expecting devaluation of money by inflation to push the economy forward is common illusion spread by economagicians and banksters.
Not that id know, but what's the point of having a high import tax on hospitals? Most private owners dont own hospital comps anyway, so the only time youd be importing is if its a gov't thing.
i did not discuss hospitals because they are not consumer product. and i don't know what is the point of that hospital tax !