VAT Tax
Day 1,384, 17:01
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Published in USA 
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by
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by Lexone
VAT Tax stands for Value Added tax. When you sell something say for 1.00, and the country's vat is 10% you will only earn 0.90.
The person hurt in this is the seller. Earning less than what they expect. For example, someone decides to sell 100 tanks for 35 each. They expect to earn 3500, but with a 10% vat they will only earn 3150.
To compensate the seller can sell the tanks for 39 each to earn their 3500.The person hurt in this is then the consumer. Also, there will be less people purchasing items for a higher price than they should be. Another thing that could happen is less people will sell stuff. Only when a transaction is made does the government earn revenue.
So what is the solution?
Lower the vat!
Possible outcomes of lower vat.
1.Prices for goods stay the same. In this the seller profits the most receiving 99% of what they expect to get. They will get more money and spend it how they want. They are just as capable as purchasing tanks and food than anyone else. Especially the government. Spend your hard work on what you want.
2. Prices for goods rise. The seller profits the most again. Again receiving more pocket money. This most likely wont happen though unless people get greedy.
3. Prices for goods decrease. The seller should not be hurt too much. They will still be making more than they used to with the high vat. The consumer will be most happy getting cheap goods. Higher economic activity could also result in more transactions which is more revenue.
As you can see higher vat is not the answer.
Less is really more in this case.
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A member of the military wants the military to have less money, oh damn.
I already explained lowering vat would make everyone richer. Military or not. Military would benefit the most as they get food from govt. They can sell there own products for more cash and buy weapons with it as we don't get weapons even after the taxes were raised.
You can say revenue would be decreased and that might be true, but there wouldn't be a need for that revenue if you got 10% extra profits from selling your stuff
Irl I would agree with you 200%. In this stupid game I'm not so sure.
This is an appropriate article for a newspaper called "Laissez Faire".
Though I don't quite agree with the reasoning, I do agree with the call for VATs to be cut. So voted.
Well I own a Tank a company and in my case at least this isn't what went on. When taxes went up tanks got a lot cheaper. They are now around 33 when they were going for about 37-39. As a seller I did not "compensate" because I have to put up a lower price to compete with all the new tank companies that were built with the gold discount. So in the end the winners are the govt and military. Everything they buy is basically at a vat tax discount because they get the money back lol. Wages also went up by like $30 so I doubt they are struggling.
[OPEN LETTER] Plato, fix the Donation Law:
http://www.erepublik.com/en/article/1857720/1/20
@ paladn - the taxes were raised while the eUS conquered a new weapon resource - the increase in supply reduced the price of tanks more than the VAT raised the price. You can also account for an increase in the labor costs/wages as being part of the isolationist movement which raised the import taxes. Due to the 99% import taxes other countries can't in essence import goods which essentially bans all outside food competition - IE all food needs to be made in eUS and in order to keep supply up we must thus compete fiercely for labor thus wages go up - and since food and weapon labor is interchangeable all wages go up because of that tax