Why we should change work tax rates today
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by Releasethe Krakken
Please vote Liam's article up as well: http://www.erepublik.com/en/article/work-tax-2303448/1/20#comments
Anyway according to him the calculation is:
Average Wage * Work tax percentage:
In our case 24.08 * 18/100 which gives you 4.3344 IEP which is rounded to 4.33
Just showing that it has nothing to do with production:
Face it with the previouS system work tax at 20% was not an issue. Taking 200 citizens earning a high average of 30 IEP a day it would amount to a Collective:1200 a day.
[EDIT] Seems the minimum rate is 1%. 24.08 * 1/100 = 24 cent per factory. In my example at full production(I like to build factories for special occasions only) I will now pay 141 * 28 cent = 34 IEP (ROUNDED) where i used to pay 1 IEP so that is 34 times what I paid before . My production is 19000 * 0.04 = 760 . With the current rate I would pay 80% of my income over to the state. Now I will pay 4.5% thanks to Liam Tatlock finally seeing the light. This proposal has passed in all other countries in the world. If you keep it at 18% big players and sponsors will certainly leave our shore to make more money in other countries. Even a small change like 2% in Brazil will see players leaving. 1% is what this should remain at. Also at 1% we can just increase our production slightly to regain the money paid I will need 1000 more WRM or 3 * 35 Gold WRM factories. Others less.
That's ok. My current production is 2000 Q1 food a day and enough FRM to supply that. My WRM production is 19000 a day . This morning I wanted to make my usual 700 IEP a day(for a few days now took an offer) With the leftover WRM still on the market I cannot do it as it will cost me more than my money I will make. With about 141 Factories my cost is 5 IEP a factory or 610 IEP which leaves me with a profit of only 100 IEP or so.. The low level that wanred us to drop our work taxes was 100% correct. My plan was 24000 WRM production with 10 Q7 WEPS factories eventually giving me an income of 1000 IEP a day.
Ireland's Strategy
For those concerned about the votes. I consider this a very important issue with devastating consequences if the so called "rogue " proposal fails. We will leave in droves . i recently broke myself(as our RL currency rate does not even compare to the euro or the dollar to buy me a few months closer to my final financial goal in this game. For a regular contributor to the media atleast and many donations as well this is a question of eLife or eDeath. The last 3 proposals failed. For someone who says he is financially inclined this makes zero sense. lets break it down for sweet drinker: say you have a Q7 WEPS producer in the IA commune guess not James Keiler as he already left for another country but anyway certain there is still producers in Ireland well. 2400 WRM productions is most likely (16 * 5) * 4.33 in work tax. Now he has 5 workers with himself working there that is 6 * 4.33. Add another 10 factories for food then we are left with 96 * 4.33 or 415.68 just to provide 5 soldiers. i guess this makes much sense to a financial guru's
Congress is sleeping so I had to take drastic steps. You must pass a bill proposing a 1% work tax
WHY?
Its very simple just looking at myself as an example my food is not a part of my income production. If it goes past 20000 (usually after 10 days) I donate 10000 Q1 Food to Seanan. But that will cost me about 100 IEP for something which I make no money on?
Global Strategy
If we can affect the work taxes on our factories we should do it as quickly as possible. No doubt some governments will see this as a good income producing opportunity in which case if we pay 0 IEP for factory work taxes and the going price for example for the US is 10 IEP(5 IEP Work tax + 5 normal price)then if we drop it in at 9 IEP we make a 9 IEP profit right of the bat. Which will double many of our players income.
The Problem for the MOF
He made 867 a day or 26006 a month. But lets throw that away . I will gladly donate my entire salary of 8 IEP to the MOF instead.
THE ONLY OPTION!!!
Now I have heard some comments today like keep it for a week and see how it pans out. All other countries is changing it to 1%. You will lose all of your money player , players like me if you keep it like this for a week. BECAUSE 😠
As explained in the article the US are stuck for 15 days if they have regions on that day. Even if they stop producing their sheer demand must raise prices and this is where people with licenses will make a killing.
http://www.erepublik.com/en/article/a-us-market-license-time-to-cash-in--2303548/1/20
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Comments
"Congress is sleeping so I had to take drastic steps"
I've already brought this up in our Congress thread and http://www.erepublik.com/en/article/work-tax-2303448/1/20
ok but vote up all articles on the subject we need a fast change.
i have 160 companies i work in daily its not gonna stop me working in them all xD
yes but they already voted through your work tax to 1% here they are still kontemplating it.
Articles should stand on interest and quality not bought votes.
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What has that got to do with bought votes. Liam already has a congress vote on the matter, AD31 has already published an article with an extensive questions and answers section.
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Let's agree on one thing, the government haven't acted on the consequences of this quickly enough.
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No, you muppet, I'm complaining about your OTT vote buying. If you wrote consistently good articles you wouldn't have to buy votes. 95% of your articles are full of weird gibberish that get like 4-5 votes.
So when you want to make a point and your article is relevant, you have to buy the votes.
Don't you get it?
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110 votes and 13 comments. Liar. Liar. Liar.
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promoting issues is a normal practise anyway. there is no need to discuss it . its not relevant to the issue.
http://www.erepublik.com/en/article/-mof-new-tax-plan-2303818/1/20
For us new players this has ruined what is already a game of limited features and playability. I just lost 27 iep for the unforgivable sin of trying to make my own food. I was self-sufficient for food. Even made enough to sell a little food and FRM a couple of times a week. To help grow the iep stash. Maybe one day able to buy another farm or factory.
I cannot afford to work my factories now. The commune will get me weapons at least. But I will have to beg for food daily. I know players with a lot of investment in the game are seeing their profits significantly reduced. But new players are in substantial negatives if they attempt to work.
Games are supposed to be fun. They are supposed to contain a system of progression and reward. In a game already limited in this regard, the government has opted to limit this even further. Making 7iep a day in the commune is not viable.
The consequences of this policy would have been completely obvious at the time of conception.
There is almost no reason to continue playing. Right now the daily options are to make 7iep for commune work and train. On days when you can beg enough food, maybe a DoD also. I guess I just don't understand why anyone would introduce a policy that prevents new players from using normal features of the game.
send you 1000 Q7 Food sell it or eat it. this was never about attention as some ppl claim only about this very negative change.
Not necessary but very kind of you mate. I am in agreement with you. It sucks for established players. Just pointing out it is even more crippling for newer players. Awful policy.
Just so you know, and since apparently no one else thinks it would be useful to inform you, this change was not enacted by the government of eIreland.
What has happened is that the developers of the game have turned "Income Tax" into "Work Tax". Income tax only applied to employees in a company, ie. a % of the salary your employer gives you.
The new work tax, as it applies now for the first time to working in your own companies, is a % of the average salary in the nation over the last 30 days...paid every time you work in a company.
But please take note that this change was not made by the government of eIreland. This change was enacted by the developers of eRepublik.
It would seem some are concerned about their income, they can buy many votes, but that's neither here nor there. I have spent the last two weeks discussing taxes, how we survive and how it works, that's already out there. Appleman has released an article now saying what we can do that has expressed exactly what I've already said over and over. Knee-jerk reactions are not the answer because erep just threw us a curve ball it has no factual basis yet. Yes things need to be looked at and observed, but throwing yourself off a cliff because everyone else is doing it?
I'll wait to be called a Kunt but whatever, a calm rational approach is what is needed not the same freaking trolls yelling and screaming. If you feel that pinched send me a msg, I have extra food and don't mind helping you out. As Ian said erep admin made these changes not the Irish gov't, we have to deal with it but we also have to gauge what it means, we will adjust as needed but crying a god damn river isn't helpful in 1 day.
shut up an go work your 3 farms that you got when you started. and nobody wants jiz flavored corn flakes
Go buy more votes, see that part is easy. Gauging actual income is a little harder and takes a little longer.
i said it would be 28 cent per factory the average salary changed its 25 cent. the income will be more than what the work tax used to be before. there is no reason to even discuss this further . if we had a good mof he would have cleared up your confusion with actual figures telling you that income was at mist 1000 IEP a day before. and will be much more before. i paid 35 iep where i used to pay 1 iep so for me there is no logic in changing it again.
in fact if you took the best salary of 15 iep now that would be 2.70 or 270 cents roughly 10 factories which means 7 more than you get at the start. ok now that i have explained everything go drink a beer and eff up another car....
* and will be much more now with the change. lets say the average factories is 25 then it would mean average 6.25 IEP per player which is i think more than we currently get
Agree with OP, the current rate is tolerable but one could easily kill the golden goose with high tax rates.