Congress recently raised VAT to 20%. I tabled the proposal after an accessment of the current economy. The introduction of the buying bot has inadvertently driven down prices world-wide in a bid to clear markets of excess stock. The reason this good intention™ failed is because of a fundamental problem in the eRepublik economy.
Each citizen owns multiple companies. This allows a reasonable amount of self-sufficiency after which they usually try sell the surplus. But when everyone is largely self-sufficient and has a surplus, we end up with fewer customers than what the market needs to absorb all goods. The natural economic consequence is falling prices. This has steadily happened. The bot was introduced to clear the lowest priced markets which logically must have the largest goods surplus. The nett result is that it has become impossible to sell at any price higher that the bot floor limit. A vicious circle as a result of this artificial demand.
Why did we raise the VAT to 20%? You need to understand the VAT is a value-added tax. This means it is taken off on top of your profit+cost of manufacture equally for local producers, imported goods, and private traders speculating on markets. The bot also pays its listed price (default listed in inventory screen) + VAT. It has no effect on you if you remember to add it to you cost.
Answer the question already. What the increased VAT does do is bolster the Treasury for more MPPs, social rewards, and other goodies the government plans to redistribute the free tax money (that earned from the bot) back to every citizen.
Why did we want to drop Income Tax to 1%? We agreed that margins have become so tight, and the earnings from Income Tax so insignificant, that eliminating this tax is best for all South Africans. It puts a little extra in everyone's pockets and is out last resort to keep wages sane. The higher wages are and the more prices fall, the less profit companies make and the less reason they have to exist. This debate has yet to be won in Congress.
No more talk of darkness
Forget these wide-eyed fears
I'm here, nothing can harm you
My words will warm and calm you
Let me be your freedom
Let daylight dry your tears
I'm here, with you, beside you
To guard you and to guide you
Say you'll love me every waking moment
Turn my head with talk of summer time
Say you need me with you now and always
Promise me that all you say is true
That's all I ask of you
Let me be your shelter
Let me be your light
You're safe, no one will find you
Your fears are far behind you
All I want is freedom
A world with no more night
And you, always beside me
To hold me and to hide me
Then say you'll share with me one love, one lifetime
Let me lead you from your solitude
Say you need me with you here, beside you
Anywhere you go, let me go too
Citizen, that's all I ask of you
Vote for Miyagiyoda of the Independent Alternative
- people driven policy
¿Qué es esto?Estás leyendo un artículo escrito por un ciudadano de eRepublik, un juego de estrategia multijugador inmersivo basado en países reales. Crea tu propio personaje y ayuda a tu país a alcanzar todo su esplendor mientras tú te consolidas como un héroe de guerra, un reconocido editor o un gurú de las finanzas.