Further Reflection Part TWO

Day 2,418, 16:26 Published in Ireland Canada by Natster
The CURRENT system
Average Wage :: $24.81____________________Work Tax :: 2%
__________________Cost/FRM Worked :: 0.4962
PRODUCTION

Q______FRM______WRM____________WProd____FProd
1______35_______35______________10______100
2______70_______70______________10______100
3______125______125_____________10______100
4______175______175_____________10______100
5______250______250_____________10______100
6_______________________________10______100
7_______________________________10______100

INITIAL BREAKDOWN

Q______F SELL______W SELL______RM______RMCost___Self-Produced
1______0.05________0.08________100______3_______0.5
2______0.08________0.19________200______6_______1
3______0.17______0.38__________300______9_______1.5
4______0.24______0.79__________400______12______2
5______0.36______1.79__________500______15______2.5
6______0.48______3.49__________600______18______3
7______0.79______9.19__________2000_____60______100

REVENUE/FEES

Q______F REV____W REV___FVAT____WVAT____WORKTAX
1______5.00_____0.8_____0.010___0.016___0.49
2______8.00_____1.9_____0.016___0.038___0.49
3______17.00____3.8_____0.034___0.076___0.49
4______24.00____7.9_____0.048___0.158___0.49
5______36.00____17.9____0.072___0.358___0.49
6______48.00____34.9____0.096___0.698___0.49
7______79.00____91.9____0.158___1.838___0.49

REALIZED PROFIT

Q______FNET_____WNET____RM COST__Food GT___Weapon GT
1______4.254____0.288___0.49_____3.76_____-0.21
2______7.104____1.366___0.98_____6.61_____0.87
3______15.65____3.238___1.47_____14.17____1.74
4______22.31____7.246___1.96_____20.32_____5.26
5______33.70____17.05___2.45_____31.22_____14.56
6______45.10____33.71___2.94_____42.13_____30.73
7______74.55____89.576__9.80_____69.59_____84.61

Proof that our current tax rate is broken.
With current rates, producing your own food production isn't profitable until Level 3 and Loses profitability at q7 as well.
Caveat is that if you produce your own weapons, you are profitable at lvl 2 and above. However, that is only if you don't do any WRM purchases.


I was out by a factor of 10, did the same mistake below as well.
FIXED above and we can see it's not so bleak...

This whole formula gets thrown out the window with a lower overall average wage. Believe it or not, based on raw numbers, my prior article becomes a stronger case for players and for industries.

The last article would most certainly get the average wage down of the player across the industry (maybe even to the tune of $3). This would reduce the cost of generating WRM and FRM. $3 * 0.02 = 0.06 cents per unit. At this point WRM and FRM work tax could be increased to 5-10%. This would give a .15-.30 cent per 100 FRM (less than 1 cent per unit). Even a newbie player, would see a big profit potential on their WRM and FRM sales. For established players, they would see their margains grow larger.

Some have argued that the current way of the structured system is better, but as you can see above. This is not true. With the previously proposed system, you would find it easier too attract businesses and allow players to be self-sufficient earlier.

I do agree to the fact we need resources and amongst the army and government we need to discuss how we get access to those resources and to what amount. The more the bonuses, the more the cost to produce. With the current system, there is no way to tier the tax, and I simply couldn't figure out another beneficial to everyone scenario.

The Proposed System

See below for what I see happening with the end game of the WORK TAX AT 100% for Weapons and Food, but WRM and FRM at 2%.

REMEMBER THE TRADE OFF IS THAT YOU HAVE TO USE EMPLOYEES TO GENERATE REVENUE
Only Exception would be FRM and WRM

Average Wage :: 3____________________Work Tax :: 2%
__________________Cost/FRM Worked :: 0.06

PRODUCTION
Q_______FRM_____WRM_____________WPROD___FPROD
1_______35______35______________10______100
2_______70______70______________10______100
3_______125_____125_____________10______100
4_______175_____175_____________10______100
5_______250_____250_____________10______100
6_______________________________10______100
7_______________________________10______100


INITIAL BREAKDOWN

Q_______F SELL___W SELL___RM RQ'D_____IF BOUGHT___IF PROD
1_______0.05_____0.08_____100_________1___________0.06
2_______0.08_____0.19_____200_________2___________0.12
3_______0.17_____0.38_____300_________3___________0.18
4_______0.24_____0.79_____400_________4___________0.24
5_______0.36_____1.79_____500_________5___________0.3
6_______0.48_____3.49_____600_________6___________0.36
7_______0.79_____9.19_____2000________20__________1.2

REVENUE/FEES
Q_______F REV___W REV___FVAT____WVAT____WORKTAX
1_______5.0_____0.8_____0.01____0.016___0.06
2_______8.0_____1.9_____0.016___0.038___0.06
3_______17.0____3.8_____0.034___0.076___0.06
4_______24.0____7.9_____0.048___0.158___0.06
5_______36.0____17.9____0.072___0.358___0.06
6_______48.0_____34.9____0.096___0.698___0.06
7_______79.0_____91.9____0.158___1.838___0.06

REALIZED PROFIT
Q_______F NET___W NET___RM COST___FOOD GT___WEAPON GT
1_______0.430___0.724___0.06______4.63______0.664
2_______0.724___1.802___0.12______7.48______1.682
3_______1.606___3.664___0.18______16.03_____3.484
4_______2.292___7.682___0.24______22.68_____7.442
5_______3.468___17.482__0.30______34.08_____17.182
6_______4.644___34.142__0.36______45.48_____33.782
7_______7.682___90.002__1.20______74.93_____88.802

With my proposed system Food is profitable above L5, and Weapons above L3 (even if working for yourself). Not only that, the take home is a lot higher for producers. These numbers assume that all RM's were generated with an L3. The profits proposed above, could be increased if a player used a higher grade of WRM or FRM also decreased if used in both scenarios.

Again modified the tables above where I missed my factor of 10

Also, I truncated the math and used 100 WRM as the figure to hit and didn't factor in the +25 produced. However, both scenarios are given the same handicaps and abilities.

What's awesome about the 100% work tax since it's based on average salary, When working for yourself at level 1 food, you are still profitable.

The big idea pushed would be to get all companies to fix wages at 3.00 or don't offer a job.

This would make extremely profitable for everyone in the long run.
Than the market would bear a higher VAT as well, as we would be able to compete on the global level. However, I think a closer look at that would be necessary. The key to this is our average wage. Believe it or not, by doing the average wage as low as we can, everyone benefits. If we get it down to the $3 price point this quickly turns around our whole economy.

Adding my two cents