6% Work Tax Proposal Explained
Day 2,773, 19:40
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Published in USA 
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by
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by I am The Best23
Hello fellow eUSA citizens of eRepublik! Recently our congress proposed a law to lower the Work Tax rate to 6% and it failed to pass 19 votes for and 20 votes against. I will try to fairly represent both sides to inform you as much as possible.
Reasons for lowering the Work Tax to 6%
Lowering the tax would save you money! How much you ask? Since eRep makes it impossible to get any real stats here some things you just have to guess at. I will use the example of a player working the top wage and works overtime once per day and owns 10 companies. Many players have more than this but the younger players have fewer so this is orientated towards younger players. So each day there is about a 27cc savings and 180cc each week and 9825cc each year for only 10 companies.
Wage Value - top wage: 60.61cc average wage: 35.05cc minimum wage: 1.00cc
Savings per day - top: 1.21 average: 0.70 minimum: 0.02
Savings per week - top: 8.47 average: 4.90 minimum: 0.14
Savings per year - top: 441.65 average: 255.50 minimum: 7.30
Savings per day w/overtime - top: 2.42 average: 1.4 minimum: 0.04
Savings per week w/overtime - top: 16.94 average: 9.80 minimum: 0.28
Savings per year w/overtime - top: 883.30 average: 511.00 minimum: 14.60
Savings per day - 10 companies 24.5
Savings per week - 10 companies 171.5
Savings per year - 10 companies 8942.5
Principles of economics tells us that there is a Multiplier Effect. For example this means that if you have an additional 180 you will either save some or spend some. If Marginal Propensity to Consume(MPC)=.9 and Marginal Propensity to Save(MPS)=.1 this means you spend 90% and save 10%. So if MPC=.9 than you will spend 163cc of that additional 180 and save 17cc. So when you spend 163cc that must go somewhere right? Yes, it goes to buy more products of the market and goes into another players hand. Now another player has additional 163cc and he will spend 147cc and save 16cc. This cycle goes on and on.
Other reasons to reduce taxes is that we have reached our agreed upon reserve mark necessary for emergencies and war. We continue to grow it at a fast rate and would continue even with the lower tax. It doesn't make sense to keep taking money out of the economy when we are fully prepared. We also have no real enemies to fend off at this point and no looming wars to pay for. We recently launched an airstrike mainly for the lulz of it out of boredom which costs us hundreds of thousands of dollars. So this backs up the claim that we have plenty of money that we don't know what to do with it.
Conclusion
This tax would save an average player 180cc per week. However, it would strengthen our economy so much more due to the Multiplier Effect. This additional spending would also be taxed to make up for a little of the lost tax revenue.
Reasons for keeping Work Tax at 8%
Some reasons include that many players do not own any factories and would not gain much with the reduced tax. The ones who do have many factories are usually older players who do not need the extra money anyways. There is no urgent reason to lower the tax and it would have little impact.
Another reason to keep it higher is because one single campaign by an enemy invasion could wipe out a good portion of our reserves. Therefore, the more money we can add to reserves the stronger we can be and have better ability to pay high Combat Orders for damage as well as supply tanks. Since the eUS is not as strong as it once was, we rely on Combat Orders to get big tanks to fight for us. Reducing the tax would mean thousands of dollars in lost tax revenue each day.
Conclusion
Keeping the Work Tax at 8% would allow us to add to our reserves to protect the country against possible wars better without being a huge burden on taxpayers.
Now I hope I have given you sufficient information on each side for you to make an informed decision on which side you support. If you have any questions, comments, or suggestions you may direct them towards me or another congressman to be brought up.
Nobody who gave his best ever regretted it
-George Halas
God Bless America
I am The Best23
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Comments
Good stuff. I liked your summary better! 😉
★★★★ Baaaa ★★★★
i wish you would do an article on what happens if the government used all the currency they held to support a war effort, your estimate of how high prices would rise and what the actual purchasing power would be of a large cash reserve would be.
Thanks for the effort mate. Good stuff!
Great Article!
Good job o/
My question for those supporting the retention of the 8% WT is: How much is enough?
Back when the WT was higher, there was a stated amount that the reserves needed to be at before the WT was to be lowered. That amount was reached and yet it took another 6 months or so before the WT was lowered. Interestingly, the rate it was lowered to was higher than it was before the emergency.
We have far surpassed that original reserve goal and according to the WHPR article, the current WT rate lets the reserve continue to grow at a substantial rate. Continue to grow to what?
So exactly how much is enough?
★★★★ Baaaa o7 ★★★★
There is lots of shady shit happening. It's hard to dwell on one thing.
Funny part is, it won't keep Kemal from a 37th term as treasurer.
If you are interested in lowering taxes you should speak to the leadership of USWP. We have been very successful at lowering the WT, and have led the winning efforts to do so.
Excellent troll lol
You know that they kick you out, when you turn 13. They don't like competition.
Possible this,
Possible that.
There are monsters under yor bed.
Stop being so scared eAmerica.
They are just shadows manipulated by darker shadows.