{eIre MoF} Weekend Update
Day 3,435, 02:12
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Published in Ireland 
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by
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by Treasury eIre
Dia Dhuit Ireland,
Welcome to another Weekend update issue from the DoF. In this article, we will talk about weekly tax income, the boost of our finances due to Org rents, a proposed donate law, MPP payments as well as some potential changes to our economic model. So with out further ado, lets get into it.
Day 3,435
Show me the money!!
While it has been a week since the last update, our training war has not officially been active for a week, yet our countries revenue is feeling a effect of the increase incomes. So for this weeks financial report, I will basing the figures on the week that has been. From day 3,428 to the end of day 3,434. This period of time covers our nation securing the regions of Mayo and Dublin, through to the departure of Spain, as well as the start of the TW with MKD. While other events have happened during this time (the balance sheet shows all major events), we will be focusing on the dollars and cents.
Donations: During this period the eIreland government received a total of 40,000cc in declared donations. This is a direct result of private funding of our MPPs signed during this week. This 40k joins the previous donations of 17,672 (of which 500cc was declared), to bring the total for the month at 57,672cc. While this figure is a nice amount, we have to remember donations can be a fickle thing and should not be taken into account when we plan for any expenditure in the coming months.
Org Rent: Your government has managed to rent out 5 Orgs (which leaves 5 more currently avaliable), bringing in an extra 15,000cc into the government coffers. However the balance sheet for the term will show 18,000cc as 1 renter has paid for 2 months upfront. The DoF would like to rent out the remaining 5 Orgs before the end of term, to see a total monthly Org income of 30,000cc
Tax Income: For the week that has been, eIreland has managed to secure on avg 1,778.14cc per day (for the 7 day period), or a total of 12,447cc. When we compare this to the 'guesstimates' of the last financial term, we can see a daily increase of over 1,300cc. This figure is set to grow, when we take into account the 'taxes back' aspect of the TW with MKD. The main growth in our daily tax income, was from the WaM aspect of our economy, which for the week so a total of 5,812cc which equates to roughly 46% of our gross income.
All in all, our finances are going along quite nicely at the moment, however there is always room for tweaking. Which is something congress should discuss, since now we have a baseline to work from.
Donate Law
Currently in the government treasury, we have around 486,000cc sitting there. At most we will use 20,000cc per day (working on proposing and receiving a MPP). While it is okay to have this money in the treasury, it becomes at risk of being used in a rogue donate law, potential carrot for any MTO attempts. So as MoF I have spoken to our congress yesterday and today have proposed to transfer 400,000cc (max allowable per game mechanics) into the eIreland reserve bank. This will still leave 80k+ available for day to day running of the government.
Tax Changes
With the past week and current tracking of all individual taxes, this allows the government to debate and even trial any changes in the current tax system. While anything that is planned, will be run via congress, with a set time frame, it is something worth discussing. As a 2% or 3% tax increase in one field (remember that our income sheets show the different area's taxes come from), we as a nation might be able to increase our countries earnings by quite a bit, or maybe not. But having an open discussion and then a trial period, will allow us to obtain the data needed to make the most informed decision for the betterment of eIreland.
Potential Region Rent
The DoF and the DoFA will soon start looking at the potential and viability of a region rent, to increase the amount of resource bonuses eIreland can achieve for it's citizens. This will not be something that is rushed into, however it will be explored and then the results will be reported back to congress for a final discussion. The hopes are that the people who have HC's in eIreland will benefit, the financial strength of eIreland will grow, as well as making eIreland more attractive to immigration, both in terms of economical as well as people.
Your DoF team.
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Comments
MoF Report:
https://www.erepublik.com/en/article/-eire-mof-weekend-update-2637857/1/20
2% or 3% tax increase, and what area are you suggesting an increase in?, since the resource wars and irelands poor showing in them the countrys daily tax take in pre occupation times was always around the 2k mark at best, with some peaks due to "other farming methods" being employed, we are a small community and need to live within our means, if that means less MPP's so be it, but as you say we cannot expect people to pay for MPP's month after month from their own pockets, likewise we cannot expect the few to pay the burden of all taxes.
work taxes i guess is suggested mmm wrm is still not that strong and the one thing we are strong in. we could probably stomach a 1% increase but that would hamper young factory owners as they need to expand using the 10 gold lower production offer. your problem becomes in the strategic placement of resources. wrm is not that lucrative so not really a factor. food i dont think has high enough bonuses here so wont make much of a difference.
2% would be 3.96 if you take into account resource materials seems a bit steep.
Truth is, Ireland just is not an attractive place for production, its poor showing in the resource wars (bonus's) has hurt it big time, anything more than a !% increase would result in less taxes rather than more, as people move company's to a more lucrative country.
As i said previously, we need to have a country budget presented to congress monthly, based on the previous months tax take, and then let congress & the MoF decide how to allocate the funds.
We need to come out of the clouds and into the real erep world and face facts, we are not a rich country and cannot afford a high number of MPP's monthly (there are other projects we could fund with the cash), we need to live within our means.
I agree with the budget idea Nogin, that is why I am tracking everything with the multiple spreadsheets that I use. I am hoping the following governments do the same, so we can see the effects of anything Ireland does and plan for any future expenditure.
The MPPs this term have been a direct response to threats we have received. As well as rebuilding/mending many bridges that have been broken. They are being paid for privately so it a) doesnt effect the countries bottom dollar and b) allows the balance sheet to show the every day running costs of a nation, which will allow future governments know how many they can afford with the countries tax incomes.
@nogin, I am not proposing any tax increases. What I am saying is now we have a baseline, rather then 'guesstimates', so if there was a discussion to be made, a proposition put forward by anyone in congress, at least we have a base line we can go off. It is one of the main reasons any MoF should track all events and finances, so if someone wants to discuss/propose/trial any tax changes, be it an increase or decrease, we have base line data to go off.
If we look at the data now and for this example I will take VAT which currently sits at 1% which earnt us 1,224 cc for the week (daily avg of 174cc not including what was lost to MKD) and increase the VAT to 3% it would be a rough income of 1,260cc for the week. But that is going off multiplying and it doesnt give a proper figure.
But by having a baseline, if anyone wanted to try and see about tweaking the tax incomes, they could and we would have actual data to compare it against. That is why I am also looking at region rents elsewhere to try and increase the resource bonuses available to Ireland.
In regards to work taxes, Ireland will always suffer, due to people employing people in a commune system. Communes only benefit their owners and not the country or the people working in them.
guesstimates are just as good as the actual data. like nogin said its not like much change in Ireland. its only people that buy tycoon packs that really expand and food is the main drive for expansion. unfortunately it would be better to rent cork to England in that regard. i suggest a free rent and a continual TW afterwards. but i dont see much factories being built by experienced players. in fact im moving what i have away . your best bet would be young visa players as they could easily buy say a couple of thousand gold and then built wrm factories. or use pack sales to fund the 8500 offer. or just go for the 35 gold offers. either way i would suggest making your policy low taxes. inexperienced players always jump on the higher taxes bandwagon and they can sweep along all non producers dropping your total seriously in a couple of days. but nogin is correct have a lower mpp budget alliances unfortunately dont drive people in their hordes to fight for you co's does.
@RTK, I welcome your opinion, since we have seen that you have a great financial mind.
But renting Cork to England and then having a TW, will make no-one take advantage of the region bonuses due to the NE. Which would make it a pretty bad idea, since as you stated it would be rent free. Even with out the TW, your literately giving away a region and they will take a chunk of the tax income. That would not help any budget.
The continual TW we have now helps the income, by taxes on medals as well as driving food/weapon purchases. In regards to factories, having people put the nation first rather then their communes would be more of a help, however as we know, some people tend to only care about their own back pocket.
Using Visa players is a short term solution, but like most visa players, they will start to ask why are they spending RL money to sustain a country that doesnt give back to them. It would be better to teach younger players on how to make the most of the economic side of the game, teach them how to be self sufficient and show them the way. Which is something I have done in the past and will be doing via my MU. If it proves to be successful there, I will roll it out to the nation, since each country is slightly different.
MPPs do work, I have seen it first hand and to help fund the MPPs, we can use Org rentals, which we are trying to introduce here. It has been very successful elsewhere and something I proposed back in my CP candidate article. Going from the 5 Orgs rented out already that equals 1.5 MPPs per month covered with out a worry. From the figures we have from this week, we can roughly estimate the income for the month will be around 1,778*30 = 53,340 + Taxes back (roughly 11k) = 64k (this is an estimate as things could change).
So taking the Org rent known today of 15k + 64k Tax income, we can afford 6 MPPs and still have plenty left over for more. If we manage to rent out the remaining Orgs, this will increase.
Cont.
It is better for the country to be self sufficient using the means we have, rather then rely on the hand outs of a few Visa players, because they always demand something in return.
every player demands something in return for their time spent(every active player) however ofc we would take some of their regions and they some of ours 2 2 split and then we would have a tw with say 4 no resources regions or 5 and end the NE. since they have probably more players than us our taxes would be more and theirs would increase as well. that way our food factories would have a 100% country bonus . i am not thinking in the vein of taxes as such more as to how to keep food factories in ireland. for example i get 147 from mine and 220 in other regions with the 20% tycoon and low pollution its a 73 Food difference. i moved the last few to the usa today.
@releasethe Krakken What about the citizens with holdings in Cork. They get screwed with your proposed tw with UK.
@kattiaa no they wont production for cork citizens what i suggest is we take 3 non resource regions of them and they 2 of us and Cork and then we end NE's or they declare NE and then stop NE after regions has been exchanged. the government gets 2 regions from them for taxes they 3 of ours thereafter we TW leaving Cork out. that would give them 100% food bonus. and our factories in cork would get 100% as well in food production. since they have a larger population than us taxes would be the same or better for us.
Truthfully no one in there right mind would have a holding company in Cork, its just not the thing to do if your after profit.
lliam costello has one i think other players as well. well help your neighbor. and as well co cost will go down against a smaller nation. we are sponsoring co's but in real government that would be an expense for the government so we should atleast try and keep that lower as well. not that 170000 k is a lot. but problem comes when future governments of them gets greedy or hostile then your sitting with a lion in your backyard not a bull mastiff
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