Law proposal: WT change to 3% from 2%
Ilene Dover
Law Proposal:
I propose that we increase work tax from 2% to 3%.
Why:
Government revenue doesn't cover half our MPP stack, which needs private donations to maintain. At present, government takes 60-70k CC monthly in tax revenue. This will pay for about half of our 12 MPPs, leaving no savings and a deficit of 50-60k CC. Tax revenue therefore needs to increase, ideally while spending is decreased.
Experience from experimentation during earlier CP terms shows a 3% work tax, with VAT and import tax at 3% and 15% respectively (current levels), will increase tax revenue to approximately 100k CC/month.
How does this effect me?
Your tax paid through salary will increase. For example, on a 60CC salary you currently pay 1.2 CC in work tax. This will increase to 1.8 CC.
Your tax paid through work-as-manger will increase. Currently this is 1.09 CC/company. This will increase to 1.64 CC/company.
What do I need to do?
Debate the issue through comments. Senators, ministers citizens alike should express their opinion - this is a healthy way for a community to work out what it wants. Whether you agree or disagree with the proposal, it is important to explain why you do so. If you disagree, an alternative idea to solve our budget problem would be constructive.
If you are a Senator (Congress representative in official gamespeak) elected a few days ago you also need to visit the Voting Hall to cast your vote. The poll will close 24 hours after this article drops off (so about 16:30 on day 2810).
Comments
Importers don't see our market as a worthy investment so there is no money to be made there.
Higher VAT doesn't increase our revenue by much either as most people don't sell too much on the market.
At the moment VAT and Import taxes are set at a 5 to 1 ratio which allows locals to sell on the market without fear of being out priced by higher bonus producing countries, therefore it's the safest ratio.
So the last option is Work Tax, and by World standards 3% is quite low, so it is the most logical avenue to take, it will give us an extra 30k/month and not that much of an extra burden on producers. To combat this is to sell maybe 5 to 10% of what you produce on the market as VAT is low at 3% and will gain you enough profit to counter any WT increase.
Simple fact is if we don't do something we will have to cut more than 1/2 of our current MPP stack, which leaves the country more vulnerable to attack.
Is that a roundabout way of saying you agree? 🙂
I love roundabouts.. agree
So when we played the game previously of changing taxes what records were kept to show trends of taxes?
Honest question here as I have yet to see any spreadsheet (that I recall) showing the trends during the last time we played move the tax bracket
Me? None. Anecdotal and observational evidence only.
I'm just a maths geek though. Others had actual finance roles and may have taken their job seriously.
Not you personally Ilene as I cannot remember who was in the group that ran the tax movements 2 terms ago, so it was a comment to get involved.
More so it shows why I am dragging my feet as there seems to be no evidence in an easily read format to back the reasoning.
I don't read, I just look at pictures
The taxes were governed by me, I watched the tax revenue daily, I know what they were, but I don't have spreadsheats, but I have nearly 8 weeks with over 5 different tax changes in that time, so these figures are relative to now.
I also watched the tax changes over this period and saw 2 pink elephants
That was the problem-- With taxes changing every 1 1/2 weeks, how could we take into account anything else that happened in that time? So those numbers are largely meaningless, from a statistical perspective.
We should now have reasonable data on how things worked at the current level. So I'm cool with changing 1 thing only by 1% only and leave it for a while, then we will have reasonable data there for comparison.
But I have to say, if Henry is correct that "most people don't sell too much on the market", then they are consuming it and/or giving it away. So mostly this would hurt our self-sufficiency/generosity. Maybe our wages more than compensate for that. Don't know, inadequate data.
Let's try it for a month and see. But if it's too hard for the newbs, I'd consider it counterproductive.
\o/
Does paying all that tax guarantee that we will be protected such that the bonuses and benefits we will get outweigh the taxes paid?
There are never guarantees, but having 3 extra MPPs can make a difference, so if you can sell a little of your stock to pay the difference in WT then there is no real problem.
We'd all like 0% tax and 100% stuffs ..... but the reality on a country as small as ours dun work that way unfortunately 😛
Absolutely not!
There are no guarantees in this game. And, as always, protection of our core regions rests with the strength of local citizens. If you can't fight, and fight hard, to defend your home then all the mercenaries in the world won't help.
That said, 3/5 food regions isn't exactly bad. WT globally is normally in the 3-5% range, with VAT at 5% or higher. We pay low taxes, relatively speaking. Even if this proposal gets up.
Really good question Keriz. We see that there will be concrete advantages-- more cc for MPP. We can't really predict the negatives, we have to try it to know what else might be affected. It's only 1%, I say let's give it a go for a month and get a proper evaluation. Then decide whether it's a + or - for the long term.
I am going to abstain as there is only hear-say on what people saw
This is my opinion:
http://www.erepublik.com/en/article/-law-proposal-new-wt-10--2541575/1/20
3 % was kindly realistic for us.