Work tax: Its weakness, the issue, the solution
Day 2,464, 03:37
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Published in United Kingdom 
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by
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by hotfuz
Courtesy of Hollenboer.
Hello euk o/ o7
Instead of a wars around the world article i am gonna write a bit on the financial issue euk is facing with work tax and a possible solution. I will try and do a wars around the world article tomorrow but i believe this article should take priority, also apologise for not publishing my wars around the article for a while, like said got terrible internet so its quite hard to click on all the links of the battles and get some info for you guys...
What is Work tax
Work tax was created instead of income tax however it would also apply for 'work as manager' and employees... Work taxes are a percentage amount, that percentage is then taken away from the average wage which gives the work tax. Work taxes can be set between 1% to 25 %, average wages are calculated by all the employees wage put together and divided by the amount of employees. The work tax is then given on each SEPERATE company
For example: Citizen A works as a manager in 4 companies and the average wage is 100cc and the work tax is 1%, Meaning the the overall tax is 1cc. Therefore for each of his companies he would have to pay 4cc when ever he works as a manger for them. The money is then given to the treasury...
The admits introduced this because it would give the government a constant supply of funding... They also thought it would make a step to improving the economy...
The issue in euk and the weakness of the tax
The problem with this system is that now the players can get grips on the tax... The tax is once again determined through average wage, so what stops to Ptoers sharing 300k working for each other which would ruin the economy???? This is whats happening in euk... We are seeing (in my thinking) PTOers working for each other at high wages causing the average citizen wage to shoot up:
This means even when we put the tax to its lowest the Average salary can carry on go up at an unlimited amount which would take control of the tax that the players have to pay and the amount the government gets from it... The control the government as over the tax is limited but the citizens control is unlimited, and because of the political scenario euk is in it is very very dangerous...
Tables, stats and figures
The new players are the ones getting the BIG blow. Because of this they will be leaving fast... Here is a table to show why:
FRM:
From the graph we can see that Grain farms and fruit orchards are no longer profitable... Also we can see that the FRM business is a bad idea atm... It will over 1000 days to repay any investments which is a waste of money... This is a big big blow to the newbies because they are given a few grain farms to start of with i think which means with more Grain farms they will go in a hefty loss... And the bad thing is they wont even know most of them! Sowe get newbies quitting and therefore our ecountry is not building..!
WRM:
Exact same problem here however the WRM industry is much much bigger... But the good thing is that most have Alu mines... However it will mean at this rate it will take more then a 1,000 days to repay the investment. This is causing most people to stop production for a while and save energy which means that the government will not be getting money so its a both down down for WAMers and the government...
Food Factories:
The food factories are fine for the beginning but as we move up the scale the older people who spend tons and tons of money in the investment are know facing a massively lengthened 'time to fill investment'... This may mean these players will move out of the country into others so they make the profit and many of them would be div 4 tanks which will damage our defence as well...
Weapons factories:
Same principle here. there is very little business currently with weps factories as well... People who invest a lot are taking a heavy fall along with the young investors!
What this all means?
Well when we look at the tables we see damage done not only on younger players but on older players as well... Because of the rising average wage it looks like it will only just rise which will mean these older players are going to have to face a decision between staying in euk and going some where else to get more money and because of the PTO we have a lot of push factors working against us meaning that these older players will want to move out... This means less damage on the battlefield for us and ultimately making euk much much weaker... As for younger players, they will go into loss and a lot may not even know about it... This will mean many would quit which means we lose players that need to help us in the future... I also know a lot of people halting production for a while once the work tax reduces meaning less money for the government through VAT's and work tax's which ultimately reduces government money and halts production meaning a lose for both sides which damages our economy...
A solution???
The big problem here is that the players can have unlimited control over the work tax while government has limited... To really avert this crisis and prevent future ones we need to turn this around, so here is a solution i thought could be put in place.
euk has a total of 816 active citizens according to egov... Most of the 816 should be in production... My idea is that if we could make a scheme to repay the money back from the work tax... The money work tax goes to government right? SO why cant the government pay some back??? So if we could take around 50 people from this 816 as suppliers. Then we take each supplier and hand them over to supply 17 people each... The people getting supplied must show all the companies they worked in and give them the total work tax, then the supplier will deduct that from the set work tax price and it to the citizen...
Example:
Citizen A is supplier and B is citizen who is the worker.
The work tax for B in all his companies is 20GBP and he has 10 comps. The set work tax is 1 GBP
B will take a screen shot of all the companies he worked in and that he payed a total work tax of 20GBP in 10 comps... A then multiplies 1 by 10 and deducts 10 away from 20 which equals 10. this 10GBP is the excess tax, A then returns 10GBP to that player.
The suppliers will be given around 250GBP per day to use to supply and the excess should be donated to the country treasury or BoE every day... The set work tax can be changed by the CP if needby. Citizens can sign up to the scheme by a sign up sheet...
I believe this is a suitable solution since it not only returns the money to players and stabilises our economy.. But it also means the government can have control over this tax... The only problem i see here is that getting those 50 suppliers who must be trustworthy and active... We could always shorten it down to 30 which means 27 people to supply each, but i think that from the 816 citizens on;y about 3/4 of them are fully active or produce using comps which means 612 citizens meaning we only need 20 suppliers to supply 30 people.. 20 suppliers is still alot but we could even make this into a short time only scheme and when this crisis averts we can go back to usual and use this scheme whenever we face the same issue again...
Thanks for reading!
Please comment on your thoughts and opinions
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Comments
First comment. Great article by hotfuz
great solution, I'll create as many jobs as I can with my companies at 0.01 and I will drive prices down
The biggest problem with the solution is that Pto'ers could get into the Supply chain. This means we cannot under any circumstances accept any new players, or any Serbian players too. I do not recommend you choose me as a supplier.
Alphabet minimum wage 0.10 gbp
good article. im paying more than 150GBP on taxes every day so i am totally for this solution.
Needs more pics.
I will add some den 😃
clearly explained
Your solution is all very well but it doesn't stop some b*st*rd, or consortium of b*st*rds (including a multi-player) forcing the average wage up. Once a job goes from the job market, there's no way of tracing it right?
Yes but even when the wage goes up the scheme will make sure that the players wont have to pay for it
But if the Kenny McCormick-killers force the average wage up, then the treasury won't have enough money to pay everyone back, creating a Ponzi scheme of sorts.
WHy wont it??? Where does that tax go?? Straight to the government???
[removed]
It does go straight to the government, but let me give an example. If PTOers originally raise the average wage to 200 pounds and the tax is 1%, everyone pays 2 pounds per WAM. For the sake of math, let's say everyone has 2 companies, everyone WAMs, and there are 800 working citizens. That makes 3200 pounds. Then, the wage rises to 300 pounds and so tax collected rises to 4800 pounds. We use the 3200 pounds we collected yesterday to pay or supply off the 4800 pounds, but we're 1600 pounds shor.t That's where it turns into a Ponzi scheme. All I'm saying is that your plan is vulnerable to PTOing Kenny McCormick-killing b*st*rds who raise the average wage to place economic hardship upon the rest of us.
Lanth, i hear what you mean, however if we make it so the supplies are given on the day they work then we will have no loss or anything, I may if understood you differently...
maths*
May a possible solution lie in communes? Low wages would mean little tax and the citizen taking part could receive goods or cash equivalent to what they would be earning, similar to the subsidies you propose.
Great article, clearly explained with a well thought out solution, hopefully Congress will chew over this and the new Speaker can whip us into yay'ing or nay'ing.
Nope, thats not the answer, minimum wages would just men the worker gets less tax, the commune runner would still be smacked with the costs. Unless, they were abroad, ofwhich is something we should rather not support, as we'll lose our economy when things to resolve themselves.
excuse the bad spelling and grammar.
But mass communes would push down the average wage which would affect the amount taxed wouldn't it?
You would literally have to get every British Company owner to do this, or it won't work.
If I am not mistaken, the average wage is based upon all wages paid to people employed by British Managers. In other words a Polish citizen working for a UK based company contributes to the UK average wage.
P much what Crispy said, its all in or not gunna work. Sadly, if 1 person doesn't do it, it means the whole plan would fail.
v
v + s
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Why have you written a huge blank space?
The easiest and most mathematically friendly way albeit most likely to get you banned, is to make about 5000 government multies. These would be paid 0.10 CC and would reduce the work tax for everyone. This would be complete cheating. But it would make the economy very strong and would make UK one of the best destinations for buying and selling products because Wam costs would be permenantly down and the real average wage would be higher than the average wage that is stated on the economies page because of all the government multies. Note to everyone: Don't try this at home!
99% of poor users (as me ) don't offer jobs for all his companies, we only have to use that dormant capability and start offering jobs at 0.01
min wage 0.10 otherwise great comment
you'd have to get people into those jobs though right?, and I don't think there are enough people even if they did all move
Work tax is not the problem, average wage is. That being said, people better start working for goods.
The only problem with your solution is that its a logistical nightmare to apply. If as MoF were receiving a couple of hundred screenshots, thats more than i have time to process in a day, would be a challenge with 5 deputies...
There is also no way to prove that you have worked all your companies, if they're unprofitable, people may pretend to work them and earn an income through a dodgy tax rebate.
I'll concede this would be fairer than a flat rate rebate, but this system simply couldn't be administered.
If as MoF were receiving a couple of hundred screenshots, thats more than i have time to process in a day, would be a challenge with 5 deputies...
I did state that we need to have more people working on it which is the challenge.
Also if people take a screenshot of the day and there companies worked in, it should be able to prove that they worked on this day, forgive me if i have understood you wrong...
Good article, voted. Do this but combine it with increasing the work tax too. That way the ones that are bringing average salary up will loose their money.
This is also my advice, bleed them dry. Once they run out of cash, they can no longer pay extravagant wages.
Raising the work tax will drive more people out of the UK economy. I have 50 company's, raising the tax will force me to decide if I want to stay in the UK.
A good idea but how do you find out who?
You cannot find them, but with a higher work tax, they will either loose their money or they will stop raising the average salary.
ah I forgot work tax works like income on wages
Yh we could do, that will help us...
What about Income Tax? If we raised this would it take away a large amount of income from people who work in jobs paying £500?
Work Tax replaced Income Tax.
http://wiki.erepublik.com/index.php/Work_Tax
Ah ok. Surely our situation should be used as an example for the admins to bring back income tax for positions on the job market? And to have work tax operate separately.
National minimum and maximum wage, weekends off, dress down Friday's and compulsory sick pay Hurrar.
I wondered how you calculated the profits of the companys. Especially the weapons factory profits seem dubious. Since the WRM price in Uk is 0.03 CC compared to the Q1 price of 0.08 CC atm, there is no profit at all.
The Q's are the quality level for Q1 weps
Even cutting the work tax in half would be amazing right now.
its at 1% already
WE DEMAND 0.5% NAO!!!!!
The solution to the high average wage is simple. Raise Work Tax to 25% until the offenders go broke or drop wages. The rest of us can sit tight and not Manager Work for a few days.
Or perhaps use this scheme while work tax is up at 25%???
Raising the work tax has no additional effect on the person paying the wages. He/She pays the same each day regardless of the tax. Raising the work tax would penalize the majority of the people working in the economy and make several have to decide if the want to stay or move to a more tax friendly country.