Join the new world

Introduction

The writer of this article is fully military person and has been in politics last time in the fall of 2008 so my economical point of view may be too militarist for some of the readers. In this following article I will be writing my opinion about the US taxes and stuff involving that. I will have some examples about other countries and why the USA should change own taxes. In this article there may be some misinformation because I am not perfect economical ”nerd”. I will explain things as I see them, this is just my opinion how I think we could improve the economy of the US in long term situations.

Simplified

1% import tax allows other countries to sell with VAT only 1% differend to the local companies. That means that all the countries that have weak economy and low salaries when compared in gold can undercut US prices easily, and still sell with a profit when local companies need to lower salaries to make even zero profit. Lowering salaries makes local companies stay competitive with foreign companies. And then foreign companies can lower again the prices until they make only a little bit of profit. US companies need to lower the salaries every time foreign countries come to undercut. Increasing import taxes will make it more equal to local companies.


Income Tax

Lets start the real thing in this article by the most important tax, the one that every citizen in the USA has to pay. Income Tax, the % of money you need to pay to the country everytime you work. Currently this is 20% on every sector in the USA. This 20% mean that if you get paid 5 USD for one days work, you will only get 4 USD for yourself and 1 USD is donated to the national treasury. This is very very wrong in my opinion and now I will use 2 huge countries as a comparison point about what they have, and after that I will tell one or more things about what lower taxes could do to USA

1st example

Poland, biggest country in erep with 36650 (probably changed after I checked) citizen. Manufacturing and land industry has 10% income tax, so half of what US has. On Land sector there are 1% and 4% taxes.

2nd example

Hungary, strongest economy and strongest military country in the eWorld with 15289 (probably changed after I checked) citizen. Manufacturing has 15% income tax, Which is ¾ of US. Land sector has 10% except iron 15%. Construction sector 15% on houses and 1% on hospitals and ds’s.

My own opinion why US should lower the income tax.

Biggest reason that I think would help the economy is to lower taxes to 10%. Lowering the taxes by 10% would halve the amount of money earned through that tax group. With current US average salary (8,75 USD) it would change the tax gain by average worker from 1.75 USD to 0,875 USD. This gives the employee 0,875 USD more every day to spend in example for food or weapons. It would encourage foreign citizens to move and work in the USA because you could earn more money in the states than what it currently is. I know that there are lot of people who have moved away from the states just because of the income tax being so high. We need to stay competitive on that sector.

The amount of tax money lost with lowered income tax would very probably be spent on buying products from local markets which would increase the demand especially in the weapons sector now that there are battles allmost every hour of the day. Increasing the amount of money in the employees pockets usually makes them spend more, which would then bring more Import and VAT taxes to the country.


VAT

The last on my list will be the income tax because I want to write the local stuff first and then reveal my opinion about foreign importers.

Currently US has 12% VAT on food and 8% on other manufacturing products (weapons, tickets,gifts). Raw materials dont have any VAT on them in the game so that sectors doesnt bring it, it will however be in manufacturing and construction products. In construction sector there are 1% VAT taxes.

1st example

Poland, the biggest country has 3% on food, 1% on gifts and 2% on weapons and moving tickets. On construction sector they have 1% vat taxes.

2nd example

Hungary, economical and militarist giant has 5% manufacturing and housing VAT taxes and 1% on DS and Hospitals.

And now my Opinion

US makes quite a lot of taxes through there also, however I would lower the VAT on food down to 8% with other products, the money citizens save on that usually gets spend on weapons or houses. I would increase the VAT on houses to at least 5% if not to even 8%. So they would gain the US somewhat more taxes.


Import tax

Last but certainly not least there is the Import tax that is very f****d up in the USA. Every sector in this country has only 1% on import taxes. This means that foreign companies have to pay the allmost the same taxes than local companies when selling to US, only 1% more is taken from those and with importing companies that is only thing that the states get. Government gets no income tax on foreign companies.

There are lot of "poor" countries in this game where salaries are way lower than in the USA which mean they can make products with way less price than what the US can make. You may think this is good for the states when local companies have to lower prices to international level, but that is not good at all. When local companies need to lower prices too much then they cant make profit at all (while companies in the cheap countries make way more profit), which is the point with companies, that means they have to lower salaries to stay competitive. WHOA WHOA, doesnt that mean less income tax, you may think. Yes, it lowers the amount of income tax in the states, so it is bad for the country.

And for that very reason I am strongly suggesting and hoping that you congressmen follow my suggestion which will be after the 2 examples.

1st example

Poland, still the biggest country, has 99% import taxes on every product they can do locally, except hospitals and DS's.

2nd example

Hungary, still the economical and militarist might, has 99% import taxes on every product they can do locally, except hospitals and DS's.

My own suggestion

Those two example countries have too harsh import taxes in my opinion. It wont keep the international competition anywhat realistic.

My own suggestion would be that on every sector we should increase the import tax to at least 20%, maybe even to 25%. That gives poor countries still a change to sell in the US but it will give local companies more change to make profit.

USA is very big country with lot of companies in every sector. unemployment is somewhat high, but there are lot of employees still around to cover all sectors. and 20% import tax would give the government money for the work those employees have done abroad.

It might raise the prices little bit, but it would bring more money from foreign companies so the lowered income tax would cover the little increase on products. Little increase on product prices increases the amount of tax money through VAT. And increase on product prices usually shows in the salaries. And the lost tax money on income sector would be gained through import taxes. It would keep the cash flow to the treasury stable.

Now I will try to list the pros and cons of my propositions against the current taxes.

-Less income tax
+More money to be spent on products.
+More money gained from imports.
+More money through VAT taxes.
+Higher salaries are possible with more equal competition internationally.
+Income tax increases with higher salaries.
-Prices may increase a bit.
+More stable economy.


This may be a bit hard to read for some, but I hope that most of the readers understand my writing.

I hope that you answer to this article with your opinion that would my idea work like I have written it or is there something I have forgot.


Sincerely,
SuicideOG