How to help new players and the government at the same time
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by Danie Fox
I would like to start by asking if we can afford to spend more on a single battle (£274,766.00K) against Portugal than we did on everything combined in November (£205,096K). We're going to have to supply for all of the RWs too, it seems, so this venture is going to be ruinously expensive.
The answer is yes - we can - to a point. We've built up some healthy reserves over the last few months, and it would be boring not to spend any of them. The war has its purpose of course - we all love a good fight, and it should improve our relations with Spain, but we need to be realistic about our finances, and try to find ways to improve them.
Whilst I wouldn't say the money is being wasted, as it helps our allies, it is looking be extremely costly - and that's not even allowing for all the RWs we'll have to supply for.
Those of you in favour of tax cuts may want to consider this for next month.
I propose increasing import tax on raw materials to cover some of this loss. The current rate of 2% is lower than even the rate of income tax.
Increasing this would allow new and old UK players alike to compete better with countries which have a lower rate of income tax than us, without increasing prices - a 10% rise would increase the cost of food raw material by 0.003 GBP, an interval too small to be reflected on the market page. Raw materials companies are the only profitable ones available to new players, helping them out-compete rich players with foreign citizenship will benefit the UK as a whole.
I'd like to suggest a new rate of 5%, in line with our income tax rate, rising further at a later point if it increased our income without any significant adverse effects.
Thanks
Danie Fox
[edit] Here's the link to the proposal: http://www.erepublik.com/en/main/law/United-Kingdom/121212
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Although I see the point of 'it can't do any harm if tried' I still think it will make not an ounce of difference. WRM is so cheap now there is almost no price variation
That could change in the future with the updates mentioned in the Erepublik Summit recently, it would be nice to be able to profit from that. As we'll probably always have a lower resource bonus than countries like Poland, we should be able to profit from that occasionally.
They make 10 FRM and 10 WRM for every 7 FRM and 8 WRM made in the UK as it is (due to our respective resource bonuses), that should allow them to undercut us if the economic module worked properly.
V
I'm up for it!
I agree with you on the expensive part, i still don't see the point in supplying players weapons really (especially older players)
If we rose import tax i think we may bring in less as who is going to sell to a market where they had to pay tax?
If you can make raw materials more efficiently in country X (say Poland) you should be able to make a profit by selling in country Y, and as long as the import taxes aren't very high this should make both the person and country Y (the UK in this case) some money.
But i'd imagine there are quite a few countries like eUK whom don't have as high bonuses as Poland and have 1-2% tax rates so why would they still sell to the eUK if they had say 5%?
(i could be wrong, just an assumption based on the amount of countries)
We dropped Import Taxes on RMs because the bot was buying everything up and that's not happening anymore. We've got enough local supply, so raising them isn't going to hurt anything.
If you want to try and squeeze a little bit of money out of RM Imports, set the Import Taxes to 6%. That's just enough tax to 'hide' the tax collected amount below 0.01cc (tax collected on RM imports at 7 CC/unit = 0.0040cc) while at the same time making the maximum amount of money on imports. Since the price of RM is globalized, no one will be willing to export for a lower price than they can get just selling RM in their home country.
For every 100,000 Imported RM bought at 0.06 CC/unit @ 6% Import Tax, the government would make about 340cc in taxes.
It's not a big amount by any means, so if the gov wants to lock RM imports so UK players get first priority (now that the bot is gone) just put them up to 99%. Anything higher than 10% Import Tax is effectively doing the same thing anyway.
OK, I'll propose that.
o7