Choking to death on Texas

Day 2,106, 16:19 • Published in Ireland Ireland • by Releasethe Krakken

I am so tired of the 5% work tex I considered moving to Texas but apparently they have it worst and I recently discovered besides all their players their but a puny nation on the battlefield or maybe there is just a lot of MU's.

Lets break it down for MOF's who dont own calculators. Lets take 2 players Billy Newbie and Johnny Oldie for argument sake.

The Past: Before our work taxes
Starting out Billy gets 3 FRM factories and a food factory to start:

On this he paid 0 IEP before the change.

He did pay 18% income taxes which would on a salary of 15 IEP be 2.70 IEP

So he paid in total 2.70 IEP

Johnny Oldie has 240 factories and a production of 20000 WRM a day

On his factories he paid 0 IEP

On Income Taxes he paid 18% * 15 IEP also 2.70 IEP

So we can see from 200 Johnny Oldies and Billy Newbies we had an income of roughly 540 IEP a day or 30 * 540 IEP = 16200 IEP a month which is 3800 IEP short of 1 MPP.

This was the old system and both Appleman and Sweet commented on this as follow : our economy is going very well. In the 7 days of the shield competition I got 700 Q7 WEPS the equivalent of roughly 7000 IEP or 2593 days (rounded) of my income tax spend. We can work on averages and even say we got an average of 2500 IEP per citizen or the equivalent of 500 thousand in value from the government. Indeed enough evidence is therefore delivered by these 2 facts of 1 FACT:With Ireland its going good financially.

I even brought you proof of income and resources of over 2,4 million(cant remember the exact amount) but the org information was sourced from a reliable source who chooses to remain anonymous.


Next we will look at Billy Newbie and Johnny Oldie after the 1% work tax.

Billy is now paying 28 cents a factory and with 4 factories a total of 1.12 IEP + 0.15 IEP for income tax = 1.27 IEP which is 1.43 IEP less than he used to pay.

But Johnny is paying 240 *0.28 = 67.20 IEP a day plus 15 cent income tax or 67.35

which is 67.35/2.70 = 25 times what he used to pay. Which means with 1% WORK TAX AND 8/200 players being Johnny Oldies we got the same as we did in the past WHEN: IT WENT SO WONDERFULLY WELL (Sweet Drin ker)

8 * 67.35 = 538.80

4% of players.

It is therefore quite easy to see 1 FACT: With 1% Work Tax we were making more than we used to in our GLORIOUS FINANCIAL PAST(Swee t Drinker)

SO WHAT IS THE CATCH THEN? WHAT DID WE NEED TO TEST?

5% work taxes:

BN = 15 IEP a day minus 0.75(income tax) - (4 * 1.75) = 7.75

or for BN = 51.67% of his daily income. Which means : 7.25 IEP to buy food with @ 4 cent a pop he would have 181 food + 120 food or 300 food with no WEPS.

Billy Newbie is paying 1.43% of what the entire nation was paying.

Billy Newbie will never reach Johnny Oldie except with RL cash or he will reach him at a much reduced rate.

Johnny Oldie

Income 20000 * 0.04(recent market trend) = 800 IEP day or 3.77 gold.

Minus 240 * 1.75 = 420

or 420/800 = 52.5% of his total income. 380 IEP is only 1.79 Gold.

Johnny Oldie is paying in 1 day 77 % of what the entire country used to pay.

In a month he will pay: 12600 IEP

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MORAL OF THE STORY:

5% is a very deceptive number. A very dangerous number. yes for Johnny Oldie

1% was 67.20 or 8.4% of his total income but 5% is 50%.

He is still making money BUT :

CHANGING TACTICS: What Johnny Oldie does and how it will affect our country.

Remember there was 0 DEBATE about the change. There was 0 articles by the MOF.

So a client is suddenly paying half of his income!!!

1. Leave the country. Minimum loss of 67.35 IEP a day to us or 24582.75 IEP a year.

2. Dissolve companies: This will require some explanation-

a. When we used to buy WRM factories a Aluminium Mine cost us 10 Gold a Rubber Plantation 35 Gold. Production respectively is currently 150 WRM vs 300 WRM.

So for 3.5 Aluminium factories your WRM production = 525 whereas 1 Rubber Plantations = 300 WRM.

Most players invested in the Aluminium mine for this strategic fact. You would hit a ceiling where your number of factories of energy consumed would be too much and where you would use your production of say 20000 WRM to slowly buy Rubber Plantations and sell Aluminium mines. At 3.77 Gold a day and the 10 Gold from dissolving 2 Aluminium mine you would need 7 days to gather 35 Gold to change 2 Aluminium Mines into a Rubber Plantation and be able to build 4.28 in a month with medal gold therefore probably 4 to 5 replacing from 1200 to 1500 WRM production in a month. At 20000 WRM production you would probably have to switch out 70% of WRM factories or 14000 WRM production per day. This you would accomplish in 12 months roughly.

I basically taught you all you would need to become a factory mogul the most effective manner to make gold. The poor mans grind to riches.

Now we come to the problem: I need to dissolve and with work taxes so high you will jump to dismantle all your aluminium factories which profit margins was as follows:

150 * 0.04 = 6 IEP minus 28 cent = 5.72 IEP a day

5% = 6 IEP minus 1.75 = 4.25

REMEMBER TO WORK YOU NEED FOOD WHICH IS A NON INCOME PRODUCING ACTIVITY.

Where the state could have gotten 67.35 IEP a day. Many Johnny Oldies will dissolve all of their Aluminium Mines using War Stashes and gold promotions to return to normal. furthermore out will go all FRM factories the price was already at 2 cent so for the 120 FRM you needed you will pay slightly more at 2.4 IEP but obviously will make it up by investing this again into Rubber Plantations. So about 70% of your factories will be dissolved within a few days or 180 factories in JO's case which will eventually be replaced with a total of say 150 factories in total. Losing the country 25.28 IEP a day perhaps forever.

So rash ,unmotivated and undebated actions by the MOF will eventually lead to less income not more. Achab hinted at it with his analogy of a man trying to pull himself standing in a bucket but he lost the plot as he perhaps is not knowledgeable enough to see the effect on Billy Newbie, Johnny Oldie and finally the country in a whole. Of course with 5% we will grow so much slower. Economy 101 the slower your economy grows the less income you have to tax. The slower we advance our economic game the slower we react to changes in the economic game. A slow game for a new player means quitting unfortunately. Also it means over time less Johnny's as well and less Billy's becoming Johnny's.

But what does 1% mean. 1% is a small part of our income we donate to the state but we pay more in the end to the state than we used to. Furthermore we can expand our factories at the normal rate which means the tax apple just gets bigger and bigger. The fundamental fact is that we were doing great so if a change brings at the minimum rate still a bigger income to the state what really is the motivation behind increasing it to a "TOUGH" tax.

Should we experiment? Basically what Apple did is he landed an atomic bomb in peace time. NOT? if you had to pay 50% taxes in RL starting from tomorrow HOW DEVASTATING!!!If your government has a surplus of money? You see it makes not much sense. Perhaps Appleman is bored. IMO he is at the helm to many months now.