[Congress]Financial Discussion and Taxes
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by Joku Gones
Taken from the thread started by Iain Keers on the eUK forums, Wednesday 27th
Yo
Can we please have a financial discussion topic. I'd like to hear from the government:
Our current income (average daily income this term if poss)
Our current expenditure
Our predicted expenditures
As far as I can tell we are currently only spending money on MPPs, yet have some of the highest taxes in the world. We're not only isolating ourselves from cheap goods produced abroad, we're also punishing domestic consumers with punishingly high VAT which is pushing them to either go abroad or into communes. It's harking after an old statist economic methodology which no longer applies.
Subject to a MoF report, I recommen😛
VAT reduction to 5%
Import tax reduction to 10%
With the possibility to reduce VAT again later if necessary. How do I justify this? At the minute the UK citizenry pay over the odds for weapons. A lower VAT will reduce weapon prices (currently 7.39, under new system 6.75) to a more reasonable amount. The loss in tax from our producers would be more than compensated by foreign sellers, who would be paying 15% tax to sell through our import tariffs.
I'll guarantee this experiment for 2 weeks- in other words if we make a loss which means our predicted income does not cover our predicted expenditure, I will pay the difference myself. After that if it fails, it's easy enough for congress to put taxes back again.
Thoughts?
I'd like to hear from congress on this matter as the power of taxes rests firmly in your hands. This is more likely to be dealt with properly in the next CP term anyway when you will all still be relevant. As a non-sensitive discussion, I'm bringing this out of the congress pms so that all of congress can see and contribute and so other members of the community can as well.
Original thread
Sorry for the lack of aesthetics, I'm posting this in my lunch break before my labs session
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Comments
Voted. My personal opinion is that I should be void of tax as a natural treasure. A view that is shared by both Iain Keers and the late Jimmy Saville.
When we are making a loss on just our mpp costs, obviously we need to do something. I think cuts to our mpp stack should be a last option and as Iain is guaranteeing it, we won't lose anything by trying.
I'm in favour.
'I'll guarantee this experiment for 2 weeks- in other words if we make a loss which means our predicted income does not cover our predicted expenditure, I will pay the difference myself. After that if it fails, it's easy enough for congress to put taxes back again.'
there's no arguing with that
We may as well experiment with alternative tax levels, especially if loses are insured.
I say go for it, we might put some life back into the economy.
But I fear the poor economy is down to plato more than anything.
Voted and supported
So we are already losing money and the answer is to keep lowering taxes?
supported Alphabethis' idea of reducing import tax to 5-10% and see what happens, thanks Keers.
we must try the financial hub option for making money. Low VAT would be nice for selling-reselling.
I will support this as we have a safety net, so, we may as well experiment.
I disagree with the initial premises, i.e. that our taxes should be lowered because we do not /currently/ have high expenditure, as it suggests there is no need to build a fund-bank for the future. In relative times of peace, like now, we should be building up our Government's resources. And then we can act to lower the cost of weapons when we need them more urgently.
Also, thinking long - very long - term, we also know that the admins are /finally/ working on improvements to the eRepublik module and the country should be in a good position to cope with these when they happen.
However, as this experiment is supposedly "no-risk", then sure, why not?
Congress member: I agree to this as an experiment especially if it is covered.
Strength and Honour
As a concerned citizen I would rather Iain didn't reimburse our 'losses' (seems to always offer cash to sweeten his proposals). As technically we wont losing any of our cash reserves...
I don't think we need this tactic to be insured. I'm in favor of lowering taxes personally.
I'am in favour of increasing taxes
I'd be in favour of trying this
Its not like the government has high expenditure outside of MPPs, and they need reducing
Lower prices could actually see more taxes gained as strange as that sounds as people will be willing to buy more