Greetings citizens of the eNetherlands,
those of you, who know me, know very well I am fighting for the minimal taxation ever since I came to eNetherlands. Just a year or so before, this country has abysmal 4% Work Taxation (one of the highest in the world), making itself non attractive for people to produce. Today, we are at half of that - at 2%. And surprisingly, despite lower taxation, the tax income of our nation did not fall - on the contrary, it increased, and that's why this month the Government has a record budget of over 1,3 million currency.
How did we achieve to keep our tax income stable with taxes decreasing? When I became Minister of Finances, I have devised a simple graph, which can be used to deduce the exact moment, when Work Tax can be dropped by 1% without causing any harm to the budget. The graph might look ugly at first due to the lines being... well... zig-zaggy (due to events, concessions, etc.), however it is great enough to follow the general tax trend and study, how the change of tax can affect us. In general, I have set up one rule:
- The decrease of Work Tax should not put our daily tax income below 10 000 currency, so that our budget, with concession income, can be around 800 000 cc per month.
As you see below, when we lowered our Work Tax from 4%, respectively 3%, we have managed to comply with this rule, and our tax income usually returned back to its pre-tax decrease levels in next few months. And the same situation is happening now. Combined effects of Black Friday and Build Your Own Stuff! (when the government supported players to build companies, bringing more tax income while doing so), bigger activity of our players (including few producers, who have come here from other countries, who have installed high taxation recently), and a renewed inflation (though not as high as in previous instances) pushed in the last few months our daily tax income above 20 000 currency. And these 20 000 cc are the exact point, when lowering the Work Tax from 2% to 1% (= by half) causes our tax income to change to 10 000 cc (=half of 20 000 cc) (.), complying with the rule of budget protection I have written above.
(.) The change will of course not be exactly half, but lower, as other taxes, which also contribute to tax income, will remain the same for now
So, without any further ado, I have shown, why now is the ideal time to lower Work Tax, without causing any harm to our budget and our ability to run programs. We are at tax numbers and budgets, when we can afford it, and we can finally finish our quest to make eNetherlands an ideal place for producers, hopefully enticing them on expanding their production even more than before. To add a few more reasons, why to do so:
- With the state bulding more communes (two more have been built since Novemeber, and another will be built this month), the necessity of budget spendings for MoD (the usual biggest budget recipient) is actually decreasing. Overall, the general goal of this and future governments should be to build enough of communes to make MoD totally independent from our budget, meaning it can run its programs at all times.
- Some people might say "Why lower taxes? Why the government simply does not spend more?" Well - lowering taxes is the easiest form (for both people and the government) of government "spending", giving money to our producers instantly every single day. And about programs expenditure - at this moment, the expenditure on our programs is set on quite fair levels, especially after the recent upgrades. And the best way, how to further increase program expenditure, actually lies in higher activity of our players, and in more players asking for subsidies from our programs. And that's something you, the citizens, need to do, as the government cannot force you to apply for programs.
To sum it up - I would like to officially use this article to start a debate to lower our Work Tax to 1%. I will post this article in the Congress message and on the feed, and after debate period, request the Congress to start a vote. And I count on your support to make this nation better for our citizens, by taxing them as less as possible!
The concerned Country President of eNetherlands