AFP Special Edition
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by Moishe
Today one of my employees contacted me asking about his pay. He is paid 20 USD/day (and is well worth it.) His question was about what he actually receives. He only gets 16 USD/day. He works in the Food Industry which has a 20% Income Tax. 4 USD/day is taken from him to pay for the USA government's recent FUBAR (along with its various and sundry social programs.) The FUBAR is the failure of the past President to secure the Federal Reserve. Teacher (of The Party) used that failure to distribute all of the monies in the Federal Reserve to citizens of the USA.
[Insert Definition: FUBAR = frigged up beyond all recognition.]
This article is not about that FUBAR. Neither is it about the failure of Justinious to secure our Reserve Funds or Teacher's betrayal of the trust placed in him as a past President. It is about taxation in the USA.
I am neither a believer in nor a supporter of high taxes. I am also not a believer in and supporter of government social programs. It is my opinion that for the most part they are over-priced wastes of taxpayer dollars. In most cases private enterprise can perform every function better and cheaper than the Government. And yet the Government still screams for more money.
Just tonight I was asked my opinion on yet another Government project. Some want the Government to get into business. That business is making weapons.
Yes, we need weapons to fight wars. Yes, our troops should have weapons with which to fight. I am not opposed to that. But I am opposed to the Government getting into any sort of business that competes with Private Enterprise.
The proposal presented to me was that Government should create four or five Q1 Weapons Companies. Those companies would hire Skill Level 0 and Skill Level 1 employees to make weapons to be used by the Army. Those weapons would not be made available to the General Public for purchase but rather would be issued directly to the Army.
I have some problems with this plan.
1) Skill Level 0 and even Skill Level 1 employees produce very little. I was told that these industries would also provide jobs for those skill levels. Another Government social program. And who pays for that? All the other industries through taxation. Also the employee mentioned in the first paragraph who is giving up 20% of his pay.
But Moishe, don't you believe in helping new eCitizens? Of course I do! That is why I personally funded the creation of H2H Gifts. I provided the 20 Gold to form the company and donated 1000 USD to acquire the initial raw materials and hire employees - all of which are Skill Level 0 or Skill Level 1 personnel.
I believe private industry and our political parties can perform the task of providing jobs for our new citizens more economically than can the Government. We can certainly afford to do it even better if they will leave our money alone and lower the extreme tax rates currently in place.
2) Several months ago I presented a plan to the Quarter Master General in the form of a General Order that authorized the Quartermaster to enter into contracts with providers of weapons, gifts, and so forth. The General Order can be viewed here (I am using a redirect in order to provide a clickable link in this article.)
Benn Dover ignore this plan. Justinious stated in the old eUSA forums that he had presented a similar plan that was ignored. Leroy Combs also claims that he presented such a plan "three months ago" that was ignored. I imagine that our current president, Uncle Sam, a protégé and colleague of Benn Dover, will also ignore this plan in favor of more Government programs and more Government control.
Over the last several months I have steadfastly opposed higher taxes.
I have opposed increases in income tax.
I have opposed higher Sales tax (VAT).
I have encouraged protectionism for our American companies through higher import taxes (similar to those imposed by other countries.)
All of my attempts have fell upon deaf ears. Perhaps the voice of the American People will accomplish what I have not.
Write your congress person. Tell them your demands. Tell them you are fed up with Government subsidized programs that accomplish nothing other than take your dollars.
Watch who posts comments to this article. Watch the proclaimers of support for higher taxes. Those are YOUR dollars at work. The least you can do is demand accountability for them.
In the past few weeks I have posted several articles condemning the acts of Congress re higher taxation. The most recent was last night. I got so fed up with the negativity and accusations of being treasonous and non-supportive of America that I deleted the article. I regret that action.
Shameless plug: Over the last six months as a eCitizen of the USA I have donated thousands of personal dollars to gifting troops. Would those troops please post a comment and subscribe? Over the last several months I have dedicated myself to the eUSA through organization of the Army; through creation of an Army web site; through service to our eCitizens and never taking a DOLLAR for myself nor asking any recompense.
I have many friends in the eUSA. Many agree with my philosophies. Many disagree. Even those that disagree know one thing - Moishe is an American that believes in America and believes we are the greatest eNation on this Planet!
Please Vote. Please subscribe. Please shout it out.
Thank you, my friends! I love you each and everyone!
NOTE: Our last article received over 240 votes. Let us take this one to the limit!!!!
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Comments
Congress knows more than the average eCitizen. If you do not believe me join the eUSA forums and read the posts there. The link is
http://eusforum.com/index.php
For the "Congressional Forum" it is
http://eusforum.com/index.php/board,3.0.html
NOTE: There is some bruhaha currently due to someone not knowing how to add an image or something. And no one asks Moishe (who does that stuff for a sideline.)
I agree with this message. mindflay for congress Feb 09 (Washington)
BTW Moishe has helped me personally several times and he is a wonderful person to work for as I have worked for him in the past.
Third 😃 😛
Voted. I agree that taxes in the eUSA are too high, I moved to Canada to start a diamond company to import back to eUSA --- thought I'd be gone 2 or 3 days, because of the tax increases I think I'll extend my vacation for a while.
@Bienville: I formed a diamond company in Canada soon after the advent of V1. It shipped to the USA for my gifting company. The USA immediately set a 99% import tax causing me to sell the company.
Ironic that the current Congress has no desire to protect USA companies. Their philosophy is if they can't sell as cheap as foreign companies (with cheap labor and low taxes) screw them.
Its important that we keep in ind how many of our current congressman and government actually own foreign companies also 😉
Its called profitering and it would seem they are using our own government to line there pockets. While the tax payers pay all the bills they take advantage of cheap labor and undercut demestic companies. Sence congress doesnt seem to care I just make sure that I personally buy eAmerican. Iam proud that my USD's are going to pay an eUSA citizens wages.
And low import taxes assure their income. Notice how many other countries have 99% import tax? But mention that in Congress and it is like you screwed the virgin mary....
no I do beleive you are right, lol.
Edited for vulgarity purposes. I try to avoid such.
I think we need eUsa owned businesses in countries and regions with high productivity in diamonds and iron and there should be a low import tax on those commodities.
@Bienville Your right. Have a look at our taxes however and you will see that both of those are at 1% which is not bad. the problem is that we have a strong market for those products and we also do have some companies producing those products in our own country and we should not turn our backs on them so a tax of 15% (import) would not be unreasonable for both Iron and diamonds and it would give our demestic companies some breathing room so that they can remain competative. All the other products we can produce just fine without foreign products being in our market so basically we are just giving them an oppertunity at the expence of our own demestic companies and our citizens. All other import taxes should be much higher then 15%
An argument for low taxes and high tariffs is not a free-market argument, but rather a protectionist one. If I had to guess, Moishe, I'd say you are not a financier, but rather a Manufacturer. Am I right? Brings to my mind old school New England Republicans and Pat Buchanan. I.e. a Paleo-con position. Why are you a member of a center-left Party?
Moishe makes me purr.
Moishe I might not always agree with you but I do have great respect for you!
In Ireland we have state-run business in each type of company, and we only hire 0 skill workers in order to get their productivity up. It get's the US a stockpile of items to use in an emergency, and helps companies on the whole because they do not have to hire them.
In Ireland we have state-run business in each type of company, and we only hire 0 skill workers in order to get their productivity up. It get's the US a stockpile of items to use in an emergency, and helps companies on the whole because they do not have to hire them.
Moishe you are the greatest!
I agree 100% Moishe. I plan to use my surprise VP pick to add another voice of difference. Man I wish you would come join us at the CVP. To those of you that might of missed it, Some of the most powerful nations in this game have a 99% import tax. They are profiting enormously from our market. While maintaining allies in the world is important, and a top priority of Uncle Sam, I believe Americans come first. We should use our market to profit from our neighbors in this world. The current levels are good for competition,yes but I don't think it should come at the expense of our American companies or our Citizens.
I have been screaming this for awhile now. RAISE IMPORT TAXES, lower the income taxes, allow our citizens to prosper, not our competitors. Just my two pennies.
Wretched... Thank you Moishe!
Quote from: tdwester on February 05, 2009, 02:14:43 am
One Eye your numbers again amaze me. But there is another issue, the voters we have to answer to. If we raise taxes or go back on our word of lowering them the backlash will be very loud. I agree we need to keep taxes higher but it is getting the avg citizen to understand.
quote from: Justinious
They dont need to understand. They only need to accept and trust. Congress can't be impeached, and any new people who come in will see and learn.
Good article friend! One Eye was touting this as the answer to all that ails the US on the eUSA Forums. Stating that taxation of 20% with a VAT of 20% didn't hurt the noob. Further insinuating that business avaiding taxation is the common place and therefore this wouldnt hurt the business owner. But what hurts one hurts all!
@Boss_Khamzi: I have predicted and still do that taxes will NOT go back to even the rate set by the CTPA. They will go up. More things will be seeing a 20% income tax and 20% VAT (sales tax).
The government wants to get into the weapons business. Just Q1 (supposedly) but watch them. Those companies will get upgraded "because we need more higher quality weapons!"
Then it will want to get into the Q1 food industry "to provide jobs for skill 0 citizens".
Having the government run those companies means they will run at a loss. That means tax dollars to support them. That means even higher taxes for other companies. Once we step out on the slippery slope of government-owned businesses it will be hard to stop it.
@To Mega Therion: I joined the USWP at the urging of a couple of good friends. It has been a merry ride as I am often at odds with the party platform. I gave the Party President a notification of my intent to resign so they could find someone else to manage the Hand to Hand program. On the 10th I am changing parties to one more in line with my POV.
We already have:
Monthly exports 397.63 Gold
Monthly imports 57.25 Gold
Do we really need higher import taxes?
I'm still looking for someone who wants 0% VAT taxes (or the minimum possible: idk if 0 is allowed) and a flat rate on income taxes over all products.
While, as usual, we have have some points of disagreement regarding tax policy Moishe, excellent article overall. Voted and subscribed.
You want to know the best way to cut expenditures? Read this:
http://www.erepublik.com/en/newspaper/the-drunkard-149881/1
To all of you who think that lower import taxes lower the price of products to American citizens cut the bull and look at the facts
http://www.erepublik.com/en/article/relation-between-import-tax-and-strength-of-local-currency-730924/1/20
USA
Cheapest q1 Food- 1.61 USD (0.02415 gold)
Conversion Rate- 0.015
Import Tax- 15%
Romania
Cheapest q1 Food- 1.32 RON (0.02376 gold)
Conversion Rate- 0.018
Import Tax- 99%
Indonesia
Cheapest q1 Food- 0.75 IDR (0.2075 gold)
Conversion Rate- 0.027
Import Tax- 99%
All those countries also have lower income taxes. And if your going to go and cry its all franco's fault keep in mind the markets have been like this since December, a month before the theift of the tressuary.
DF, for one I'm not sure how applicable those figures are, as the correlation between import taxes and does not imply the causation of high food prices. If you want the quickest way to lower the prices of food in the US, it's to raise the value of the USD.
@Desertfalcon: Comparing these prices without taking out VAT taxes is completely meaningless. Who buys food Q1 will not travel to Indonesia to buy food.
With your numbers
USA
q1 0.02415 gold with VAT taxes (15😵
q1 0.02100 gold without VAT taxes
Romania
q1 0.02376 gold with VAT taxes (10😵
q1 0.02160 gold without VAT taxes
Indonesia
q1 0.02075 gold with VAT taxes (1😵
q1 0.02054 gold without VAT taxes
@ all
Our economy has a GDP of 2404.79 gold and you are talking about protecting it from 57.25 gold of imports? It is less than 2.5% of our GPD!
I very much favor the idea of gov't contracts for needed military equipment. I drafted and forwarded to Justin just such a contract for moving tickets. I created the company and used all personal funds and most of the production was done by Marines who volunteered a few days here and there for 1 USD/day. The idea was to create a "not for profit" company that would have a ready supply of tix to mobilize the Marines on short notice, but I've come to the conclusion that such government contracts are unworkable for 2 reasons.
1. For the amount of money needed to supply the entire military requires Congress, not just the President or QMG to act. It's unrealistic to believe that Congress as whole would act or vote on each contract.
2. More importnantly, there is really no way to enforce contracts in the game. I put in my contracts clauses requiring disputes to be resolved in Scrabman's US Courts on the forums. But realistically, we can't expect the Admins to begin resolving complex contractual distputes. It's easy for them to enforce loans of specific amounts, but contracts for the delivery of goods is way more cumbersome because in order for the contract to be feasible, the company has to hold the items in stock and also have some guarantee of money. That puts all the cards in the companies hand, they hold, at least some of, the and the goods.
My conclusion is that regardless of your RL views on taxation or government owned business or whatever, government supported business is the only practical way, in eRep, to insure we have adequate supplies and stores of needed equipment. Just look at the last PEACE/Atlantis Wars, we were scraping by to get weapons to our soldiers because of price increases and scarcity. We can't let our RL ideologies hamstring the eUS militarily.
If there was a way to ensure that government sticks to ITS part of the contract I might be willing to compromise on something like government-owned weapons companies. But will it stop at Q1 weapons companies? The price of moving tickets goes up quite a bit during war. Maybe we should have some government owned moving companies? Oh, and our troops definitely will need gifting. And food. And some houses would be nice. Where does the ball stop?
Now, on weapons manufacturing. Let us say the government company manufactures 1000 Q1 weapons. How do we get them to the troops? Well, they have to go on the market and be bought by the government. What stops an enemy from watching the market and buying them also? Since the money goes back to the government do we price them at a super high price?
Now, do those people that work for the government pay income tax? If so then they are actually getting paid less than they think because those taxes go back to the government. If not then isn't that favoring a government company over private enterprise?
Even in eRep once you start government programs they will snowball into something unrecognizable by those that founded them.
Except in times of war it is beneficial to the consumer for import taxes to be as low as possible --- it leads to lower prices. Without a single "High" region in iron or diamonds it is more productive to import those RM's and export the finished goods. If you increase the import tax on those RM's you increase the cost of production offset either by lowering profit or lowering wages paid.
If you want to "protect" eUSA businesses at the expense of the consumer then and only then is raising import taxes on iron and diamonds justified.
Our government needs to support its own people not compeate with them. Goevernment owned companies takes a part of our economy and makes it national insted of private. Private companies represent growth for all of the US and national companies represent the oposit. Yes I know that prices went up during the last war and rightly so, these people are in business to make money. The unforntunate part about all of this is there is no practical way to stock pile unless the companies hold the stock for the government. With that said I beleive that contracts are the best solution to this problem. The government should develop the contracts and then offer them to the public insted of the private companies offering the contracts. Our economic council should be able to handle putting together the contracts with some legal help from scrab. The companies bidding on the contracts would have to not only have the supply of weapons already in stock but would need to hold those weapons until they where needed. We should also biuld a starting supply with our military forces. Remember the trust thing justin was talking about well, we need to trust that our men and women in the services will hold there own weapons for battle to some degree.
@Bienville I beleive everyone here understand this but thank you. Iron and diamonds have been a hot topic for a while now and they are two things that we can never hope to produce enough of on our own so we do need to import them. the question is do we abandon our current demestic comopanies that are trying to produce these items for us and then if we do that we would also leave ourselves compleatly reliant on foreign goods for these two industries and that is not a good thing.
Except in times of war it is a great thing --- those workers would move to more productive industries increasing the wealth and efficiency of the eUSA. Those companies should be mothballed and only restarted in times of need.
The country and those workers would be better off if they were employed by an exporting industry or at least an efficient industry.
WOW, you put me in a tuff spot here buddy, lol. But, I have to agree with you. These two types of companies I would not have to much of a problem with them being government owned and opperated simply to provide jobs for low skill workers and also to build up a stock pile of the RM that we will need most during times of war
Lower taxes would put money into the hands of the poor here. I make two dollars a day, and spend roughly 3/4ths of that on low quality bread that barely helps increase my wellness. The taxes on food, combined with low wages is actually killing me. And since I won't be eligible for a pay raise (by switching companies) until I reach level three in my construction skill, it will be a long time until I'm actually able to afford anything.
Its alright Sam we have all been there man and we understand how challenging it is. Wow now that really did not feel natural, lol.
If that sounded condasending my friend Im very sorry but it is true at least for me. My first couple weeks where hell and I kept wondering to myself why the hell I joined this game. lol.
Now here Iam 2 months later and doing pretty well for myself, Ive educated myself at every oppertunity on the game and how it all works and most importantly the people in the game. I cam into the game during the Benn Dover presadency and was able to see how our nation runs during war times and now I see the peace times. Times are tuff right now but better days are coming. Get involved and stay active and you will do well.
Well, what really stings is that my Spanish buddy is in much better straits than I am, due to low food prices and better pay; combined with the fact that the Spanish whatever is stronger than the USD.
Wow Socialism still prevails in Erepublic?
yes do to recent problems with the federal reserve the eUs is not handling this slow down as well as some other nations. It is my hope however as well as some of the others that have posted here that this will begin to change soon and the tax side of this at least will be lifted from our shoulders.
Is it possible to ensure that something other than hope alone will assist in lifting the Tax?
Especially since it seems Congress voted to retain the Tax four days ago...
>Not Caring
lol @ Florida Commerce Bank. Voting, watch carefully who you vote for in the upcoming Congressional elections. Congress controls taxes and as such the people control taxes with there votes. If we want to change things then we need to get the same old same old out of congress and bring in some fresh new ideas and fresh new congressmen. We need to replace some of the people running this country its as simple as that.
We need a lot of new people and new ideas in Congress. It is my understanding that the Presidency has devolved into a first of equals --- that makes each member of Congress almost as important as the President.
Around 20 of the current members of congress received 6 or fewer to get elected.
Having several Government owned Q1 diamond and iron companies that trained new eCitizens to skill 2.5 or 3 that stockpiled against a rainy day is a good idea. It kills several birds with 1 stone and in the long term might come close to breaking even. It takes the burden of training new unproductive workers off of business which should increase wages for skill 3 and higher thereby increasing income tax collections. A real trickle down effect.
Agreed.
Voted.
Subscribed.
Power to the people - it's not just a wish, it's a threat. 😆
If businesmens profit is in front of geting new peple in the game, then ok, dont help the new players, dont have an gowerment own food company or even gift coo insted to help new players to make some mony from the start, which would probably get them to stay in the game, but as the things are now many of them live after 2 weeaks, when they see that there is just nothing to do to get some mony to stay on their acc after buying food and rest they need
This is only vaguely related. Just out of curiosity — why are there almost 30,000 Greek Drachmas in the US treasury?
I'd wager it's a hilarious story about how they got there.
I guess we should just hold onto them? Maybe someday they'll be a tradeable currency again.
I remember they said they would only keep the taxes until they got 400+gold and they have that now(well it actually 398.xx when i worte this). So Im hoping that it wont be long until they change it back.
Ack, I couldn't agree more. I only make $8 because I haven't gotten but so far just yet and even that gets cut to about $6 measley dollars and I have to deal with it and get Q3 Food to help boost my wellness. I agree with Joe DaSmoe and raise import taxes and lower income. Alot of the countries right now are doing that as well though and their import taxes are INSANE. I believe it might have been Spain's import tax on wood and it was like 90%!