Black market - a threat or a bliss?
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by jaywalker71
I am sure all of you, as I myself, have noticed direct marketing in the news. This trend seems to be growing. It is good for customers who are looking for products at best prices but is it good for economy in general in the long run?
The reason for the growing trend is, in my opinion, the high taxes on imported products which results in weakened ability to compete in the market against the native companies. The import tax is good and I support this politics for each country, but as there is no way to tax products which are donated, black market, or direct marketing and business via donations has become increasingly popular.
To fix this unfair competition, we would need to do import taxing on donations across borders as well. Customs agency, that is. Of course, all the companies have same chance to do direct marketing the other way around as well, but what good is market place in that case?
This would fix the foreign donation trade. What will happen when native companies start doing direct marketing instead of using the market? I am surprised it is not used more yet, but I am sure there will be a boom soon enough unless something will be done to control donations.
Maybe another solution would be limiting donating somehow so it would not be used as a method of doing business to avoid sales taxes. One option would be to introduce charitable organizations which would be free of donation tax but to be able to put that in good use donations should be taxable first. Maybe the easiest way would be that governments (local or state) were be able decide which organizations get tax free donations either by gaining that status or by tax refunds.
Anyway, my aim is to arouse discussion about this topic and wake up developers as well as people of eRepublik to think of this and find a solution to set it right.
Let me know what are your thoughts in this matter, whether you agree or disagree, or if you have any further concerns.
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Comments
My thoughts exactly. Donations should have a tax too. Maybe in the form of a donation tax set by congress. The tax should be paid by the person donating the item.
There's no point in import tax when you can go around them like this.
Black market - is a threat only
for a week economy
ps: I am selling moving tickets (Q1) for 0.1 GOLD each
I think that the import taxes should be lower if you want to discourage this kind of Black Market 🙂.
Acmer: if the donations are taxed, the money will be taken 2 times. 1 time when you earn them, and 1 time when you donate them to your friend/s.
Would you like to have such kind of taxes? Be serious!!!
The reason people want to donate the money to each other is an economical reasons: it's cheaper than buying with import tax, there are more money on income 😁.
eliberator: but there is a difference between a donation and a "donation" where you pay to get the "donation".
and how, exactly, do we know which donations to tax? Black market trades often go under the radar...
eliberator: the tax wouldn't be the cost of the item, just a small percent, like 5-10%. If you can give away a Q3 house, you probably can pay the 24NOK tax. It wouldn't stop the market, but limit it slightly.
I wrote an article about this, in Finnish.
I think that I don't sell the houses with tax. Tax was already paid to the country 😁.
And if you will lower the taxes, you could have more happy citizens, which will buy from the market place, not OLD Houses.
Ole Kristian: That is a difficult question, true. I am sure there are ways but which would be the good way, that's another question. Actually it's developers' job to deal with it as soon as they notice it is a problem.
Anyway, my aim was to bring this topic to be discussed as it does have an affect on economy. Especially as often the payment is gold which is... as valuable as gold!
eliberator: With one house that is ok in my opinion but doing business that way is a different thing. Perhaps a private person should own the house a certain period of time, e.g. 2 weeks before being able to sell it tax-free.
I am sure there has to -- and there will -- be change on it's way.
By the way. I sell Q1 weapons for 2 NOK. The cheapest on the market is 2.7 SEK.
i sell my Q1 house for only 1 gold, pm me.
ps.market price is now Q1 house=97.2 NOK