Let's talk about...ECONOMY
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by T.A.X.S.I.R.A
Hello Australia
I am writting this article because i have some proposals : making changes in taxes !
1.Work tax
If you remember in first days of February average wage was 65-67 AUD which means we paid 2 AUD for each company we worked as manager...Today we pay as tax only 1.4 AUD because average wage 46.76 AUD.
My proposal is to raise work tax from 3% to 4%
With this % we will pay as tax 1.87 AUD for each company we work...and of course we will more pay a bit more tax from our wages..but these money are going to australian treasury so this isn't that bad
I am proposing this because i made a calculation of last 6 days income. Australian income for these 6 days is 17302.47 AUD which means an average of 2883.75 each day and i know days before daily income was over 3000 AUD
2.Import taxes
Now with game updates everybody can see which products are imported easily and in australia are many imported products...which is really bad for australian producers...we are forced to keep our products in storage for days because we can't compete with producers which has 100% bonuses in their countries...or we are forced to sell them with no profit(weapons mostly)
So i propose:
Food Import Tax from 15 % to 18%
Weapon Import Tax from 10% to 12%
This Low raise tax will not effect or will effect very little in actual product prices
Also i propose lower import tax of
Weapon Raw Material fron 15% to 10%
House Raw Materials from 15% to 10% to help our producers buy their materials cheaper and lower the price of houses
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just to inform you i am an immigrant here and i don't have an australian license to trade yet so i am thinking for you not for myself 😃
COMMENT AND GIVE YOUR OPINION AND IDEAS BELOW
REGARDS
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Comments
This is my own individual opinion, not as MoF.
4% Work Tax - Personally I'm in favour. As long as the average wage is low, it would bring the manager work tax up to about $1.80, where it was before when the average wage was higher. We can always lower it again if the average wage goes up. I know not all in the government would be in favour of this proposal but my vote would be yes. You are right to infer that this is the main cause for the drop in tax revenue.
Food Import Tax from 15 % to 18% - I think there is room for an increase here. Presently eAustralian producers do a reasonable job of supply, given our 60% bonus. There are still gaps in the market on occasion, but I have also noticed some international producers edging in where there are no gaps. I'm not sure if we need a 3% jump but I'm willing to trial it.
FRM & WRM - our local producers are already selling at international rates, lowering the import tax would be counter-productive.
Weapons Import Tax - I proposed the lowering of this from 15% to 10% last term because we are often unable to fill supply on reasonably priced Q7 weapons and a lot of people were buying overseas, hence we were losing both tax and revenue for producers. Due to global inflation in Q7 after the recent damage booster and day 3000 events, local suppliers have easily been able to compete, and there haven't as yet been many international offers for Q7 posted in our market. This still needs time for prices to stabilise before we can gauge its effect. I realise that Q1-Q6 weapons are a different story, but they don't achieve anywhere near the demand or revenue of Q7.
TL😉R:
Yes to 4% work tax
Yes to 18% food import tax
No to the others
The proposals would be more likely to succeed as individual bills rather than lumped together in the one proposal. As each senator only has 2 proposals per term I realise you can't propose them all individually so I'd be willing to sponsor one of the two bills I'm in favour of.
I am just going to do it the easy way
Yes - raise work tax from 3% to 4%
No - Food Import Tax from 15 % to 18%
No - Weapon Import Tax from 10% to 12%
No - Weapon Raw Material from 15% to 10%
Yes - House Raw Materials from 15% to 10%
Now I have time and could be bothered,
Yes - raise work tax from 3% to 4%, This may give us a small amount extra in the coffers for now but needs to be looked at to reclaim off the larger WAM sellling elsewhere.
No - Food Import Tax from 15 % to 18% Quickly the best price/energy http://prntscr.com/aajcz5 in eAus is fairly competitive already (note Q4) http://prntscr.com/aajda1 now if we increase we push out of our market the overseas vendors that are keeping our vendors honest. (also note: our products are not in-line with overseas prices but in-fact higher than should be)
No - Weapon Import Tax from 10% to 12% No point doubling up the reason but 😁😁^see above (note: thanks Ilene/J Seemore for helping out on the Q7 sales side of things)
No - Weapon Raw Material from 15% to 10%, This one is really a doozy. Congress said yes to Boss Bucks, so we will now vote to increase WRM when we have just given out country gold to have people start WRM factories?
No, just no. Let our members have something even if that cream is 0.01cc above the fair market value
Yes - House Raw Materials from 15% to 10% Only saying yes to this as our housing market is quite poor and it may help. I have purchased houses overseas and then added to market here at 50cc more than I paid and then got under-cut by another local who originally had prices 400-500cc higher. Let’s see what this does.
Good point about keeping out suppliers honest. I now recall that this point has been made by others before, and given occasional low supply on cheap food the point still has merit.
On the HRM. I agree our Q1 house prices are regularly above the international average, but HRM are only 0.21 compared with 0.20 globally. It only equates to an extra $10 on a Q1 house which I'm not sure would make much difference. Similarly a drop to even a 1% VAT on housing would only mean about $9 less. I suppose we could drop both for a potential $20 decrease, but even so, building houses would still be more expensive than the workers who build those houses could earn in overtime. You need a 40% housing bonus before things start to look solidly economical. It's something that needs more discussion.
Yeh house manufacturing does not affect me but as said I do buy overseas (for my own use) and extras I have dumped on the market. So only doing it to see if there is a trend that can be broken or if it could benefit us
I'm not sure if selling a few more houses would make much difference to the economy under the present economic climate.
A 40% housing bonus however, may have a bigger effect. It would mean that housing contractors with both a Q1 factory and a Granite Mine could offer $70 wages and build a house for $450. Even with VAT on top of that international competitiveness would still be possible on a slim margin.
Of course $80 Job offers in the market would impact on volume a little, but at least the few $70 workers in those housing companies could work twice a day and not be worse of financially than working once a day. It could have big potential flow on effects for the economy as a whole.
Where we would get an extra 20% in housing would need to be investigated, along with the 20% weapons investigation on the cards. These will likely have to wait until next term due to MoFA issues experienced this term.
Being a small community and not being known on the world stage for constant region bonuses it is a difficult task to call which bonuses we want and which to stay away from in regards to offering jobs out. Don't forget that when someone picks up a worker, somebody else loses a worker. (in general it is an Aussie worker due to the point made at the start, we are not in the limelight)
My 2 cents as a producer:
Work Tax raise = Yes (it means I pay more, but it is about the country as a whole, not me, so I am for it)
Food Import = Yes (We have food bonuses and producers, we can make it more competitive for them and help them)
Weap = Yes (it is a small increase and something that will help local producers)
Raws = Yes (mainly with the WRM so we can try an encourage lower prices from the bonus regions to help our weap industry).
All in all, if we are going to raise local taxes (work tax), we need a reward for those who produce.
I say yes to all
Wages are going down but bring the taxes up? WAT?
i say no to that.
all emports should be bumped u to about 1.5 to 3 percent max. maybe encourge more buying for local companies and keeps money local.
The likely reason the average wage came down is because of increased commune activity. An increased number of minimum wage commune jobs, many partially designed to evade tax, will decrease the average wage, and hence the manager work tax, something the treasury is heavily reliant on.
There are still, as there have been for a while, plenty of high paid jobs on offer, there was a brief trough of $60 a couple of weeks ago, but generally the top offers have been $70-80, with even some peaks at $85-90.
Just try it, give it a week to 10 days and see what happens, if it fails then return it to where it is now, there is only one way to find out.
Speculation and guess work never is accurate, so give it a shot, it's how I managed 6 tax changes in 8 weeks and came up with the system that lasted well over 6 months, times have changed a little and tweaks need to be made, we have nothing to lose 😉
It takes more than 10 days to gauge the effect of changes, especially when the market is in constant fluctuation and business investments are long term
Some analysis of existing conditions, engagement with all the stakeholders, and educated guesses can go a long way.
bullshit, if you run 1 thing per time per month you never accomplish anything, it takes a few days for things to settle then you get numbers, if you run ideas for more than 2 weeks you miss the boat on the world economy
And get an Aussie licence 😛
I have like 30 something that I can still activate, should I and in which countries?
I've never seen you sell anything on the open market Henry. Ever. Hospitals don't count...
Until you can't sell all your daily product on the Aussie market it isn't worth exporting, IMHO.
I've had 25k Q5 foods on the market for months .....
At 1 CC/unit?! You're twice the price you should be!
Capitalism ftw \o/
In cases like these, I find the most useful question to ask first is why. Why should we put more money into treasury?
The short answer is that we need it. At abou 2300/day average income treasury takes about 70k CC/month. That is, it covers seven MPPs. Give or take a bit. We have eight, plus Romania and Serbia to pay for if and when our South African TW ends.
Why should we increase taxes? Because treaury needs the money to cover predicted expenses for the next month.
Revenue is only half the story though, expenses being the other side of the ledger. That means we cut our MPP stack down. Without cutting expenses, we need to find about 30k/month to meet our requirements. That's 1k/day.
The changes this month are a useful calibration tool. We lost 750 CC/day when WT dropped by 0.55 CC/company. Suggests there are about 1350 regularly used companies in the nation. More likely a few less, because the commune's arrival probably brings the small amount of WT per employee and a large number of WaM companies. Let's say there are 1200 regular WaM companies, for round numbers.
A WT payment at 4% is 1.87 CC/company, compared to 1.40 CC/company now. That's an increase of about 550 CC/day, plus a little bit more from extra salary taxes. Let's say 600 CC/day, because the ratio seems to be about 10:1 on my experience. Only gets us a little over halfway there...
Extra revenue will need to come from somewhere. Import taxes are very hard to gauge the impact of... Most people buy Q7 weapons and houses. The cheapest goods are available locally. Some people buy food, which is also available locally at a competitive price . Maybe in RMs it would make an impact? I cannot see us generating 400 CC/day from RM import taxes though.
VAT changes are the most difficult to predict. It would be best to leave them well alone for now.
What other options are there, besides cost cutting? Minimum wage settings?
min wage means nothing, just do an import tax hike on some and a lowering on others
Not touching the min wage, using WT as a means of increasing revenue from WAM. Sure it will be a pain for the guys who are doing WAM for self sufficiency but those types of people are most likely chasing high wages.
Too much high import taxes will raise short term revenue but will kill our market as buyers will go off-shore
Just drop all tax on RMs except food, that should help
Thanks all for your opinions..As i see most of you agree to change work tax from 3% to 4%..so will put it in law proposal now
As for other changes i think we should hear more opinions and more discussion is needed