The Issue
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by NicknameFromRonny
Hello eBelgians,
as you might have (or totally didn't) notice, I've gotten in congress for the third time in my political eRepcareer. I want to thank ATO for the trust they have me and their fundamental cornerstone, 'you will be heared' inspired me to this new series.
The series I'll be posting during this congress term (there will be more if it brings some interesting results) is based on a very simple idea. It will bring an issue. Not an issue but the issue, in fact. I post the issue here, give some stats and facts and leave the comment section open for input. With the input given, a fine proposal might be worked out. Or not, of course. Either way, I hope to raise some well-thought reactions and bring together people with different ideas.
The First Issue
What?
My choice for the first issue was inspired by our Ministry of Finance JdlF and his latest report. I've taken the liberty to quote him:
"On the overall the economy of eBelgium is average. It means that we don’t make profit or real loss. Some researches should be handled by the government and by parties to know if we should change our taxation or not."
So, our tax system is... the issue.
Facts?
I always believed our income was 30K at the moment, but I'm sure our MoF can correct me.
The tax rates are
Foo😛
12% import and 15% VAT.
Weapons: 20% import and 10% VAT.
Raws: 20% import.
Income Tax: 6% percent
Questions?
We've seen quite some proposal the last few weeks, being it supporting higher import and lower VAT; lower income tax; lower VAT and lower income tax.
As far as I see it, a diversity of goals could be reached.
On one hand, we need at least some government income, to deal with MPPs and stuff.
On the other hand could lower import and lower VAT result in cheaper prices for the citizens.
But will people still be able to produce when prices are lower? Still be able to offer jobs?
I've been contemplating quite a bit over it, but I cannot find a way to break down our tax revenue into its pieces (what comes from income, what from weap VAT, what from ...).
So, what do you think? What values should we purchase when attempting to reform the tax system? Can you give examples of how and why? Or do you think it should stick to the old?
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Comments
Sorry, I have no clue about this matter. Just have the feeling that Mutual Protection Pacts are expensive and that the taxes should aim to keep them alive.
Not easy when some people "who want the best for our citizens" try to reduce our resources.
A moose in congress? why not, after all they made a donkey CP.
Taxes are always tricky, with higher importtax we let our people produce, however if we try to sell too high, then people goes shopping elsewhere, and taxes are lost.
Same if we raise the minimum wage, lot of us produce with workers but gain (almost) nothing, if wages rise, they will fire people and that means less taxes, cause people will work abroad, same risk if income taxes raise, so all of this must be done very carefully.
Foo😛 1% import and 10% VAT.
Weapons: 1% import and 15% VAT.
Raws: 1% import.
Income Tax: 15% percent
It would be ideal in my opinion. Delete the protectionist taxes \o/
Btw, great article, vote! Go NFR, go!
First of all, thanks for your input. I see the import-idea (although I wonder with will be the impact on our budget), but why the swap on VATs?
The food's price is too low. It's less profitable to produce food than weapon, so we have to offset : )
http://www.erepublik.com/en/article/low-taxes-explained-2173125/1/20 enjoy the read.
Do note that since we have only a small bonus in producing goods, a country like Poland can sell their goods at a price where our local manufacturors run a loss. So you need your import tax to give some breathing room for local production.
Other than that our local production / consumption and income levels are so low that changing these taxes makes little difference. Still feel free to test and try, maybe we can improve something. Just don't expect miracles
Without foreign production we won't be able to finance our MPPs in the future. We should test our economy without protectionist taxes atleast a week.
I like this article, we will see the answers 😃
I like when we talk about eMoney
http://www.erepublik.com/ro/article/live-the-moment--2236882/1/20 read 😃
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