Work Tax at 1% or 2% or 3%? That is the Question in Many Sectors!

Day 3,943, 00:52 • Published in Turkey Turkey • by Walpole

Hi everybody,

You all know about the increasing wages in job market in recent weeks & months. As of today, average wages in most countries are at around ~500 cc per work.

As the Work as Manager (WAM) tax deducted is linearly proportional to the average wages, the trend of increasing wages is raising the tax burden on people doing WAM in their food and weapons sector companies.

But the "tax burden" is NOT equal to everybody. Briefly speaking, the work tax system in this game is a copy of archaic "poll tax", i.e. whether you produce q7 weapons in your factory or WRM in your q3 Aluminum mine, you pay the same tax regardless of the worth of what you produce per work.

Lets quantify it in a table.

Assume that Person-A owns companies located in a full-bonus country where average wage is 450 cc and the work tax is at 1%. The real tax rates (check P.S#1 for the definition), Person-A pay, depending on the companies he/she works are as follows:


(Check P.S#2 for the explanation of red-painted boxes)

As you can see, at the minimum applicable work tax rate of 1%, the tax rate in real terms for an act of "work as manager" in an Aluminum mine (q3 WRM) is at 23.6% while that is barely 0.6% for an q7 weapon factory.

Now, let’s check situation for Person-B and Person C who own companies in other full-bonus countries where work tax is at 2% and 3%, respectively.





The tax burden figures look horrendous for some sectors, don’t they.

What these tables tell us all is clear:

1- For q7 weapon factories or high quality food companies, work tax rate at 1% or 2% or 3% is not that important. What really matters for such companies are full bonus and low pollution.

2- On the other hand, for all sorts of WRM & FRM companies as well as low quality food factories, 1% work tax rate is as important as the high bonuses & low pollution.

Owners of latter type of production facilities should seriously think about moving their companies to the countries applying 1% work tax.

As far as I know, eTurkey is the only full bonus country officially binding itself with the commitment of keeping work tax rate at 1% in the future.

On top, its 7 core regions with relatively low pollution levels offer a perfect habitat for investments.



We are inviting all kinds of investors, especially those owning FRM, WRM and q1&q2 food production facilities, to our shores.

Best,
Walpole, MoE


P.S.#1
The real tax rate is defined as follows:

where Gross profit = Worth of your product - raw material costs - Value added tax - 10hp worth food needed to work as manager.

P.S#2
Red painted boxes indicate the types of companies that the worth of your product is less than work tax you pay and raw material cost, if any. Since this is the case for q1 FRMs & WRMs and q1-q4 weapon factories, even at the lowest possible work tax rate of 1%, then I can safely prescribe that you should not run these companies. If possible, upgrade them. If not, dissolve them and make investments in profitable companies.

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