More money for the people, new tax system proposal
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by Clopoyaur
Hello Koreans,
As presindent of the Korean Independence Party and congressman of Chungcheongnam-do I come in front of you proposing a new set of taxes. The purpose of this proposal is to discuss and to adapt our fiscal policy to the new game context and to stimulate the development of the South Korean society and economy.
You can find here the actual system of taxation – South Korea Tax grid
As you may see the burden of taxes is completely on the shoulders of citizens paying 10% of the wage as taxes.
I propose to change that by lowering the income tax to 5% to all areas, resulting in more money for the citizens to spend and to increase consume, therefore stimulating the economy. To compensate this loss in terms of income for the National Treasury, I also propose rising the level of VAT from 1% to 4%. This will result in a very small price increases that won’t have a strong impact to the market, but will make the company owners almost equal with citizens in paying taxes.
You can see below the entire grid propose😛
Since the food industry and the ticket industry are the most developed in our country I have proposed a slightly higher import tax in order to protect the local industry. I have set lower import taxes for houses because this industry is not developed at all in South Korea and imports, at least for the moment are desired.
Please feel free to discuss the proposal in comments. We can fine tune these settings and then we can put it into work inside the congress.
Regards,
Clopoyaur
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Comments
new taxes are good....maybe 10% import tax for moving Tickets.
새로운 세금은 좋은 거지 .... 티켓 이동 어쩌면 10 %의 수입 세금
comment new charges please.
새로운 혐의에 대해서는 언급세요.
The new grid looks good except for the ticket import tax which should also stay at 10% or lower together with the weapons.
The protection of our major industries grain and food is assured and the lower income tax might attract more people here.
I hope you will find a common ground for these changes. Good luck!
wow
n00b.
lower import for tickets and weapons! 4-5% for weps and 10% for tickets
not bad
This entire proposal, while well intentioned, is misleading:
Your proposals for a rise in VAT will mean that consumers will have to pay more for products, which means higher costs for businesses and lower sales. The VAT is also an easier tax to avoid than an income tax (donations directly, etc.), which will result in less money coming into the treasury. The income tax of 10% is not that high anyway, it amounts to taking about .1 KRW out of a paycheck, hardly a burden to start with.
Lastly, in this time of possible rapid inflation due to the recent printing of money, taxes should be left where they are...or even increased so there is less money on the market. Less money on the market means a gradual rise in the value of the KRW to the president's targeted level.
It sounds draconian and harsh indeed, but I would much rather have a stable KRW than lower taxes.
@Myung Kei: The purpose of lowering the taxes is to make the money rotate more and to stimulate economy. In this moment the only one who pay taxes are citizens while company owners pay a minimum amount.
Giving more money to the people would offer them the chance of spending more, while company owners would not have to rise their prices in order to sell products (the increase from 1% to 4% is very small. Example: a bread that costs 1 KRW would costs with the new system 1.04 KRW). By stimulating the consume, companies will be able to sell more, to produce more and by that to offer higher wages.
As a whole, the entire economy will move and will grow. This is the final purpose.
Income taxes are useless when it comes to company owners , who often trick the system by avoiding the use of the collect button . So the best way to increase the country's income is a higher VAT .
The new grid looks good. Maybe lower import for tickets (10😵 and weapons (7😵. Is good that is assured the protection of our major industries grain and food.
Good luck!
SK is changing
taxes must change to
"Since the food industry and the ticket industry are the most developed in our country I have proposed a slightly higher import tax in order to protect the local industry"
I lol'd at the ticket-industry part (: Only company you would protect with it, would be your own ticektcomp, but nice try. Other taxchanges seems fine, even taxes are good too atm.
@Clopoyaur
"The purpose of lowering the taxes is to make the money rotate more and to stimulate economy. In this moment the only one who pay taxes are citizens while company owners pay a minimum amount."
But the problem is that right now we have too much money rotating in the system. The total supply of KRW is slowly tricking back into the market, causing inflation and the price of goods to slide upward. Your proposal for an increase in the VAT and a drop in the income tax will mean that citizens will pay more per capita in taxes and company owners much less.
"Giving more money to the people would offer them the chance of spending more, while company owners would not have to rise their prices in order to sell products (the increase from 1% to 4% is very small."
In a normal economic system outside of this game, it would. However, raising VAT/dropping income will not only mean more fiat money in the economic circulum, but also decreased revenue in the long run for military expenditures and mentor programs.
The saying "if it ain't broke, don't fix it" comes to mind.
"By stimulating the consume, companies will be able to sell more, to produce more and by that to offer higher wages."
Higher wages of what economic value? Just because people are being paid more doesn't automatically mean that they will have a higher purchasing power.
"As a whole, the entire economy will move and will grow. This is the final purpose."
If the KRW slides below .015, then the economy will only weaken and stagnate from higher inflation. Again, regular economic theories have limited or no effect in game, except when discussing broad changes in taxes and Central Bank procedures.
I think it is reasonable to increase import tax at Food.
However, lowering income tax for increasing VAT is not a good idea. It will decrease country's income.