[Opinion] The Work Tax Effects
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by Blakasuta
Hello people of the new world! 🙂
As we already know, Plato introduced a new tax, called work tax. The mechanism and its feature can be seen here.
In this my very first serious article in English (forgive me for grammatical error 😛
) I want to share my opinions regarding the effects of work tax.
Profitability of work as manager (WAM)
Work tax actually doesn't have new effect on the employee but give new effects on people doing WAM. People with more company which they do WAM on must pay more tax. People should reconsider which company give profit and which one doesn't on WAM, regarding the current work tax. Different company will give different profit or loss. Simply put, company with higher productivity will give more profit.
Government have more control on item supplies
When government set higher work tax, some low productivity company will not give the owner profit. As example a country with work tax 10% on average wage 10.00 cc will take 1 cc per WAM. Grain company produces 35 FRM (no bonus) which is sold to give 0.7 cc (0.02 cc/items). This will give 0.3 cc loss per WAM on grain. So, the government can limit the number of production by increasing work tax which make only high level company owner can gain profit.
Change on market price
If high work tax is applied, the price of items (especially FRM and WRM) will be increased. This effects the production cost of weapon and food company.
Conclusion
The government can combine the work tax, VAT, and minimum wage to give a desired effect. The effect of the combined work tax, VAT, and minimum wage is quite complex and most likely will not have the desired effect on first try. I heard people complaining that Plato is destroying the economy module by render them profitless. But this new tax can limit the economically nonsense of every player can fulfill their need by WAM. If every player can fulfill their need by WAM, who will buy items on market?
And last, I cannot guarantee that my opinion is true, only time will prove that. 🙂
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"I heard people complaining that Plato is destroying the economy module by render them profitless. But this new tax can limit the economically nonsense of every player can fulfill their need by WAM. If every player can fulfill their need by WAM, who will buy items on market?"
I agree that WaM is messing the economy and something had to be done but WaM is the only option for companies
Raw companies need to be completely changed, imo. Perhaps there should be only to types of Raw companies: one with employee slots and one without them. Obviously with the same production but different prices.
"to types of Raw companies"
two qualities (..)
Actually low quality companies still profitable in a high resource country.
[removed]
That tax is a idiotic.
Imagine a income tax where the income tax base for a guy is decided by the income some other dude makes AND the first guy (producers) can decide the level of that income (workers).
You don't have to be a genius in game theory to understand what will be the effect on the wages in the long term. At the same time the prices will go higher because of the increase in the production costs.
As for the state, it can do nothing with it unless it is willing to kick new players in the balls (financially speaking).
You got the point about the tax base, that is somehow unfair.
But I think the government still can do something about it, such as lowering the VAT so that people have higher profit margin. But again, maybe that will decrease country income.
One more thing, the resource of the country will affect much because it can increase the profit of WAM. Unfortunately, our country condition is not so good now.
You know what effects the profit of WAM most: the average wage rate. China has it at 8, Poland at 14, Japan at 12(!!). I can play with taxes all i want, it will have little influence on the profit compare to that.
Lowering VAT for food to 5% is not enough! First lets be clear, eJapan doesnt have revenue problems... We make about 50k from orgs and about the same from taxes. And even if we spend more than the limit Geezus said (35k, lets say 40k for MPPs) plus expenses for army and culture it is still far from 100k. Not to mention that with the gold from competion, we have plenty of reserves. Income for the state shouldnt be a priority, its should be the last thing on our minds. We have bigger problems... The economy isnt working for players (especially low lv players who dont have high Q companies), the state and its treasury are doing fine. But yea, we can change it. We must reduce both VAT and import taxes. VAT for food to 1% (import also), while the VAT for weapons if possible (treasury icnome) could be lowered some day, but not now. And import for guns also down to 1%. why? we see how high prices get during events (which are happening more and more) and an increase in supply could drop it slightly. It would decrease "unfair" profit from people who buy guns somewhere else and then sell it high in eJapan. Simple supply and demand. Decrease import taxes (increases supply), prices go down. Now some will say it will "destroy our domestic buisness, you are only helping people from other nations" and those are the people who havent actually done the math and just use it as a political slogan. More foreign competition would lower prices during events and it would for sure benefit low and middle players that dont have their own high Q weapons companies. As for the time when there is no events (normal time), yea domestic companies will have to lower prices. How will they compensate for that? By lowering wages. Isnt that what we want? By lowering wages companies would also decrease their own taxes (increasing their profit, compensating for lower prices and foreign competition). Low lv and mid lv players would benif most from these reforms, altough high lv wouldnt lose much too.