Current changes to the tax system
Day 707, 12:28
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Published in United Kingdom 
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by
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by Bank of England
Citizens
Firstly may I apologise for the tardiness of this article, which hopefully helps you to see why so many tax change proposals being introduced to Congress are failing
The tax system, so long reliant on VAT, needs to be made more equitable, and is therefore being centred on an income tax system. The short version is that income tax is being raised to 15% across the board, while all VAT is lowered to a base rate of 1%.
You will notice that all Raw Materials, other than grain (due to our ability to compete to some degree on the grain market) have been raised to 50%. This is to seriously discourage citizens from entering markets that are not in any way competitive.
Also please note that import tax remains at 99% where we can compete, allowing British companies to prosper.
However, it should be noted that the effects will be reviewed, adn a slight settling period may occur.
The full tax changes are:
Food
15% income tax - 99% import tax -1% VAT
Gifts
15% income tax - 99% import tax -1% VAT
Weapons
15% income tax - 99% import tax -1% VAT
Moving Tickets
15% income tax - 99% import tax -1% VAT
Grain
15% income tax - 99% import tax
Diamonds
50% income tax - 1% import tax
Iron
50% income tax - 1% import tax
Oil
50% income tax - 1% import tax
Wood
50% income tax - 1% import tax
Houses
15% income tax - 99% import tax -1% VAT
Hospital
15% income tax - 1% import tax -1% VAT
Defence Systems
15% income tax - 1% import tax -1% VAT
Firstly may I apologise for the tardiness of this article, which hopefully helps you to see why so many tax change proposals being introduced to Congress are failing
The tax system, so long reliant on VAT, needs to be made more equitable, and is therefore being centred on an income tax system. The short version is that income tax is being raised to 15% across the board, while all VAT is lowered to a base rate of 1%.
You will notice that all Raw Materials, other than grain (due to our ability to compete to some degree on the grain market) have been raised to 50%. This is to seriously discourage citizens from entering markets that are not in any way competitive.
Also please note that import tax remains at 99% where we can compete, allowing British companies to prosper.
However, it should be noted that the effects will be reviewed, adn a slight settling period may occur.
The full tax changes are:
Food
15% income tax - 99% import tax -1% VAT
Gifts
15% income tax - 99% import tax -1% VAT
Weapons
15% income tax - 99% import tax -1% VAT
Moving Tickets
15% income tax - 99% import tax -1% VAT
Grain
15% income tax - 99% import tax
Diamonds
50% income tax - 1% import tax
Iron
50% income tax - 1% import tax
Oil
50% income tax - 1% import tax
Wood
50% income tax - 1% import tax
Houses
15% income tax - 99% import tax -1% VAT
Hospital
15% income tax - 1% import tax -1% VAT
Defence Systems
15% income tax - 1% import tax -1% VAT
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Comments
With grain as the only high resource available locally, it makes sense to align its income tax with that of the manufacturing and contruction companies. The 50% income tax on other raw materials companies should discourage (or eliminate) local companies in those unprofitable fields.
Similarly, low import taxes on the raw materials we need makes sense.
This leaves the question of the normal income tax increase from 10% to 15%. Why do we need a 50% overall tax increase? Surely this far outweighs any losses from lowered import taxes and VAT?
If eUK revenue and expenditure details were made publicly available, we could judge fairly whether the tax increases are necessary or appropriate.