Cracking The Tax Problem
Schubacca
Article Update Day 2,909: Though my idea of cracking the tax problem could be a good approach it would need other things in place in order to succeed successfully. I will be studying this issue further and hope to write a new article in the future to update my idea on cracking the tax problem. Thanks and God bless America.
There be many that say don't dare cross that line to change taxes for any. The Erepublik module is a strange module and it takes experience to know to how to keep the government at steady levels. There are some people will want to convince others (probably me also) leave it as it is and not make any proposals. I must state I not a congressmen but an eAmerican with some thoughts I have that I like share. There are people in eUSA that wish to find a solution whether its by raising it very low, very high, stay as it is or simply no taxes at all. Question is which is the proper way to do it when it comes to taxes. I agree in principle raising the work tax or zero would not generate no revenue and raising works would absolute kill the eUSA economy. However what I do agree is that there can be a middle grpund where nothing too draconian in terms of ideas would destroy the eUSA economy. In my personal view it seems are all our views are all scattered when it comes to figuring tax problem and how to provide tax relief which is okay because we are citizen bound by core belief which makes this country great. I am here that perhaps there is a new angle that should be looked at in order to approach taxes in general.
The problem I see is understanding how the economy runs by going back to economic basics 101--The economic engine. It starts with looking at the relationship between the food/weapon/housing raw material sector and the factory sector that produces food, weapon and housing products. As we all know, not to sound dumb, it is the raw materials that is required to produce products from the factory that we see on the market as well along with raw materials.
Are you with me so far? I hope so.
While the 15% work tax may be a fine to bring in revenue it seems our focus on revenue come for eUSA citizens and not so much on what revenue can be brought in from import taxes that could be possible that could be gained from other countries. My view point on import taxes that if we are willing to sell our products other countries in their markets, its only fair that they do the same when it comes to selling their products in the eUSA market. This is where I somewhat agree with securing trade agreement with countries we do business with.
Tax relief is a hot button issue among citizens. It drives us crazy to point that we perhaps forgotten the basics. In my point of view if tax relief is going to happen we need to look at one relationship: the raw material sector (work taxes) and the import taxes. This is where I believe the focus should be.
As many can see by going to "My country" under government tab via Community is the breakdown of taxes. In the work tax column is a 15% flat tax across the board while in the import tax column its most at 1% across the board except for housing which is at 3%. The housing import tax could be raised to 5% but see it as optional move. Very little revenue is coming outside of country other that 15% VAT tax moving tickets. Frankly that should be left alone including hospitals and defense system when it comes to figuring out tax relief.
An approach would be looking at this like a seesaw that has raw material work tax at one end and import tax on the other end. In order to have tax relief my thought is raise import taxes and just lower the work tax on just food/weapons/housing raw materials. Leave the food, weapon, and housing work tax including everything else in that column at 15%. The idea here is spur growth of raw materials so they can be sent the factories to produce products and create a new engine for economic. It's not rocket science people nor is it some Da Vinci Code that is hard to decipher.
Lets go back to that seesaw approach I was talking about and how to achieve that balance between work taxes on raw materials and import tax so tax relief can kick in. At import tax side would be anywhere 5% to 15% for the range of how far I would go. However I would suggest going with 5% import straight across the board flat tax. It must be pointed to watch steady stream coming from imports in order to determine how much work tax on raw materials should be lowered which my ballpark guess would be example if you raise imports 5% then the work tax on raw materials would fall in margin within 1% to 5% lowering. Ideally figure more like between 1% or 2% so just not kill the revenue. Now if we to raise say the import tax up to 10% or 15% then work could slide to lower by 3%. If a steady revenue stream can be achieved by having 15% flat import tax then work taxes on raw materials can be lowered down as far as 10% and no lower. The import tax break line threshold in my opinion would be beginning at 20% by my rough estimate guess. In other words what I am explaining is a sliding scale of between work taxes on raw materials and imports to determine how high or low in order to make a proper adjustment to have steady proper revenue growth while at the same time opening new growth in the eUSA economy.
Did I tell you I am not a eRepublk economics expert? Well I am not a eRepublik economic expert which I must state. Whether what I am trying say to the average eAmerican makes sense is up to you to decide. Even if this hunch is something that should be tried our country should take the next steps to truly have that great conversation not among our eUSA citizen but in halls among our congress people in the halls of our nation's congress. As an eAmerican I will not relent in giving up the fight in solving this juggernaut of tax system that eRepublik. It is my CAN DO attitude that will keep at it until there is a solution, a solution we can agree on and take a great a great risk to see if it can possibly can work.
Thankyou and God bless America.
Comments
we first need to stop allowing people to avoid taxes. we must raise min wage!
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That's another that be strongly looked at. Perhaps maybe raising the minimum wage say like to $5 is not too much to ask for.
It seems like the black market is the main problem because all us players are struggling. Even though this game has no rules using the black market we are essentially powerless to run a viable economy. If they were smart I like see a black market developed for this game and some option that government's can take to help fight against it instead of relying using the black market offsite. To me the way the way black markets to me amounts to a firm of cheating.
An idea that struck my head this morning. Bring in cartels in the game that is set up like political political parties with a few features. They would have to work to expand their vault say a warehouse like how we expand storage to protect their cash and resources. Their management would be like between protected cash and unprotected cash. They would influence wars and they can choose to align themselves with or against governments like MPP pacts. When defeated on the battlefield in the frame of play we take cash from their unprotected during battles. Plus they post anonymously in the market and remain part of the system to their hearts content.
they used to have "orgimizaton" accounts that function similar to what you described. there are still a few active ones. but i think they got rid of them because people were using them to help get around some of the rules of the game.
i spelled orgimization wrong, but will not look up the correect spelling of it 🙂
organization
Just toggled to look at Argentina and they virtually thrive on revenue on the dependence of import taxes than work taxes which is at 5.00% to get their own revenue from their citizens.
Hint: No sane man will ever sell to a foreign market with an import tax of >1%. Why would a foreigner purchase a 20g eUS license just so he can sell at a loss and generate taxes for the eUS?
I agree, i hardly eve use my import licenses. i have thought about it some times but the math gets too complex.
even recently i thought about selling houses in Brazil.
house prices america, 410, house prices brazil 425.
tax brazil 10 dollars, tax usa 4.
406-414= 8 dollars
it would be 750 houses to get the 20 gold. I produce 50 a day so it would be two weeks to get the money for the license.
so there is the math why someone might want to buy an import license.
however i do agree not many people will use the import licenses in a high import tax country.
haha yep brazil has a 1% import tax. so you are correct >1% would not be worth it!
There are some rare situations where it sort of makes sense for products, but not at all for RM. Prices are the same everywhere unless we're talking about super small markets, so any tax applied is nothing but a loss.
Just don't eat too much
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I googled to find this article from someone's newspaper from eCanada. I thought was insightful.
http://www.erepublik.com/en/article/cpm-standardized-tax-rates-mill-rate-system-and-cad-printing-to-tax-revenue-1114007/1/20