Tax Discussion Time
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by Viado Celtru
Now we have a new congress sworn in, its time to have a discussion about our tax set up.
I suspect over half of you have stopped reading already, but at present we have 1% work tax, 15% import and 1% VAT on all goods except aircraft weapons which has 1% import tax.
Short version is that I am proposing changing this set up and will put the proposal into congress after discussion here. My proposal is to have 4% work tax, 2% import tax and 5% VAT on all goods.
In general, from looking across a bunch of countries, most have work tax between 3 and 5% and VAT between 5 and 10%. Import tax tends to vary from either 1% or 99%.
The reasoning for my changes is that the eAus market is significantly more expensive than most other nations (at least the ones I have export licenses to, which is about 15 nations). The higher our tax rates are, the more it cuts into businesses profits which means they either won't sell here or will only sell at a higher rate.
This has 2 main effects.
1. Players buying off the Australian market have to pay more which means they can't buy as much. This means less food and weapons for us to fight with.
2. Players move international to buy their goods. This is what I do. The individual gets the benefit of lower prices but as a nation, we miss out on earning tax revenue to use for equipping our soldiers and placing combat orders.
My proposal will lower the overall tax rate paid on goods which in time should bring down prices (this will not happen instantly). The reduction in import taxes should bring in efficiently produced, cheaper imports which should have the biggest downwards pressure on prices.
If we can get our prices closer to international prices, we will have more people happy to just buy off our market instead of moving for a few cents discount. This means more goods for our people, and taxes for the government.
The final tax is work tax. This is on both wages and manager work. At the moment, those people who are self sufficient by manager working, contribute very little in taxes to the nation. By increasing this from 1% to 4%, their burden remains low, but their contribution becomes significantly more.
I am more than willing to hear your views on this and alter the rates if you have good reasons and will put this proposal into congress in the next few days.
Obligatory picture for Callum and Guagature.
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Comments
I wholeheartedly agree, which makes me feel dirty.
I agree the tax issue needs to be addressed. However while we are occupied, our tax dollars go to Peru, so we need to keep that in mind at this present time.
Hmm .... needs more pictures ....
[removed]
Since you added a picture I will give a half valid response.
Nothing will change in eAus, Mastercard players who benefit from low WT by not giving their fair share will always use the commune advantage and the tax dollars going to region held countries to stall the change.
Ultimately it is not about those players but the community at large and what benefits the community, get the country back like what was falsely promised and just raise the taxes that benefit everyone and just not the few
I completely agree with you Viado, but like Rusty says. Doing anything now with Peru here will only give them more reasons to stay here.
I think you will find support for this from the majority, just need to be patient till we see what happens with Peru
I had to read that, 3 times... You agree with something 😛
I hadn't thought about the Peru angle. I'd probably still go ahead and propose it sooner rather than later. Tax from VAT and imports would only ever go to us wouldn't they? It would only be work tax that Peru might get some of
Peru will get 80% from memory, I did the calcs in the last CP article
We can't produce anything if we are in direct war with the invaders. ALSO when they vote trade embargo against us we couldn't work even if we are totally wiped.
At the rate peru is taking over our regions they would get all of it.
Peru's a non issue. We've basically been owned by one country or another for the last year or more and that doesn't look like it's going to change any time soon. Who cares if Peru has there turn at enslaving us?
I propose a flat rate 1% tax across the board. The eAus government has had zero tangible effect on the lives of its Citizens. As a player. i would like to see cheaper imports which, one would think; enable the consumer's (and fighters) to be more effective and active in wars.
Otherwise I am vehemently apposed to ANY increase in the work tax.