Work Tax at 1% or 2% or 3%? That is the Question in Many Sectors!
Walpole
Hi everybody,
You all know about the increasing wages in job market in recent weeks & months. As of today, average wages in most countries are at around ~500 cc per work.
As the Work as Manager (WAM) tax deducted is linearly proportional to the average wages, the trend of increasing wages is raising the tax burden on people doing WAM in their food and weapons sector companies.
But the "tax burden" is NOT equal to everybody. Briefly speaking, the work tax system in this game is a copy of archaic "poll tax", i.e. whether you produce q7 weapons in your factory or WRM in your q3 Aluminum mine, you pay the same tax regardless of the worth of what you produce per work.
Lets quantify it in a table.
Assume that Person-A owns companies located in a full-bonus country where average wage is 450 cc and the work tax is at 1%. The real tax rates (check P.S#1 for the definition), Person-A pay, depending on the companies he/she works are as follows:
(Check P.S#2 for the explanation of red-painted boxes)
As you can see, at the minimum applicable work tax rate of 1%, the tax rate in real terms for an act of "work as manager" in an Aluminum mine (q3 WRM) is at 23.6% while that is barely 0.6% for an q7 weapon factory.
Now, let’s check situation for Person-B and Person C who own companies in other full-bonus countries where work tax is at 2% and 3%, respectively.
The tax burden figures look horrendous for some sectors, don’t they.
What these tables tell us all is clear:
1- For q7 weapon factories or high quality food companies, work tax rate at 1% or 2% or 3% is not that important. What really matters for such companies are full bonus and low pollution.
2- On the other hand, for all sorts of WRM & FRM companies as well as low quality food factories, 1% work tax rate is as important as the high bonuses & low pollution.
Owners of latter type of production facilities should seriously think about moving their companies to the countries applying 1% work tax.
As far as I know, eTurkey is the only full bonus country officially binding itself with the commitment of keeping work tax rate at 1% in the future.
On top, its 7 core regions with relatively low pollution levels offer a perfect habitat for investments.
We are inviting all kinds of investors, especially those owning FRM, WRM and q1&q2 food production facilities, to our shores.
Best,
Walpole, MoE
P.S.#1
The real tax rate is defined as follows:
where Gross profit = Worth of your product - raw material costs - Value added tax - 10hp worth food needed to work as manager.
P.S#2
Red painted boxes indicate the types of companies that the worth of your product is less than work tax you pay and raw material cost, if any. Since this is the case for q1 FRMs & WRMs and q1-q4 weapon factories, even at the lowest possible work tax rate of 1%, then I can safely prescribe that you should not run these companies. If possible, upgrade them. If not, dissolve them and make investments in profitable companies.
BONUS:
Comments
pirinç
Successfully transferred 500 item(s) to Blue and Black.
Sen niye Gokturk'e havaci olarak gelmiyorsun panpa?
geleyim. fortum var mı?
Olma mi? Davetiyeni atiyom,
ALLAHU AKBAR
gazeteci yazar
stratejik derinlik.
bu ne lan. linkedn mi burası?
@blue bunun dot deliginin derinligi stratejik derinliginden daha fazladir sittir et xd
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şokella
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V guzel makale eline sağlık
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okuyarak zaman kaybetmeyin ,geyik makalesi yazdığını makalenin sonundaki özet kısmında belirtmiş xdxd
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Vv o7
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Poi~
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Alla helal olsun. Artık w+t dışında her sabah ülkenin vergi gelir trendlerine bakıyorum.
Ben 20 gundur o haldeyim kanki.
🙂
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Votturdum
very usefull topic, congrats 😃
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Sayende calismak icin baska ülkeye gidip gelmiyorum artik, yoksa ugrasmazdik 🙂
Good job!
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That's interesting how my production polluted Eastern Anatolia. But, nevertheless, big portion of your country's tax is coming from my activity. Good luck, smart man! Thank you for your hard work, Walpole!
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I see your holding in Erzurum with its 591 companies.I can see it because you have moved your residence over there too..
I am wondering whether the pollution in Eastern Anatolia solely due to you.
I guess yes. But look at Q4 food pollution. I have just 4 Q4 factories and I don't think that anybody else has the same Q4. Apparently, the pollution factor was amplified by admins. That what I think compared to the situation a year ago
Moved the residence because Bulgaria took Vermont,USA and we are at war (TW) with them.
The problem is we don't know anything about holdings whose owners have residences in other provinces. Because we don't see such holdings.
I'd love to know the mathematical formula determining the pollution levels. But Plato does not want us know.
Agree. Somebody is using Q7 WRM factories to the point that I don't even place the workers on mine, producing WAM output only
Adam dahi beyler.
"As far as I know, eTurkey is the only full bonus country officially binding itself with the commitment of keeping work tax rate at 1% in the future."
eCroatia is keeping its 1% as it was for the past 5 years 🙂
However, keeping and binding arent the same thing are they? 😃
Not sure what you mean, keeping and binding describe different things 🙂
What i mean is that binding is an obligation against erepublik community for eTurkey. On the other side, keeping is a choice of eCrotia, so there is no promises that it wont change. ( of course keeping rate 5 years at that rate is also trustworthy )
And tell me, what or who exactly obliges Turkey to keep it at 1%? Are there going to be repercussions or a punishment against Turkey (and by whom)? No. There is no ingame binding here, Turkey can raise their taxes tomorrow, and there is nothing anybody could do about it. Let's be real here, and say: yes, Croatia choose to keep it at 1%, for the sake of our own citizens. Turkey, on the other hand lowered it to 1% just to attract company owners, and might change it at any time. The point is 1% is a characteristic of Croatian economy, and a fucntional one at that for the past 5 years, while Turkey's 1% is just a marketing trick.
Governments comes and goes, who's to guarantee the next month taxes will not get high again, old government gone from the game, natural disasters etc. 😃