Examining State Run Erep Economics

Day 1,489, 23:21 • Published in USA USA • by Saphire109

Examining eRep we should venture forth and see how this model works.
State Run Erep Economics
By Saphire109

Something unacceptable in all modules and theories of real world economics merged with some real world principles in order to make it more balanced.

Supposing we max out all taxes would we be making more tax revenue?
Yea, I think that could be possible because the bot pays taxes.

Would this be counterproductive?
You'd make more money than lose money in taxes. Basically in the real world the consumer would be paying higher for an item and losing money but since the bot is losing money we are actually making money. Some people will at first be disheartened but this is what should be done. Easily we can tell that exporting to other nations will then result in people having extreme difficulties of changing the massive amounts of foreign currency into usd since other countries will really have high import taxes in the first place. Hence if you own their currency and can buy their products by moving to that region you are exposed to their ever changing tax system as your only source of revenue. I.E. an embargo just puts you 20 gold out per country or a change in administration next month. In the real world you will face a huge stall in your productivity as businesses are not enthused about making money. However, this might prove effective in game policies since they have nowhere else to go.. (sad I know)..
Ok so let's put that good business sense aside and ask ourselves..
What happens under this system?

Administration
A non-corrupt administration will do a marvelous job and will indeed hike defense "spending" by spending I just mean buying up local manufacture we produce that will in the end result in greater glory for eUSA.
A corrupt administration? It will take 25% of what you make EVERY DAY and suddenly *Poof* it's gone.

Tax and Spend?
Even in the game, factories manufacturing will never beat the gains of a profit oriented private business. However because there is nowhere else to go I say blow all out on the taxes, put VAT on max taxation rate and leave Income tax at max then buy up all local industry produces and reinvest in order to help us win this game once and for all. Keep import taxes very low, 1% is fine because we want other people to sell locally as much as possible to have cheap goods. Imported goods will have to pay VAT anyways so tax and spend it if you have a non-corrupt e-govt it might just work.