No More Taxes Policy
Saphire109
Game Article of eRepublik game by Saphire109
Why?
Easy, people in the game do not need to rely on social welfare at all (it is a game after all).
Hence we should evaluate the 0% Tax policy
The Numbers
Let me explain the efficiency of the 0% tax policy (meaning 0% taxes across the board). In the absolute free market format in the game we would find some industries completely uncompetitive. By this I mean there would be no factories in the eUS economy at all (we would import goods for only a half of their current costs). Simple math.
A factory costs 300 gold, let's say it's 300,000 dollars.
Per factory one person can only make 310 dollars a day supposing he also has 2 raw material farms. Under this format it would take 3 years of work just to pay off the factory. Does this show how inefficient communes really are?
Yes, you see if instead 300,000 dollars were invested in raw material companies you'd have 35 of them each producing a revenue of around 80 dollars a day per farm. This is a total of 2,800 dollars (90 tanks) versus the 310 dollars or 10 tanks in the game that the commune makes. Remember this is per person productivy. So we can therefore say that the free market makes people 9 times more efficient and productive. Suppose 5 workers worked in a commune without even taking wages. In the free market format of 0 taxes they would specialize in profit oriented industries making 14,000 dollars a day. In the state run industry they would be making only 1,550 dollars a day. In the game this translates to 451 tanks in the free market vs 50 tanks in the commune system.
How To Defend Yourself In 0% Tax
In this format our income per day would be far more than just 9 times the amount. This is because 9 times more money in circulation would mean 9 times more demand for jobs which would then translate into 9 times the consumption in lower labor costs. The real amount of GDP increase would be around 18 times the amount increase due to employee benefits and income duplication. We would be making around 1,800,000 dollars per day in GDP. Now, how do you get the state to defend itself. Well first of all just because this system is so perfectly efficient we would rarely need any regulation since people would have more money and hence more power to purchase cheaper goods. However funding can and must indeed be supplied for defense this is why the establishment of powerful voluntary groups would be useful. As I stated in my prior article "One Million Dollars A Week" ten private businessmen at potential could fuel the eUSA's economy alone. I propose that since that is the case we would have say 10 groups of businessmen willing to donate to the treasury to keep our beautiful system. This method would ensure our income flux to be around 500k per day (5 times what it is now) through private enterprise donations. They would do this for a week or so and then another group would be called into donating. This will therefore fuel both eUSA in security 500% greater than it currently is and increase GDP by 1800%.
Comments
/me Watching closely
25% income tax is killing eUSA
This is interesting...
epic
Duh. This is a no brainer. Tax is fully inferior to TARIFFS. 0 tax and a 15% import tax(tariff) on foreign goods and a 90% for Serbia. If I want to help disaster victims I'll donate to the RedCross, not let FEMA steal my cash and tell people where the RedCross is.
We must cut the oppressive income tax!
This means more working in your own companies = less wellness for fighting our enemies = lower overall damage.
Also 9 times more demand for jobs, I'm guessing everyone that wants a job already has and you can't work at more than one job so I don't see any rise in demand for jobs unless there is a population increase.
You people need to separate your real life tax views from in game tax views because they are very different.
Screwpublic-you can't have different import taxes for different countries = everyone pays the same unless you have an embargo which cuts off trade completely. Also a 15% import tax brings in next to nothing in terms of revenue. Import taxes are pretty useless for raising revenue.
And you want 10 groups of businessmen to voluntarily give money to support the government. What if they decide not to give money. Where would the country be then. Why would they do this? Why would anyone want to give most their profits to the government. You people are *itching about 25% income tax and you want them to give up all their profits. I have an idea; how about you Saphire109 and your friends make 500k a day and give all of it to the government. Sounds like a good plan to me.
Taxes are killing eUSA!
Bobby I was making the comparison of small businessman being 9 times more productive. If you want an easy explanation 10 powerful businessmen will cap profits at 14,000 dollars per day (322 in game tanks). In effect they can't battle but they could fuel the eusa's economy on their own as they are 3,222 times more productive than any single citizen in the span of 10 days.. If we had 10 groups of them one group would donate per week this is very viable.
So in essence they only donate for that week but then maximize profits the following weeks. I would do this with np and I am a large businesman taxes are the worst way to grow an economy. Period. Especially in a game.
Lower income tax
Higher import tax
Suitable VAT
thats what i feel.....
This completely ignores foreign import taxes, the fact that it's impossible in game mechanics to have 0% taxes, existing infrastructure, the fact that not everyone communes, that it is *individually* less efficient, and that people are selfish.
Foreign Imports: Low-cost RMs will undercut other major economies, hence they will levy protectionist imports without a cohesive economic plan.
Game Mechanics: At least 1% taxes in everything.
Existing Infrastructure: While it may not be efficient to build new infrastructure, we already have a vast amount of existing factories. They are individually profitable, so we should use them.
Not everyone communes: Enough said. We have so many two-clickers it hurts.
Efficiency: Individually, people make less working in an RM company. Factories output twice the amount of production as compared to RM companies. Whereas you can make ~400 USD worth of Q5 food, in a Q5 RM company that is only worth ~200. Does it make more sense to WaM RMs? Yes. Does it make sense to have a salary in RMs? No.
Selfishness: People are selfish, plain and simple. Helping the country with consistent donations is something only a few players will do, and I would not recommend relying on that at all.
"Not everyone communes: Enough said. We have so many two-clickers it hurts."
The claim that those not working in communes were less active than those who do is both completely baseless and immensely stupid.
"Selfishness: People are selfish, plain and simple."
And apparently our current tax regime is completely focused to transfer income to the most selfish. And you dare to call it 'optimal'.