[Debate] Lower Work Tax to 2%

Day 4,264, 11:04 Published in Netherlands Netherlands by UNL Congress

Greetings citizens of Netherlands,

a new debate has been opened at the request of the president Shawtyl0w to lower the Work Tax from 3% to 2%. More details below:


As Country President I wanted to find a way to give back to the people. I wanted to offer citizens who are looking for employees an incentive to increase salaries by funding the increase with government budget. After speaking with my vCP Feynmann and MoF Janty F we came to the conclusion that we can introduce a simple in-game solution that does not only give back to the people who require employees, but also to the citizens with less developed companies. The lowering of work tax means a decrease in government budget - however it allows people to Work as a Manager better. When I say work as a manager I am referring to working and making profits, currently a lot of companies and raw companies operate at a loss (or with very limited profits).

Our minister of finance estimates the loss of tax income due to this change equals around 120 000 NLG. That is around 1/8 of our total budget. However this money will not be collected and thus remain in the hands of the players!

As a result of lower tax, people might invest more in companies as they are now profitable again (mainly concerns food companies), which will go together with the economy program started by my predecessor. With more people working in companies (increase in tax and more products being sold, we hope that the lowering of tax income will at some point result in:

a. people earning more money.
b. Tax income recovering by volume of product sales and work as manager in an increased amount of companies.
c. The average salaries going up because of lower Work as a manager cost.
d. When the average salaries increase our tax income increases
e. Our company owners will be able to get more employees due to higher salary offers.

In other words the decrease in taxes should benefit all eNL citizens and in time will cause an increase in Work as a manager leading to the recovery of tax income we lose by introducing this tax reduction today.





djirtsdew & Janty F
CoC Team