Esim - Tax Proposals
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Tax Proposals (Old article)
Posted 12 years ago by
Calamadry    
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This is our current tax system in South Korea.



I have a few proposals for the general public in changes I would like to make and explanations on what is ahead.


Communes

With Skill 8’s in the game, we are now at almost feasible commune levels. As players achieve skill 9, we will find the increase in wealth and productivity will allow elite military units to turn to commune style supplies. If done properly, this avoids income taxes due to $1 wages, and mostly avoids VAT taxes due to produced goods being handed out by the commune. Only in cases where the player wants to use full supply fights, will a VAT tax actually harvest income.


Our tax system is working well currently, but with communes coming into play we slowly need to start turning to a VAT tax system, and lower income taxes to discourage commune style play (which probably will not work, but worth a shot). I am not proposing serious increases to either in this Congressional term, but we should evaluate our VAT incomes versus our income tax revenues each cycle.


In SK, we have a graduated tax system that protects our diamond/gifts and keeps all other prices low. I agree with this strategy, but wish to lower import taxes almost across the board.



Yellow denotes raising of tax, Green denotes lowering of tax



Diamonds and Gifts

I believe our wages and businesses are competitive worldwide, and a 10% import tax will easily keep our home country theirs.


Iron and Weapons

We have more weapon companies than iron by 30 to 20. Our iron market is full of foreign iron and it moves rather quickly. I have no problem with foreigners supplying their iron since we have a shortage but I would like to see our government receive a token 5% for the privilege. I do not believe this will raise their prices 5%, as they are still at profitable margins. Weapon taxes look fine to me at this time.


Tickets and Food

Our food prices are some of the lowest in the game, mostly due to our citizens buying in bulk and reselling. Food is the #1 item in the game for population growth, and due to that fact, it should be the most competitive market as well. I want to raise our VAT from 2 to 3% and lower our Import from 8 to 5% for a net drop in taxes on food. Tickets are the same way. Since they are a much smaller volume, I went straight to 5%-5% which we should slowly move towards for non-native products.




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