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Below is a wall of text that explains why Q1 through Q3 companies can't compete, and it has nothing to do with taxes:
Q1-Q3 companies can never compete because of the efficiency advantages that Q4 and Q5 companies have, Q4 companies could pay there workers 20% more than a Q3 companies, 40% more than a Q2 and 60% more than a Q1. With Q5 companies you can add another 20% to each.
That means that Q1 companies unless they are producing finished goods that a market exists for can never compete in the same labor market, as the labor market is set by the highest any company is willing to spend for labor. If I run a Q5 wood company, I can pay my workers 80% more than your workers to get the same production out of them. That means you can't compete with me for labor.
Taxes don't effect the labor market (or have very minimal effects). The labor market is based on supply and demand for labor. In extreme cases high income taxes will decrease the supply of labor as employees can flock to low income tax countries. In reality though this does not occur. Most laborers want to work int he country where they live. Additionally, after tax income in the US is near the top of the world, so a rational employee would not leave unless they didn't care about being in the United States and was also indifferent to the currency they got paid in.
Therefore labor rates are defined by how much companies are willing to pay for labor. Since as I established in the first paragraph, Q5 and Q4 companies can pay so much more for labor, Q1 - Q3 companies just can not compete in that environment.
The positives of low import taxes are just that foreign businesses are willing to sell here.
What does that mean:
A) We get goods at competitive prices, if you increase the import taxes we will have to pay more for goods. Increasing the price of goods would mean we do less damage and the dollar doesn't go as far.
B) The government gets revenue from foreign sellers. The reality is that even a few percentage points will make it so that large foreign producers will set up Stock Companies in the United States, this will mean no revenue from these products. Right now the government gets 1% of all their sales.
C) The demand for USD goes up as more goods are bought and sold in it, this makes a Peg easier to set and allows the government to collect Gold reserves, something we are in need of.
D) Finally, the low income tax actually benefits local producers, foreign companies are willing to forgo 1% of their profits to sell here, meaning US companies have a 1% efficiency advantage over foreign producers (including many who's companies are located in the United States). As discussed in point B, if we increase the Import tax even marginally, more of those companies will set up Stock Companies here, destroying this 1% advantage that local business have.
I honestly haven't been able to find a negative to low Import taxes other than it creates a debate within our populace, but so would increasing those rates.
Maybe businesses would also get 1% more profits, but remember, even Q3 companies need 40% more profits to compete for labor equally with Q5 companies, there's no tax code that will allow that.
If you think something I said is wrong, please comment. About it. However, please make sure you don't violate the laws of supply and demand in making your argument.
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About the game:
USA as a world power? In E-Sim it is possible!
In E-Sim we have a huge, living world, which is a mirror copy of the Earth. Well, maybe not completely mirrored, because the balance of power in this virtual world looks a bit different than in real life. In E-Sim, USA does not have to be a world superpower, It can be efficiently managed as a much smaller country that has entrepreneurial citizens that support it's foundation. Everything depends on the players themselves and how they decide to shape the political map of the game.
Work for the good of your country and see it rise to an empire.
Activities in this game are divided into several modules. First is the economy as a citizen in a country of your choice you must work to earn money, which you will get to spend for example, on food or purchase of weapons which are critical for your progress as a fighter. You will work in either private companies which are owned by players or government companies which are owned by the state. After progressing in the game you will finally get the opportunity to set up your own business and hire other players. If it prospers, we can even change it into a joint-stock company and enter the stock market and get even more money in this way.
In E-Sim, international wars are nothing out of the ordinary.
Become an influential politician.
The second module is a politics. Just like in real life politics in E-Sim are an extremely powerful tool that can be used for your own purposes. From time to time there are elections in the game in which you will not only vote, but also have the ability to run for the head of the party you're in. You can also apply for congress, where once elected you will be given the right to vote on laws proposed by your fellow congress members or your president and propose laws yourself. Voting on laws is important for your country as it can shape the lives of those around you. You can also try to become the head of a given party, and even take part in presidential elections and decide on the shape of the foreign policy of a given state (for example, who to declare war on). Career in politics is obviously not easy and in order to succeed in it, you have to have a good plan and compete for the votes of voters.
You can go bankrupt or become a rich man while playing the stock market.
The international war.
The last and probably the most important module is military. In E-Sim, countries are constantly fighting each other for control over territories which in return grant them access to more valuable raw materials. For this purpose, they form alliances, they fight international wars, but they also have to deal with, for example, uprisings in conquered countries or civil wars, which may explode on their territory. You can also take part in these clashes, although you are also given the opportunity to lead a life as a pacifist who focuses on other activities in the game (for example, running a successful newspaper or selling products).
At the auction you can sell or buy your dream inventory.
E-Sim is a unique browser game. It's creators ensured realistic representation of the mechanisms present in the real world and gave all power to the players who shape the image of the virtual Earth according to their own. So come and join them and help your country achieve its full potential.
Invest, produce and sell - be an entrepreneur in E-Sim.
Take part in numerous events for the E-Sim community.
