Article
I will let you know that this article will be a big wall of text and in English only, so that our Iranian friends can read as well as I would like to know their opinion also.
Recently, the government decided to increase the taxes. I will give my opinion about this and will try to explain why I think this is a bad idea. This is just my opinion and view of economics.
The latest tax changes are those for Gifts and Weapons .
The income tax has changed to 10%. The Dutch state needs money, of course. We have been fighting a succesful war against Germany but it was costly. As almost everyone knows, the primary and highest income of a state is by means of taxes. However, raising the taxes can have a very negative effect as well.
Increasing taxes will force the sellers to offer their products more expensive. Now, weapons and gifts may not be a primary need for all the players, they are for the experienced. The Netherlands does not produce gifts nor weapons, so we are not protecting our market in any way. In fact, in my opinion we are beginning to destroy it this way. This is a very short-term vision for our economy.
Because the sellers are forced to offer their products more expensive, the Dutch will not be able to buy as many as they used to. This will mean that the sellers will have to look for an alternative market. This way, the market competetance will reduce drasticly as there will be less and less sellers. Less sellers means that it will be easier to adjust prices. This will result in making them even higher. Buyers will be forced to look for alternative markets as well e.g. the black market(as most active players do) or a foreign market.
Now let's do a simple calculation.
Less products = less buyers + higher prices = less buyers.
Less buyers = less tax income
Less tax income = less money for the state
This all will cause a less developped market.
Another negative effect is, is that immigration flow will be negative. People will not be attracted by our market and are less likely to join our country than before. And let's be honest. At the moment the Netherlands isn't getting it's numbers from Real Life Dutch citizens. This is not a problem, as it the Dutch culture to coorperate with different cultures, that is what we are good in.
We could raise import taxes on weapons or gifts, but we would have to produce them by ourselves. There has been told that the taxes are raised because there are some dutch citizens that are benefitting from this, because they have a company somewhere else. Well, in my opinion, there is nothing wrong with that! At least we have tax income this way and competitive and full market. So I say, lower the import tax and encourage people to sell at our market. This way our market becomes active and we will attract new people to stay in our beloved country.
With love,
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