Esim - Tax policy and budgeting
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Tax policy and budgeting (Economical)
Posted 9 years ago by
Kitsune Cavalry    
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To address the more time sensitive issue, Congress may have noticed this particular law:

https://secura.e-sim.org/law.html?id=50336



With the reason being that Qwin had ordered this, but our president Qwin has not authorized any such donation. Please vote no. It is rather frustrating that our finances are mishandled, first by the previous president who gave no transparency as to what money was being spent where, and now by rogue Congresspeople who are lying about where our treasury is supposed to be going. There was no debate or notice that this donation was going to happen, just that LukaHercegovac proposed it without warning.

It has been painfully clear to me, in my dealings with the Hercegovac's that they act dishonestly. For example with this conversation:



Ante completely removed the position of vice president and kept me out of the government, even though I was active, because he figured I would not accept one of his "friends" into the Czech Republic willy-nilly. He never responded to this message, and if there is one thing I will take offense to, it is this sort of subterfuge and clandestine behavior.

-----

That said, now that Qwin is in government, a person with much more experience than me or Ante, it is time then that we set a precedent for actually discussing fiscal policy, rather than allowing any politician, myself included, have the opportunity to move money without any justification, and to make sure that the government is not just investing into building whatever companies they want without thought to the global economy.

Currently, all VAT, income, and import taxes are at the default rates, so we do have some semblance of income. The major questions we have are:

--Do we want a higher minimum wage for newbies?
From the firm-specific human capital model, roughly speaking, a worker being subsidized in the early period to build up productivity will then subsidize the firm in the later periods. This ensures that both the firm and worker benefit from newbies gaining economic skill. A higher minimum wage might naturally encourage this sort of experience for all companies, regardless of firm specificity. On the other hand, some members of Congress might want to take a laissez-faire approach to the economy, which leads into the next point...

--Do we want to change the tax rate?
If there is a pressing, expensive purchase of infrastructure that would be good for us, like a hospital or defense system, it might be a good idea to tax more for public goods like national security, which can involve the costs of infrastructure, or involve paying soldiers to join an MU, and supplying them with weapons. We are still a very small country of course, but it is never too early to consider what spending is best coordinated by the state.

--What businesses should we encourage in our country?
Wood simply isn't the worst, but not the greatest industry to profit in, despite our high productivity region in it. Weapons production seems to be of due importance, as well as other basic necessities like moving tickets (we aren't exactly fighting very much in the Czech Republic), and we need companies that can compete with foreign importers to make sure we do not suffer from monopolies.

These are just some starting questions, and given the mechanics of this game, the optimal answers to these questions may be simpler than in real life. Concerns and feedback, or translation questions are welcome.

Warm regards,


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