Esim - Taxation Without Misrepresentation
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Welcome, welcome, one and all, to the first issue of The Vod-Chronicles, a literary feast which starving eyes shall not soon pass from memory.

This inaugural article's purpose is to inform the general population of the recent changes to the tax code of the USA. With the unprecedented surge of activity in the US of late, catalyzed by both the indubitable Liquid HOMICIDE and the apparently not-so-ill-fated Russian-American NAP, we Kongress-dwelling backroom creepers decided a new set of tax rates was in order.




Allow me to first direct you to the location of our country's basic economic information, easily accessed in "Economy" under the "Country" tab. There are three types of taxes a government can impose:

VAT is short for "Value Added Tax," which is applied to any goods sold on American markets, from foreign or domestic sellers. VAT is measured in a percent value which is removed from the sale of a product and directed to the country's treasury. As you can see, VAT is relatively consistent for all goods in the US, with none applied to RM and 5% for finished products. This means for every dollar you spend on the market, 0.05 USD goes to the country's treasury.

Import Taxes are only applied to foreign citizens selling in the US market. Import taxes are similar to VAT, in that they are measured as a percent value to be diverted to the treasury from the price of a product on the market. This is where the most significant changes in tax policy were made. The import taxes on weapons, food, and tickets were increased dramatically, and those products are heavily taxed if sold by other countries' citizens on our market.

Income Taxes are a different animal entirely. This tax is applied to the salary of anyone working in a company based in the US. Nothing special here, 5% across the board.



Now for the important part: how this will hopefully affect the economy and why we did it. The first most obvious impact of raising import taxes on WF&T will be an increase in prices in those sectors. This means the average citizen will be able to purchase fewer of these goods with a set daily salary. This is undesirable, but there is a good reason for it.

Since the US is in an economic period of infancy, we have virtually zero domestic manufacturing. We also own no high resource regions, which means that we have no domestic sources of raw materials. It is worth mentioning that there are US citizens supplying our markets by operating businesses in other countries, most notably Russia, but that is beside the point. Any true foreigner selling on our market is not really interested in obtaining USD, but the Gold that USD presumably represent. If we want foreign products in this country, we must be prepared to offer the sellers something in exchange, and all we have is personal medal Gold and a limited supply of USD. The Gold needs to be invested in domestic infrastructure (i.e. companies, MUs), and simply tossing out USD for short-term gain weakens the currency, which simultaneously makes our market (and monetary market) less attractive to legitimate foreign business and more attractive to speculators and hostile governments.



This stuff needs to stay in the country


Our goal in raising import taxes on WF&T substantially while keeping import taxes on RM low is to create a protected environment where US business owners can develop their companies free of competition from more efficient and productive foreign operations, as well as to preserve the fragile purchasing power of the USD. We strongly encourage citizens to work for domestic manufacturing companies and for American-owned RM companies in Russia. There is also a need for more company owners, especially in gifts, food, and weapons. Wages, productivity, and purchasing power of employees will be lower here, but the country needs to start somewhere; else we will forever pay income taxes to our cruel Russian overlords.

As can be seen here, manufacturing companies do not need to be sited in a high-resource region to receive productivity bonuses, they only need be located anywhere in a country which possesses such regions. The US will not be confined to an impoverished single-region wasteland forever, so the only downside to creating companies here now is a short-term loss of potential production elsewhere.

There are high regions of diamond, grain, and iron in the proximity of our country, and it is only a matter of time before we have enough diamond-encrusted ironburgers for every citizen to gorge themselves on a daily basis.





Not a Russian spy,

-Vladimir

Next article:
The Gathering Place (13 years ago)

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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.

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