Article
In this proposition I want to discuss why there should be taxes on contracts, how the Mods should go about it and how exactly it will benefit the game as a whole and connect the majority of players (at least the ones who dont use black markets)
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The current wrong system
Much like real life Corporations use various schemes to evade taxes or tactics like transfer pricing to pay minimal taxes in 3rd world countries, a fact.
In eSim it really isn't that complicated. All you need to do is set up a contract and you're good to go, it renders the product and job market useless. I know most players with companies who profit from this will hate the idea (similar to how Corporations love tax cuts and hate anyone who tries to tax them)
We have companies like
(and many others) who use this tactic to hire people for less money(equivalent to country currency-gold on normal job market)
We have articles like EUROPA MARKET DAY 11 promoting techniques which kill the in-game market system.
As things stand right now, the system works like this:
I have a weapon company(hypothetically) I pay my workers in gold through donations -> I sell the products produced in gold through contracts. Rinse and repeat. 0% taxes and revenue for the country and no reason to use the market.
Method to counter these tax evasions
Every contract should have a tax on the sum paid and received(essentially by both parties)
There are 3 options to do this, in Gold or Country Currency. Country Currency means that in Romania that would be RON, Poland - PLN, Hungary - HUF etc.
1. Country currency
There is a fixed tax, lets say 20% from the sum of every contract.
The amount of currency(if the contract is set up in gold) should depend on the exchange rates by both countries' official organisations.
So lets say *Country A Org* sells gold at rate *1 gold = 20 CC(country's own currency)* and *Country B Org* values *1 gold = 15CC*.
Contract example:
3. Gold
This time the countries' receive gold instead of its own currency.
4. The contract writer will pick an option how to pay taxes
Method to counter jobs paid in gold
Only 2 options. Ban companies, permanently or temporary restriction of players from having companies or simply tax donations amounted in Gold or currency. So not weapons or foods, but only donations that are in currency or gold.
Donations are a good way to help each other, however since some use it to evade taxes and contribute to ruin the game economy, a natural consequence should be to either directly take actions against individuals or modify the donations system itself, which is less worrying and permanently prevent it, compared to individually judge everyone's case.
Effects on market and economy after implementing these methods
Naturally the main benefitter from this change will be each country's government.
Taxes on contracts will also motivate people to start using the in-game markets more and in this way it will connect people more. They will directly interact like this rather than depend on outside sources such as irc and black market trade channels.
If the 1st or 2nd option is chosen, as in tax contracts and transform gold into CC, this will infuse more currency into the game and reduce the amount of gold. More currency in the treasury allows for governments to pay higher salaries, create more jobs and possibly even run some kind of subsidization program to promote growth in productivity and companies in their country.
More companies -> More products -> More competitivity -> More money in taxes for the government. Rinse and repeat.
If the 3rd option is chosen, the amount of gold will be used by governments for any purpose that it fits. Create companies, upgrade existing ones, change currency exchange rate to a more beneficial one etc.
I like this game, and I believe this change will benefit the community and the game itself. I would like to hear your opinion on this (although I can already guess it from black marketers and tax evaders) and weather there is any chance of it happening.
Sincerely,
Mr SwizZz
Previous article:
Europa Country/Alliance stats, Day 9 (10 years ago)
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.
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