Notice: Trade Equality Act
-
- Posts: 657
- Joined: Fri Jul 06, 2012 2:39 am
Notice: Trade Equality Act
Beginning in February, SCUE will begin to enact a policy intended to promote trade, and trade equality, amongst the members of the bank. The policy, hereafter known as the Trade Equality Act will authorize the bank's administration to tax members who's overall bi-monthly GDP is equal to zero, for a flat rate of 5% of their total currency reserves, while reimbursing members who's GDP is greater than zero, for up to 5% of the value of their transactions during teach two month period. Taxes and reimbursements will occur on a bi-monthly (8 week) basis. Nations may not be exempted from taxes, though they may be exempted from reimbursements, if they so request.
The first taxes and reimbursements will occur on April 1st, 2015, and GDP will be calculated beginning on February 1st. The table below provides an overview of how the bank will tax and reimburse members for their transactions, or lack thereof within the bank.
This table demonstrates how taxes and reimbursements would be applied, had the Trade Equality Act been implemented in December, 2014. According to the information provided in the table, Gralus, who owns 18% of all current currency reserves, would receive a reimbursement of 107.15 Sc, or 1% of their GDP of 10,715 Sc, while Flanders, who owns 14% of all current currency reserves, would be taxed for 5% of their currency reserve, for a value of 10,972.545 Sc. Alexandria who owns 8% of all current currency reserves would be reimbursed for 2.5% of their GDP, while Passio-Corum, who owns 0% of currency reserves, would, like Flanders, be taxed for 5% of their currency reserve. These figures will change on a monthly basis depending on each nation's GDP; a nation could, for instance, enjoy a 5% reimbursement for the value their transactions one month, while suffering a 5% tax on their total currency reserve the next. The format for the table seen above however, will remain consistent for updates, and it may be used to gain an understanding of how the Trade Equality Act will be enforced.
On April 1st, SCUE will automatically withdraw taxes from nations with a GDP of zero, and provide reimbursements for nations with a GDP greater than zero, though nations are certainly free to maintain their own records regarding taxes and reimbursements, and if the situation arises, to transfer taxes to the SCUE bank of their own volition. At that time, a table such as the one seen above will be published in the SCUE forum at hub.mn/forum. If any member nation opposes this policy, or possesses any insights as to how this policy may be improved, they are invited to express their concerns openly and honestly.
Thank you for your time.
Duke Sinclair
The first taxes and reimbursements will occur on April 1st, 2015, and GDP will be calculated beginning on February 1st. The table below provides an overview of how the bank will tax and reimburse members for their transactions, or lack thereof within the bank.
This table demonstrates how taxes and reimbursements would be applied, had the Trade Equality Act been implemented in December, 2014. According to the information provided in the table, Gralus, who owns 18% of all current currency reserves, would receive a reimbursement of 107.15 Sc, or 1% of their GDP of 10,715 Sc, while Flanders, who owns 14% of all current currency reserves, would be taxed for 5% of their currency reserve, for a value of 10,972.545 Sc. Alexandria who owns 8% of all current currency reserves would be reimbursed for 2.5% of their GDP, while Passio-Corum, who owns 0% of currency reserves, would, like Flanders, be taxed for 5% of their currency reserve. These figures will change on a monthly basis depending on each nation's GDP; a nation could, for instance, enjoy a 5% reimbursement for the value their transactions one month, while suffering a 5% tax on their total currency reserve the next. The format for the table seen above however, will remain consistent for updates, and it may be used to gain an understanding of how the Trade Equality Act will be enforced.
On April 1st, SCUE will automatically withdraw taxes from nations with a GDP of zero, and provide reimbursements for nations with a GDP greater than zero, though nations are certainly free to maintain their own records regarding taxes and reimbursements, and if the situation arises, to transfer taxes to the SCUE bank of their own volition. At that time, a table such as the one seen above will be published in the SCUE forum at hub.mn/forum. If any member nation opposes this policy, or possesses any insights as to how this policy may be improved, they are invited to express their concerns openly and honestly.
Thank you for your time.
Duke Sinclair
""YJD: Een Recwar is prima zolang Bijaro niet deelneemt."
-
- Posts: 134
- Joined: Sun Feb 10, 2013 11:12 pm
Re: Notice: Trade Equality Act
Question: How is GDP calculated? I just want to know what
Ergonia will have to do (like make transactions, etc.), in order
to prevent it from losing more money.
Ergonia will have to do (like make transactions, etc.), in order
to prevent it from losing more money.
Re: Notice: Trade Equality Act
Are you kidding me? You cannot just steal half of my personal money just because it happens to be the only account in coria. I doubt this is legally possible, but if you continue with this, I am definitely done with SCUE.
Porque las estirpes condenadas a cien años de soledad no tenían una segunda oportunidad sobre la tierra.
Re: Notice: Trade Equality Act
"Notice"? How about a discussion about this first to see if anyone supports this move?
Formerly His Imperial Niftiness Yardistanislaus du Grifos, former Kaiser of Shireroth
Now just Vilhelm Benkern, Count of Mar Sara
Suzerain of Hawshire // Peil̊åkti an Ixraǔtn | Protector of the Safir // Xonuti Shawa 'allumi Sanilla'i'i | King of the Free State of Sanilla
Now just Vilhelm Benkern, Count of Mar Sara
Suzerain of Hawshire // Peil̊åkti an Ixraǔtn | Protector of the Safir // Xonuti Shawa 'allumi Sanilla'i'i | King of the Free State of Sanilla
-
- Administrator General
- Posts: 4333
- Joined: Wed Dec 31, 2008 10:58 pm
- Location: Republic of Mercury
Re: Notice: Trade Equality Act
It is explicitly stated in the treaty that the administrator can impose taxes, but we can also change that rule by a simple majority vote.
-
- Posts: 657
- Joined: Fri Jul 06, 2012 2:39 am
Re: Notice: Trade Equality Act
All that is requested in order to avoid a tax is at least one transaction. Regarding the exact mechanisms behind the GDP, I am not exactly clear (for that I would refer you to the system's designers), but it is a measure of your nation's transactions.Question: How is GDP calculated? I just want to know what
Ergonia will have to do (like make transactions, etc.), in order
to prevent it from losing more money.
The bar could not be set lower for you unless the bank did nothing. Clearly, doing nothing has not encouraged you to participate in any meaningful way.Are you kidding me? You cannot just steal half of my personal money just because it happens to be the only account in coria. I doubt this is legally possible, but if you continue with this, I am definitely done with SCUE.
With all due respect, it appears my word choice was effective. But by all means, let's have a discussion regarding ways the bank could encourage your nations to participate."Notice"? How about a discussion about this first to see if anyone supports this move?
* I am prepared to refrain from implementing policy until we have come to some agreement as to the role of SCUE should be in promoting trade amongst members.
If this tax is deemed unreasonable, then by all means. I remain confident that such a policy produces tangible incentives which outweigh potential losses.It is explicitly stated in the treaty that the administrator can impose taxes, but we can also change that rule by a simple majority vote.
""YJD: Een Recwar is prima zolang Bijaro niet deelneemt."
-
- Administrator General
- Posts: 4333
- Joined: Wed Dec 31, 2008 10:58 pm
- Location: Republic of Mercury
Re: Notice: Trade Equality Act
My personal view is that penalising members for just sitting on piles of money and never spending it seems fair. I don't know where the idea that Coria will lose half of their money came from, as the tax is only 5%.
But of course, the policy should only be implemented after a sufficient notice period, so that nations have chance to avoid the tax by making transactions.
But of course, the policy should only be implemented after a sufficient notice period, so that nations have chance to avoid the tax by making transactions.
-
- Posts: 134
- Joined: Sun Feb 10, 2013 11:12 pm
Re: Notice: Trade Equality Act
I agree with the plan and echo the sentiments of joefoxon.
-
- Posts: 5024
- Joined: Sun Jun 24, 2007 8:34 pm
- Location: Novatainia
- Contact:
Re: Notice: Trade Equality Act
This actually sounds like quite a reasonable plan to me - taxing inactive and rewarding economic activity. There are ways it could be broken, but I don't think anyone cares enough about it to do that, so we should be fine.
As for the GDP calculation:
Consumption = All spending from a certain nation by Private Accounts.
Investment = All spending from a certain nation by Company Accounts.
Government Spending = All spending from a certain nation by Government Accounts.
Imports = All spending from a certain nation destined for any other nation.
Exports = All spending from any other nations destined for a certain nation.
Net Exports = Exports - Imports
GDP = C + I + G + NX
(Note that if you buy things in other nations, you may get negative GDP, but you only get taxed for having 0, so you should be fine).
As for the GDP calculation:
Consumption = All spending from a certain nation by Private Accounts.
Investment = All spending from a certain nation by Company Accounts.
Government Spending = All spending from a certain nation by Government Accounts.
Imports = All spending from a certain nation destined for any other nation.
Exports = All spending from any other nations destined for a certain nation.
Net Exports = Exports - Imports
GDP = C + I + G + NX
(Note that if you buy things in other nations, you may get negative GDP, but you only get taxed for having 0, so you should be fine).
Andreas
"He showed up three or four years ago and accidentally took over the micronational world by being way more competent and enthusiastic than everyone else. Now he sort of rules us all, but it's a benevolent sort of thing, as far as we know."
~Scott Alexander
"He showed up three or four years ago and accidentally took over the micronational world by being way more competent and enthusiastic than everyone else. Now he sort of rules us all, but it's a benevolent sort of thing, as far as we know."
~Scott Alexander
Re: Notice: Trade Equality Act
I am willing to participate in international trade, but at the moment I don't see interesting ways to participate. Furthermore, I think it is unfair to include coria here, given that we are a member of the scue for just over a week.
Porque las estirpes condenadas a cien años de soledad no tenían una segunda oportunidad sobre la tierra.
Re: Notice: Trade Equality Act
What I want is for the scue to give me the time to make a transaction, which I will make rightaway, and to take this transaction into account.
Porque las estirpes condenadas a cien años de soledad no tenían una segunda oportunidad sobre la tierra.
-
- Administrator General
- Posts: 4333
- Joined: Wed Dec 31, 2008 10:58 pm
- Location: Republic of Mercury
Re: Notice: Trade Equality Act
I agree that sufficient notice should be given, so that members who currently don't have any plans in place to make any transactions in the near future will have time to do so. I also think that a grace period should apply to new members, as we should try and promote their involvement in other ways to begin with.Jack wrote:What I want is for the scue to give me the time to make a transaction, which I will make rightaway, and to take this transaction into account.
Re: Notice: Trade Equality Act
I guess you are referring to the last words of this article of the treaty:
"8. There shall be an administrator of the bank, with the power to change the region of accounts as required; to create currency for new signatory nations; and to enforce taxation."
Enforcing taxation is not the same as imposing taxation. As I read the treaty I think it is pretty clear that the only entity that can impose taxes are the separate signatory nations. Even if you can interpret it as meaning that the administrator can impose taxes, I would still consider the language ambiguous.
"8. There shall be an administrator of the bank, with the power to change the region of accounts as required; to create currency for new signatory nations; and to enforce taxation."
Enforcing taxation is not the same as imposing taxation. As I read the treaty I think it is pretty clear that the only entity that can impose taxes are the separate signatory nations. Even if you can interpret it as meaning that the administrator can impose taxes, I would still consider the language ambiguous.
-
- Posts: 657
- Joined: Fri Jul 06, 2012 2:39 am
Re: Notice: Trade Equality Act
Since there seems to be some concern regarding new members, I would like to point out that no one has actually been taxed yet. The table I posted was hypothetical. No one will be taxed or reimbursed until April at the earliest.
""YJD: Een Recwar is prima zolang Bijaro niet deelneemt."
-
- Posts: 80
- Joined: Tue Jun 28, 2011 8:00 pm
Re: Notice: Trade Equality Act
While the proposal is an intriguing one from a theoretical point of view, the Treaty, while giving the Administrator the power to enforce taxes, neither gives any authority for the creation of supra-national taxes, nor imposes any obligation upon the signatories to pay them.
So any such arrangement would require an amendment of the Treaty to be passed by a majority of the signatories first.
So any such arrangement would require an amendment of the Treaty to be passed by a majority of the signatories first.
Lord Erion, MNN, Chancellor of the Bovic Empire of the Natopian Nation.