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surge in shadow economy and corruption

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Helsworth
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Post: #11
RE: surge in shadow economy and corruption

@teckghee1990
Your debt levels are way too low. You have so much room for fiscal stimulus.
I don't know if rent is also included in the living cost; but with close to no taxation on land and property - for sure you have massive private rent extraction happening in both your states. So I'd increase the capital tax to ground rent, house prices, and prevent speculation. Also, that would have an equitable effect in how the fiscal burden is shouldered.
You have a few options available:
-increase PE subsidies to prevent the living cost from rising too much over time
(increasing PE administration is also seminal if you want better infrastructure index and more free time for your citizens and a lower mortality rate)
-decrease excise
-decrease acquisition tax

It's your choice if you want to focus more on tax cuts or on more public spending; personally, I'd focus on the latter. You also have a lot of people starving to death - the unemployed as well as pensioners. Increase welfare and pensions ASAP!


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17.10.2014 12:53
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teckghee1990
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Post: #12
RE: surge in shadow economy and corruption

Thanks for the tips! I will do those changes tomorrow, my capital tax income is zero in both states, I suppose it is due to the corruption? I tried to reduce the capital tax few days ago to prevent them from going to corruption

18.10.2014 04:36
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Helsworth
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Post: #13
RE: surge in shadow economy and corruption

teckghee1990 Wrote:
Thanks for the tips! I will do those changes tomorrow, my capital tax income is zero in both states, I suppose it is due to the corruption? I tried to reduce the capital tax few days ago to prevent them from going to corruption

It's due to shadow economy and corruption. I don't know if these two indexes can be brought down to normal levels - since task options impact it to a good extent. But if you manage to increase welfare and pensions sufficiently enough to cover the cost of living and even go beyond it, then the indexes might improve.
If you have enough action points, do the basic income reform. But since you've introduced the negative income tax instead - that excludes the possibility of the former to be implemented. The alternative is a task option which allows you to enact a very very small basic income; you'll have to manually increase it from that point onward.


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18.10.2014 09:56
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