Shireroth

Good Shirithians,

I have stood before you many times with economic reform. With our new Kaiseress I stand before you once more. We have come full circle in our economy. We started with the newest of ideas - a vote based economy. Over time, we added bounties, changed to voting credits, trialed war, and unpegged our economy from the Landsraad. Today, I come before you with the oldest of ideas - a free, united economy. Uniting our currency with others has been tabled before and always rejected, because our economic systems have been so different. But now the world stands a point in time where this is possible. Gralus is about to begin their economy as a free economy - no taxes, no restrictions on businesses, just a currency and a lot of people interested in being involved. Shireroth also has a relatively free economy, save two things. Change them, and we could unite the Erb with the GELT, such that we share one bank, and one currency. We would call it different names, but it would be acceptable in either country (actually, all three, as Nelaga wants to join). We could finally achieve the micronational dream of an international economy - 40+ people involved!

All you, as a Landsraad, need to do is change two things.
1. Remove mandatory taxes. By all means keep the liquidity tax and keep paying bounties, but at the moment, the crown has such funds we won´t need to be taxing any time soon.
2. Remove the lawbook restriction on foreigners owning erb.


I´m pressed for time and I´ll write up thehange needed later ... but I put the substance of the change needed above, so discussion can begin. It would be nice to have this passed before the end of the month, to save doing taxes then.

My dear Andreas, this is a very interesting idea. I hope that the Landsraad will give this proposal the consideration it truly deserves.

Would it be preferable to see where narrowing the tax bands gets us first - the notion that the taxman is going to recoup it anyway is an incentive in itself to invest erb into orbats and whatever else it is people spend on.

My dear Khan - that's certainly the theoretical idea and what I myself argued in bringing them in. However, I've yet to see much spending just before taxes, or indeed, many people seem at all motivated to spend so they aren't taxed. If you do feel motivated by it though, I'm willing to discuss keeping it. It's also getting annoying doing it every month for so many accounts with such odd values ... so if we did keep, lets not make it every month, and change the brackets (and put it just to three, not five).
EDIT: Though I prefer Ari's option

Regarding the legal changes:

Chapter XIII: Economy
B 3.2 The minister shall act as the authority for registering businesses and shall ensure the correct procedures are followed by said companies.

I think we should just let businesses run without being registered anymore. Not sure if the above needs to be stricken to do so, or whether its just that I change Minitrade policy.

Chapter XIII: Economy
C. 1.0 The national unit of currency used by the subjects and inhabitants of The Imperial Republic Of Shireroth shall be known as "The Erb".
1.1 Erb may be traded and owned only by citizens of The Imperial Republic of Shireroth and limited to trade within the Realm unless otherwise decreed by The Kaiser or by act of Landsraad.

Change that to:

Chapter XIII: Economy
C. 1.0 The national unit of currency used by the subjects and inhabitants of The Imperial Republic Of Shireroth shall be known as "The Erb".

(allows currency exchange)

Chapter XIII: Economy
I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation every month. Unless otherwise stated, taxes will be levied on the last day of each month.

2. The Taxation shall be personal and as follows, payable on each part therein.
0-1000 erb - Tax Free
1000.01-2000 erb - 10%
2000.01-3500 erb - 15%
3500.01-5000 erb - 20%
5000.01+ erb - 30%

3. Companies who have a separate account will also be taxed, at the following rates:
0-1000 erb - 10%
1000.01-2000 erb - 17%
2000.01-3500 erb - 25%
3500.01-5000 erb - 35%
5000.01+ erb - 50%

Change to:

Chapter XIII: Economy
I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation when it is deemed necessary to maintain Crown financing. It shall be levied on all Shirithian citizens who hold a bank account in Shireroth.

2. The Taxation shall be personal and as follows, payable on each part therein.
0-2000 erb - Tax Free
2000.01-5000 erb - 15%
5000.01+ erb - 30%

3. Companies who have a separate account will also be taxed, at the following rates:
0-2000 erb - 15%
2000.01-5000 erb - 30%
5000.01+ erb - 50%

The tax stuff is negotiable. I'd be just as happy at the moment removing it entirely but its up to the Landsraad.
EDIT: Or Ari's option. Ari's option works well.
It would read then:

Chapter XIII: Economy
I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation when it is deemed necessary to maintain Crown financing.

2. The taxation shall be conducted on each Duke, in recognition of the privelige of that position within Shirithian society. Each Duke shall be taxed 2000 each time tax is required.

3. Duke's are not empowered to tax their Duchies.

But Dukes can of course continue to ask for contributions. None of them have ever actually "enforced" taxation before (ie used the admin account to do so)

H. Official Bank

1. All currencies will be held within accounts registered to the Bank of The Imperial Republic of Shireroth.

- May need changing, see later.


So, in total, changes are:

Chapter XIII: Economy
C. 1.0 The national unit of currency used by the subjects and inhabitants of The Imperial Republic Of Shireroth shall be known as "The Erb".
1.1 shall be removed.

I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation when it is deemed necessary to maintain Crown financing.

2. The taxation shall be conducted on each Duke, in recognition of the privelige of that position within Shirithian society. Each Duke shall be taxed 2000 each time tax is required.

3. Duke's are not empowered to tax their Duchies.

Assuming that B 3.2 is interpreted in such a way as to allow me to stop registering companies if I want to. And pending possible changes to the Official Bank, if needed.
Also see this, which is why we're doing these reforms.

I'll be bringing the amendment to remove the restriction that the erb can only be used by Shirithians to the Landsraad soonish. It was kinda weird in the first place now that I think of it - is there anyone who would actually be disallowed from dealing in erb due to this law? (this probably means it's a good time to remove the bit about duchal local currencies only being tradable within Shireroth too)

The tax amendment could be trimmed down a bit though IMO.

Chapter XIII: Economy
I. Taxation.

1. The Ministry of Trade shall be empowered to conduct national taxation when it is deemed necessary to maintain Crown financing.

2. Each Duke shall be taxed 2000 each time tax is required.

IMO "dukes are not empowered to tax their duchies" is a very strange thing to say if your intent is "dukes can't use the bank's administrative features to move money from their citizens in order to pay taxes". A better way to put it would be an item in the banking regulations saying that dukes don't have access to their subjects' bank accounts... and that should go somewhere else, obviously. Best to work on that later. Also, I didn't think the justification for the taxation of dukes really belonged in the lawbook.

That's fine. Just a heads up, if you don't pass this quite soon I'll be obligated under the old laws to tax you all (instead of putting it off for several months as I'd like to ...)