Iron/Oil/Grain tax

We are a lucky little nation that has High Oil, High Iron, and High Grain, and we should protect these industries from foreign competition.

I propose we adjust the taxes of Oil, Iron and Grain as follows:

Oil --- Income Tax 1% --- Import Tax 99%
Iron --- Income Tax 1% --- Import Tax 99%
Grain --- Income Tax 0% --- Import Tax 99%

This will protect our industries, generate a little more revenue from Iron and Oil sales (but 0% is fine too).

Let me know your thoughts.

Greetings and I have to say this forum could be an exciting new step for eChina.

My proposal endevours to support eChina's fledgling food industry while also making it more economically viable to inport high quality food into our market place.

Can we vary the import tax on food according to quality? I propose we heavily tax Q1-Q2 foods and ease the tax on Q3-Q5. The result should be that the companies that produce Q1-Q2 here would have some protection and importers would be encouraged to supply us with the higher qualities we need. Once a company within eChina lifts it's quality to Q3 we could shift the tax to protect it.

It may not be possible to vary the tax according to quality and if not maybe some form of rebate system could be divised. This would compensate importers of high quality foods for the higher tax we set for lower quality foods.

Your thoughts ?

Archangel111

RE the import tax on iron, oil and grain.

I agree, and it gives us some bargaining power if in future we need to do something about our balance of trades with other countries.

Oh, on a more general note please forgive me if my proposals sound uninformed. They are, I'm new.

Archangel111

I don't care if they are uniformed and don't let that ever discourage you from posting, that's how we learn. We cannot vary the tax by quality (Q) level, if we could, that'd be great, but we cannot.

Welcome.

I think we would be better off going the other way, compensating low Q chinese companies and keeping our import tax low.

I do not see a problem in the low food qualities yet, and I have difficult time imagining one will form. We are not a hot market and there is not a need for Q1 and Q2, so I don't think any businessmen would buy an export license of Q1 Q2 food here because we are so tiny and they'd face competition. If one does appear and they undercut our own businesses by a small margin, we can push nationalism (buy chinese products) via newspaper or make slight tax changes.

Or we generate a black market and hike our import taxes on food up to 50%

Is it generating a black market BY hiking up taxes, or what do you mean...?

Here's my thought. I think it an interesting solution that both sides can live with.

J&J Foods informed me (via newspaper comments) that his company is feeling the pain of foreign competition and last week he averaged 20-30 Q2 food, while today he sold one after a Q3 company entered our market. This told me that we have 20-30 people who want good food, no matter the cost or where it is from.

To protect J&J Food (and all others really) we'd need to increase our Food Import Taxes. But this means we wont get good high-end food anymore, which is very problematic for everyone who wants to increase their wellness, because Q2 food doesn't really help you gain wellness, so we want to import good Q food.

My idea is to have someone (I don't have they money for this or I would) go to the cheapest market in the world, but 10 Q5 food and sell it for face value (making enough to cover moving tickets). This way people can get really high end food and get near 100 and then they will start buying the lower Q food we have an abundance of. This idea could also be applied using gifts, but then the burden would fall on our poor government.