Bill: Rejected BTC Act

[Icypenguin79]

A
BILL
TO

burn tax on chestshops.

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment

(1) This Act may be cited as the “Burn Tax on Chestshops Act” or as the “BTC Act”.
(2) This Act shall be enacted immediately upon its signage.
(3) This Bill was authored by Representative Icypenguin79.

2 - Reasons

(1) Currently our currency, the Redmontian Dollar, is experiencing inflation due to new players joining, spending their money, and then quitting.
(2) To combat this, a burn of 15% on all government shop transactions is proposed to remove dollars from the available supply.

3 - Terms

(1) 15% of all government chestshop transactions shall be burnt via a tax.

 

[End]

We're averaging 85 new players per day.

85 New players x $1000 Starting balances= $85,000/day being injected into the economy.

There are three ways money is injected into the server:

1. Mercenary + Mobs
2. Store bought currency
3. New player joins.

We have just nerfed mercenary from $0-$5 to $0-$1. So this is a huge decline in money being spawned in.

The store bought currency keeps the server online and is expensive. Can't work around that.

Yes, $85,000 is injected into the economy each day, but it doesn't actually have an effect because it doesn't circulate unless it's introduced (spent by the player). In order for new money to be introduced, the player has to actively spend it and that cannot happen when the player goes inactive. The Government won't tax their balances and introduce the money to the economy as tax brackets start at $2499. So with our retention rate at roughly 55%, $40,000 is exiting the economy each day as well - and this is just from new players. We also loose semi-active members daily who essentially take their money with them.

Chestshop tax goes to a nominated account, i.e. the Government. There are better ways to combat inflation than to go after hard working businesses.