NationStates Jolt Archive

Fair Exchange Tax for international trade

Reaffirming, that Nationstates and unexplored country is covered by this proposal and in alignment to UN resolution #117.

Acknowledging, Microcredit Bazaar as window in uplifting poverty on region, as well as the unexplored and free trade.

Determining under the FETR, a member or non-member of UN with expanded derivates may support the investor as well as the local through its qualified bank.

Determining FET of country is based on the computation below:

1. Population multiplied by 3.1416 on which the result will be its FETIR.

P X 3.1416 = tariff

2. In case of group, get the sum of the group divided by number of the group multiplied by 3.1416 on which result will be its FETIR.

N...n5/n1 X 3.1416 = tariff


Creating, a Credit-Linked Note (CLN) as per agreed by inside/outside entity for mutual trade protection of countries.

Further creation, a Special Purpose Vehicle (SPV) specifically established to issue CLN of a single, homogeneous risk class that are fully collateralized as to principal by high-grade securities purchased out of the proceeds of the note issuance.

Assuring that only a Tax Bureau of both trading nation shall be limited on their trade as per agreement of both parties.

Further Assurance, Special Purpose Vehicle are in form of national banks as endorse by the nation or region, group of 1 to 5 country not limited on same region &/or 2 region.

Define; a "Credit-Linked Note" (CLN) pertains to a pre-funded credit derivative instrument under which the note holder effectively accepts the transfer of credit risk pertaining to a reference asset or basket of assets issued by a reference entity/ies.

Define a "Special Purpose Vehicle" as a "bankruptcy-remote entity" whose operations are limited to the acquisition and financing of specific assets and makes its obligations secure even if the parent company goes bankrupt.

Declares accordingly that all member nations shall make endorsement base on current status of the their country, in case of their interest to be a SPV.

Aside from a possible metagaming issue, a serious "WTF" needs to be levied

Did anyone else have this go over their head? :confused:

Bob Flibble
UN Representative

thats the effect of caffeine :headbang: geez my job is really boring no calls, no customer service... :eek:

Opposed. We Yeldans will never stand for any of this, well, whatever it is.

We note with approval the impenetrative formulation of this proposal and commend the author for their efforts.

My population of 6 million multiplied by 3.1416 (this is a rounded form of pi) equals... $18,846,600.

For a nation of my size, that number is too big. And it can easily reach beyond a nation's economy.

My population of 6 million multiplied by 3.1416 (this is a rounded form of pi) equals... $18,846,600.

For a nation of my size, that number is too big. And it can easily reach beyond a nation's economy.


i understand that $18,846,600.00 is beyond the net worth of a particular country (explored and unexplored) but the result of computation must be $18.846/tax per transaction only.

The amount of transactions I have to make would require the figure I posted.

I think this needs to be a double resolution. The orginal and the translation :D.

Seriously, it went over my head at the height of a thousand feet and I can barely, make that hardly, understand what it means or does.

The amount of transactions I have to make would require the figure I posted.

we cant compute "absolute amount" but we could regulate (but not all) the goods that enters in our country, in this case please do "amend/add/edit/omit" several line in the interest of nationstates.

tnx

I think this needs to be a double resolution. The orginal and the translation :D.

Seriously, it went over my head at the height of a thousand feet and I can barely, make that hardly, understand what it means or does.


probably by the end of the week or 2 days from now, ill be posting the abstract of the resolution.

tnx

Surely the best way to enhance trade equality, is not through this rather complex, if well intentioned method, but rather through application of the Tobin Tax.

The Tobin Tax is a system which operates through charging a low tax rate (0.05% to 1%) on the trade of currencies, thus in theory reducing short term speculation. The finance gathered could be used as an additional source of development funding and help flat-iron the trade differences between poorer and richer countries, whilst reducing preadatory, exploitative economic tactics. It would also help empower local financial institutions and economies:

" have absolutely nothing in common with those anti-globalisation rebels. Of course I am pleased; but the loudest applause is coming from the wrong side. Look, I am an economist and, like most economists, I support free trade. Furthermore, I am in favour of the International Monetary Fund, the World Bank, the World Trade Organisation. They’ve hijacked my name ... The tax on foreign exchange transactions was devised to cushion exchange rate fluctuations. The idea is very simple: at each exchange of a currency into another a small tax would be levied - lets say, 0,5% of the volume of the transaction. This dissuades speculators as many investors invest their money in foreign exchange on a very short-term basis. If this money is suddenly withdrawn, countries have to drastically increase interest rates for their currency to still be attractive. But high interest is often disastrous for a national economy, as the nineties crisis in Mexico, South East Asia and Russia have proven. My tax would return some margin of manoeuvre to issuing banks in small countries and would be a measure of opposition to the dictate of the financial markets "
James Tobin

I would be interested in comments or ideas regarding this suggestion.

May the blessings of our otters be upon you all.

Leonard Otterby
Ambassador for the Republic of Compadria to the U.N.

thats another problem, "nationstates" doesnt have any swift currency or common/acceptable currency, tnx for the suggestion im currently editing some part of the draft in the interest of the nations.

rest assure the common currency will be a follow up draft, in support to your idea. :cool:



Lord V of Isabela and the Holy republic of PiusXX

*reads draft*

*head explodes*

i want to co author on this resolution please send me a telegram tnx

the abstract

The propesed Fair Exchange Tax on International Trade sets out the principles on which every Government intends to conduct uniformity of tax in international trade, Because there are major weaknesses in the orthodox tax theory of the past on which special purpose vehicle(SPV) must be created as the safety net of both party.

In particular, there is a lack of congruence between its micro- and macroeconomic elements which raise doubts about the ability of tax policy of particular nation.

SPV must act as the "third party" between the trading countries, while Credit-Linked Note will be the "contract" as instrument of transaction.

This proposal sets out from the framework of "Microcredit Bazaar: UN resolution 117" but with define approach to taxation in which the micro- and macroeconomic elements are fully integrated.

Moreover, international trade demand has taken over as corporate demand than the usual transaction of countries. We know that transactions (including those on assets, intermediate and secondhand goods) have grown much more rapidly than inside product and that will appear as negative return to local product whenever importing is present.




special tnx to the people of hague ;)

tnx to Tobin Tax suggestion of Leonard Otterby
Ambassador for the Republic of Compadria to the U.N.

Ok, I'm going to put a smiley next to everything that went over my head. There's a smiley limit, so don't be scare....yet

question mark guy - no freaking clue
sad face - not quite certain what you're referring to

the abstract

The propesed Fair Exchange Tax on International Trade sets out the principles on which every Government intends to conduct uniformity of tax in international trade, Because there are major weaknesses in the orthodox tax theory :( of the past on which special purpose vehicle(SPV) :confused: must be created as the safety net of both party.

In particular, there is a lack of congruence between its micro- and macroeconomic elements :confused: which raise doubts about the ability of tax policy of particular nation.

SPV must act as the "third party" between the trading countries, while Credit-Linked Note :confused: will be the "contract" as instrument of transaction.

This proposal sets out from the framework of "Microcredit Bazaar: UN resolution 117" but with define approach to taxation in which the micro- and macroeconomic elements are fully integrated. :(

Moreover, international trade demand has taken over as corporate demand than the usual transaction of countries. We know that transactions (including those on assets, intermediate :confused: and secondhand goods) have grown much more rapidly than inside product :confused: and that will appear as negative return to local product whenever importing is present.




special tnx to the people of hague ;)

tnx to Tobin Tax suggestion of Leonard Otterby
Ambassador for the Republic of Compadria to the U.N.

So, again for those of us who don't have degrees in economics?

Even if you do have a degree in economics, it's very poorly explained. There's no context, and as such it is extremely difficult to comprehend.

I would suggest that the author provides an example of a situation in which this would be applied. Specifically the existing problem and the resolution which this proposal would bring.

im referring to a simple tariff, similar to goods coming in our country.

since this is a metagaming, i defined several guidelines (but yes i admit its kinda complicated)

my resolution started when i saw a role play posted on "International Incidents"
http://forums.jolt.co.uk/showthread.php?t=440478

its a military supplying industry role play, i am so enthusiast to read every single message appearing on that forum since im a lil bit new here, then i noticed "hey where is the tariff...isnt it that any foreign product docking our port has tax?"

on that day onwards i tried to search past resolution that contains a lil gesture of free trade protection for our country.

as per my understanding in "UNITED NATIONS RESOLUTION #117"; it is a protection of small entreprise who in any way has the ability to participate the trade and the "microcredit bazzar" as their avenue.

then a question rises up again in my mind "do businesses/consumer has protection in any goods coming from foreign land?"
(in this case DMI MILITARY...please refer to the forum)

two answer pops up yes and no.
YES because some will not participate on foreign trade.
NO because it will affect the purchasing power of business/consumer.



to clarify several words here as follow:

1.orthodox tax theory - a simple interests rate regardless of transaction.

2.special purpose vehicle - is "coined word or buzzword" for temporary entity handling a particular transaction (in this case, "tax on international trade"); special purpose vehicle is in the FORM of BANK or GROUP.

since this is a metagaming it is in the form of REGION or NATION, or whatever corporation you want to create...

3.since this metagaming is not particular on tax policy on nations (and normally pre-programmed the way we decide issues for our country) the micro/macroeconomics is not really working as in real world, so the best thing i could suggest in the abstract is

"lack of congruence between its micro and macroeconomic elements"

which means there are no really element of tax where we/leaders of nation could decide.

4.credit-linked note - in real world "credit linked note is a security created through a special purpose company or trust, designed to offer investors par value at maturity unless a referenced credit defaults. In the case of default, the investors receive a recovery rate."

but for the purpose of metagaming, i made it define as simple as "contract"

you might ask "whats that for?" let me ask you this "would you give the good s without you knowing if you will be paid or not?" lets face it we cant withdraw billion bucks in the bank then pay in outright.


this is for the purpose of role-play and make it more realistic


on the question of

"We know that transactions (including those on assets, intermediate and secondhand goods) have grown much more rapidly than inside product and that will appear as negative return to local product whenever importing is present."

please telegram The Armed Republic of Hague Prague, thats her idea dude. i can explain but better ask her.


tnx for the comments :)

ok, whats next? :p

i think the formula is ok but make the resolution simple, say, simple words. ;)

Reading this makes me want to propose a repeal of act #83.