Talk:Economic Recovery Package, 651

Economic Recovery Package, 651 Klaus Mikaelson OP

— 02/06/2023 10:41 AM

Tabled by Erich Crysler, MGA, Independent, as an independent member's bill. Economic Recovery Package, 651 A resolution to assist the citizens of Kodiak in recovering from the recent war with TGN. https://kodiak.wiki/wiki/Economic_Recovery_Act,_649 Proposed by Erich Crysler, MGA, Independent. Voting is presently set for 20 Feb 2023 The Kodiak Republic Wiki Economic Recovery Act, 649 The purpose of this bill is to facilitate economic recovery following the war with TGN. This shall be achieved by adopting a monetary policy of quantitative easing... Klaus Mikaelson OP

— 02/06/2023 10:41 AM

@Assembly Member This proposal is now opened for debate. Erich Crysler -- Alsozar [UKN] — 02/06/2023 10:56 AM I believe the measures presented in this bill are very important for facilitating high short-term economic activity as well as developing a strategy for long-term economic growth through encouragement of foreign investment. Klaus Mikaelson OP

— 02/06/2023 1:56 PM

I believe that the measures proposed are in good intent, but I do worry about the expansion of mining operations, especially in a part of the country that is already quite beat down Mining in general tends to make me nervous Erich Crysler -- Alsozar [UKN] — 02/06/2023 1:59 PM Well we need to start mining anyways to fulfill our treaty with TGN. The bauxite deposits in the Darrent are a very lucrative source of direly needed government revenue, especially after the extra billions of florins of debt incurred after the war with TGN directly and indirectly. If you are worried about Kodiak potentially developing Dutch Disease, then I’ll tell you I am drafting a bill that will responsibly manage the funds gained from mining if expansion is permitted. Klaus Mikaelson OP

— 02/06/2023 2:36 PM

My main concern is usually more environmentally focused Erich Crysler -- Alsozar [UKN] — 02/06/2023 2:44 PM That’s fair but right now I’d prioritize the economy over the environment. Subsidies for mining can be scaled back later on and revenue generated from mining can be invested into environmental initiatives. All operations are and will be done under our current pollution controls to mitigate damage to the environment. Klaus Mikaelson OP

— 02/06/2023 2:46 PM

subsidies can be scaled back, but the damage done often can't be fixed Erich Crysler -- Alsozar [UKN] — 02/06/2023 2:53 PM The amount of funding for mining subsidies can be negotiated but I will not budge on the expansion of mining in the Darrent through subsidies. Klaus Mikaelson OP

— 02/06/2023 3:05 PM

Again, my problem has nothing to do with funding, but the long-term environmental impact I look forward to hearing from others. 🙂 Erich Crysler -- Alsozar [UKN] — 02/06/2023 3:15 PM Well you’re against the expansion of mining and the method discussed in the bill to do so is through subsidies. I assume you’d only support no expansion John Edwards [KWP] — 02/06/2023 5:19 PM Recommendations for sustainable mining options? We are obliged to mine the area so it has to happen one way or the other but if we can do it better... Luik Oule [KWP] — 02/06/2023 5:27 PM One idea would be to adopt more sustainable and environmentally-friendly ways of storing and disposing of dredged material. Byproducts of dredging are often left at the mining site, with no proper disposal system. This is one of the most majorly overlooked sources of pollution in mining, and often harms the local environment long after the mine is gone, preventing the ecosystem from rebuilding. Erich Crysler -- Alsozar [UKN] — 02/06/2023 5:55 PM To add onto that, we can look into potential uses for mining byproducts. Luik Oule [KWP] — 02/06/2023 6:01 PM That could help offset some of the costs associated with proper containment/storage of the byproducts. Aaron Tonnesen - New Asden — 02/06/2023 6:13 PM I believe that the mining is essential given the current state of the economy, no matter the environmental effects It will boost foreign investment, lower the ridiculously high unemployment percentage, and increase Kodiak’s globalized economy Erich Crysler -- Alsozar [UKN] — 02/06/2023 6:32 PM But mining pollution regulations can be tackled in a separate bill, I’d like the discussion to be mostly centered on the contents of this bill or issues that can be addressed in it Luik Oule [KWP] — 02/06/2023 7:35 PM Fair point, but before we go any further I would like some basic protections written into the bill, with the requirement that a bill of regulations on mining has to be written in the near future. Erich Crysler -- Alsozar [UKN] — 02/06/2023 8:02 PM I would like any specific protections and regulations to be stated and I’ll see if they’ll fit within the bill Mivod Hlaja [KWP] — 02/07/2023 12:12 AM Stepping away from mining, is this the time to talk about nationalizing the energy industry? John Edwards [KWP] — 02/07/2023 12:13 AM It's a discussion to be had and a good time to have it, probably not in the discussion for this bill however. Mivod Hlaja [KWP] — 02/07/2023 12:38 AM I did a wee bit of research and it looks like the main contaminant from the mining itself is metal dust in the air. Add a clause restricting the amount of airborn dust a mining facility can produce? Erich Crysler -- Alsozar [UKN] — 02/07/2023 7:12 AM How about the mining subsidies will go towards maintaining proper ventilation and waste disposal systems instead of a hard limit on airborne dust? This way we can ensure that mining facilities have the best possible systems to deal with pollution Mivod Hlaja [KWP] — 02/07/2023 8:23 AM That sounds good W Magnus Ward (NUP) — 02/08/2023 12:38 AM on the three articles: 1) I would personally prefer that we avoid printing money just to pack into the pockets of banks and investment firms. If we are going to choose to print money, we should disperse it to families and workers who will be best placed to spend it on economic consumption 2) I may propose (and do not mean to suggest it is the only option) that we could consider that every economically productive pursuit will harm the environment. Where some productive options are obligatory (we all need steel) then instead of harming the productivity of that enterprise, we should pay back the harm with greater value. I would suggest that we should open more land to mining and refinement, and in the same stroke of the pen, protect double that land as state-owned protected nature reserves. 3) I am absolutely against the idea of paying foreign capitalists to extract profit from Kodiaker enterprise. 2.4 billion florins spent just on sending money to overseas investors? Most companies barely post a profit of 10% of revenue. with 30% commercial taxes, we'd need these credits to magically generate 72 billion florins in turnover at a minimum just to break even. My suggestions then would be that we create a stimulus package and not participate in QE, and that we avoid foreign tax credits and instead provide local business subsidies and innovation grants where we can be sure that even wasted money stays in kodiak. Erich Crysler -- Alsozar [UKN] — 02/08/2023 7:44 AM 1) A key difference between quantitative easing and stimulus checks is that QE does not give out “free” money unlike SCs. The government buys a plethora of long-term bonds from banks which have interest on them, so in the end the government will end up with more money than they gave away. The banks now have a great incentive to loan and invest this money to promising or stable businesses or else they’ll just lose money; banks generally tend to make much safer and smarter investments than Joe Schmo due to banks’ sheer personnel and resources. QE is much more efficient in how the money is spent than SCs. Also, I believe dedicated, organized services for the lower and middle classes is far more efficient than just giving them money with no liability. 2) I’m going to amend the bill to subsidize proper ventilation and waste disposal systems for all mining operations. Of course we’re going to limit the amount of land that can be opened for mining but this way environmental damage can be mitigated without hurting the company’s bottom line. To address your idea, I’m not sure if I’m keen on fencing off productive land. Hopefully that addressed your statement. Erich Crysler -- Alsozar [UKN] — 02/08/2023 8:01 AM 3) The funding for foreign investor tax credits can be scaled back or even removed with enough pushback from the GA. However, Kodiak desperately needs large amounts of foreign capital and trade to raise the GDP to high levels. The aim of this bill is to promote foreign investment and trade, so I’d be open to alternative initiatives that promote that same goal. Of course local businesses subsidies and promotion of foreign invest and trade are not mutually exclusive, we could do both. Erich Crysler -- Alsozar [UKN] — 02/08/2023 4:07 PM I have amended the bill, inserting this clause at the appropriate position. This affected the positioning of existing clauses within the same article.

2.3 - These mining subsidies shall first and foremost go towards establishing proper ventilation and waste disposal systems on mining sites and facilities. Charlotte Groves (Juliette) — 02/09/2023 1:57 AM It could be prudent that there be a limitation on how much foreign capital can be invested into a Kodiak organisation or company (% ownership for example). Which in turn might mean a lower budget requirement, but simultaneously provide some protection domestically.

Foreign tax credits right now reads as unlimited however and could be anywhere from almost nothing to the maximum amount spent, should there not be a specific number? (e.g., x cents per 1 florin? OOC: what is the smaller unit for florins? Is there one?). In 3.1: at least 1,00,000 florins worth of assets, is this 100,000 Florins, or 1,000,000 Florins? Erich Crysler -- Alsozar [UKN] — 02/09/2023 7:09 AM Oh sorry it’s meant to be 1,000,000 florins Silly typo :P Erich Crysler -- Alsozar [UKN] — 02/09/2023 7:13 AM I think a limit would be decided by the company itself when it IPOs or if it decides to privately sell shares of itself. I don’t see a reason for the government to legislate that, but I might give them the right to set a limit on how much foreign capital can be invested in a company individually. Charlotte Groves (Juliette) — 02/09/2023 7:47 AM So part of the reason I mentioned that and I think it is worth discussing in the GA is that there can also be downsides to foreign investment that runs counter to the intent of this bill which is to encourage growth here.

I should mention that I see foreign investment as a necessity right now to open our doors to the global community, and benefit from that economic growth, so long as we do so responsibly as well as give due consideration to domestic matters as well - which I believe we have or are doing so for the benefits of course.

So in the interest of our own economy, a few downsides that could occur include significant outsourcing of jobs (though unlikely due to the availability of workers here) or transfer of profits off-shore, loss of control over critical areas such as agricultural supply chains, domestic production, even mineral wealth making it back to Kodiak, as well as critical security issues such as sensitive technology or industry or loss of control or impairment of critical infrastructure.

Now i'm not saying that is guaranteed, but unrestricted investment does open the door for the downsides to appear, or a foreign actor using us for their own gain. Which as the GA we perhaps should think about this and how we might mitigate the risk.

That said, regulation is really only one possibility and not at all the only option we have here. Another possibility might be to allow the Ministry (Commerce?) to review large foreign deals or deals that would affect some critical concerns (such as my examples, perhaps there are others that I haven't thought of), if it is desired to not set a hard regulated limit on amount invested.

There could be other solutions as well, and I am happy to hear about alternatives. Of course, any counter-arguments please feel free to be heard, but as yet I am not convinced that we haven't completely considered the risks yet in this debate. In this I am happy to consider all sides of the debate here. Erich Crysler -- Alsozar [UKN] — 02/09/2023 7:56 AM We could restrict certain key industries from investment (i.e arms manufacturing, mining, etc.) if we’re concerned that foreign interests collide with domestic ones. Perhaps a hardcap of 15 or 20% of a company’s stock can be comprised of foreign capital, but allowing companies to independently determine their personal limit within that range. Of course to mitigate off-shore profits we could implement a diverted profits tax Klaus Mikaelson OP

— 02/10/2023 9:07 PM

thoughts from other members of the Assembly? John Edwards [KWP] — 02/10/2023 9:30 PM How does the low value of our Florin affect the options being discussed? Erich Crysler -- Alsozar [UKN] — 02/10/2023 10:54 PM Creating new currency through QE will probably increase inflation but as long as it’s handled mildly it should be controllable and the benefits outweighs the cons. QE also generally has a smaller effect on inflation than stimulus checks.

Expansion of mineral production will of course increase supply for global demand. Our low value currency makes it easier for foreign markets to purchase Kodiak goods so they’ll probably still buy them even if we institute steep taxes and tariffs. Since exports will probably increase dramatically, there will be more demand for our currency on the international marketplace helping to stabilize it.

Promotion of foreign investment would bring in a lot of foreign currencies into the Kodiak economy. If we want to increase interests rates on government bonds to curb inflation, it’ll also have the side effect of attracting foreign investors.

Not sure if that answers your question 😅 Reifyrm Visdvk [I] — 02/13/2023 12:14 PM I am against this proposal due to being against Quantitative Easing, and the Ministry of Commerce and Labour issuing Tax Credits when the collecting of Taxes falls under the Kodiak Revenue Directorate which is under the Ministry of Revenue and Treasury. As such, I will be voting against this proposal in its current form. Erich Crysler -- Alsozar [UKN] — 02/13/2023 2:04 PM The latter can be easily amended but if you cannot support past QE, economists tend to agree that QE works in mild amounts. I would like to hear your explanation of why you are against QE. Erich Crysler -- Alsozar [UKN] — 02/13/2023 3:47 PM I added an additional clause to Article 1: Quantitative Easing

1.2 - After 12 months from implementation, this article will be automatically removed unless the General Assembly wishes and votes to renew it. I also granted the responsibility of managing foreign investor tax credits to the Ministry of Revenue & Tax. Reifyrm Visdvk [I] — 02/13/2023 3:50 PM That is acceptable. I will vote for this proposal in this current form. Klaus Mikaelson OP

— 02/14/2023 3:01 PM

Any other discussion on the proposal as amended? Mivod Hlaja [KWP] — 02/14/2023 7:23 PM Apparently not. W Magnus Ward (NUP) — 02/14/2023 7:25 PM I will need a moment to read the present document W Magnus Ward (NUP) — 02/14/2023 7:32 PM I must also object to the use of Quantitative Easing. I am sceptical that options which lead directly to inflation of the Florin, and also weakening our currency strength internationally will do anything except harm business. I would be surprised if the GDP growth were higher than inflation, and if I am right, what we would ultimately end up doing is paying foreign banks to divest from our economy. I am certain that QE would be more harmful than any benefit Article 2 and Article 3 may introduce. Erich Crysler -- Alsozar [UKN] — 02/14/2023 9:34 PM QE in mild and controlled amounts has been proven to stimulate economic activity and promote the lending of money. What you say would be correct if we constantly and uncontrollably print money. This is a very short-term policy focusing on stimulating our stagnating economy. The best outcome of QE is when it is no longer needed in the near future, we won’t be uncontrollably printing money like Zimbabwe. Luik Oule [KWP] — 02/14/2023 9:38 PM Helicopter money is never a good idea, but I agree with Mr. Crysler that QE in small amounts to help grow the economy can be a good idea. W Magnus Ward (NUP) — 02/14/2023 10:09 PM While I agree that helicopter money is not a better alternative (no inflation-based policy would be a better alternative) I'm interested in listening to the Deputy Chancellor explain why the government is not in favour of it. Mivod Hlaja [KWP] — 02/14/2023 11:27 PM One thing I did notice is that 2.4 and 2.5 could use a rephrasing to better fit with the National Energy Act. Something like this: 2.4 The Department of Utilities shall recieve 243 million additional florins in funding.

2.5 Renewable energy consists of wind, solar, hydro, and nuclear power. This funding will only be used to create renewable energy facilities, by any legal means. Erich Crysler -- Alsozar [UKN] — 02/15/2023 7:59 AM I’ll amend 2.5 appropriately but I think I’m going to leave 2.4 untouched as the subsidies don’t solely include subsidizing utilities. Mivod Hlaja [KWP] — 02/15/2023 12:12 PM I chose the Department of Utilities as they're the parent organization for the national energy company, but it doesn't have to be changed. Luik Oule [KWP] — 02/15/2023 4:41 PM To clarify, unless explicitly stated, my views are my views alone, and do not represent any organization that I'm apart of. Charlotte Groves (Juliette) — 02/16/2023 3:37 AM I'm wondering if there are any other thoughts on this discussion (other than me), if not I'll go ahead and make a suggestion but I really want to know if someone else has an alternate feeling about this (you may have to scroll a little bit above this message for full context). Klaus Mikaelson OP

— 02/16/2023 8:22 AM

I think it's a good suggestion, I just wonder if it will be a deterrent to companies who may be looking at building in Kodiak Erich Crysler -- Alsozar [UKN] — 02/16/2023 11:01 AM The limit will be implemented to a degree if the GA is exceptionally worried about the consequences of large foreign investment. Personally, I would rather not implement a broad limit to foreign investment and leave it up to the individual company to decide as I think we should get as much capital as we can. A diverted profits tax is planned however to prevent large amounts of profit being transferred outside the country. Erich Crysler -- Alsozar [UKN] — 02/16/2023 3:54 PM Amended for Clarification: 2.5 - Renewable energy consists of wind, solar, hydro, and nuclear power. This funding will only be used to create renewable energy facilities, by any legal means.

Klaus Mikaelson OP

— 02/18/2023 5:11 PM

If there is no other considerable debate in the next 24 hours, I will move to start the vote W Magnus Ward (NUP) — 02/18/2023 5:13 PM No more comment from me. I strongly urge the members of this house to vote against these measures. We will not be improving the economy by purposefully driving inflation. Charlotte Groves (Juliette) — 02/18/2023 5:47 PM Just a quick one and apologies for not responding sooner after my previous message - so my suggestion here then is that maybe we can do this in a tiered manner.

Tier I - Restricted (e.g., Arms Manufacturing, Mining, Important Infrastructure such as Ports), this is either fully restricted or heavily restricted (lower percentage than Tier II), Tier II - Others that might be restricted dependent on importance as determined by the Ministry of Commerce and Labour? The Ministry should determine this (and it would be a higher percentage ceiling than Tier I). Anything else we do not restrict.

Secondly, if we are going ahead with foreign tax credits we should specify how much per florin (or a percentage if people prefer to think about it that way also). This can then be adjusted by amendment in future. Erich Crysler -- Alsozar [UKN] — 02/18/2023 6:01 PM I have reason to believe that other than possibly an initial shock, inflation will not skyrocket to uncontrollable levels. The reason I believe this is the method which the money is introduced which instead of a large initial and direct injection into the economy, it is more slow and gradual as it is introduced through private loans. Banks and other financial institutions will carefully consider investments and root out the best ones. This means that the wider economy will not feel a huge inflationary shock as the new money is spread out carefully over a longer period of time through private loans. Charlotte Groves (Juliette) — 02/18/2023 6:03 PM I think in some way the 12 month limitation provides us the opportunity and mechanism to analyse this carefully over the period. W Magnus Ward (NUP) — 02/18/2023 6:05 PM I am skeptical that we can buy our way into a better economy by creating ways to harm our currency and funnel them offshore. We need to be supporting our small and medium businesses and building an environment where Kodiakers invest in Kodiakers. Charlotte Groves (Juliette) — 02/18/2023 6:25 PM I agree supporting our businesses in the long-term will be key, and I can say that this is something I am looking into as part of longer term solutions to reverse our country's unenviable economic conditions.

Regarding the nature of this bill however, I believe the intentions are to inject life into the economy in the immediate term (relatively) as has been discussed by Mr Crysler, and he is certainly aware of the potential issues with economic benefits going offshore. He has mentioned that he'll be introducing new laws relating to this issue.

That said, I leave it to the GA and Erich to determine if they agree with my thoughts on tightening the bill some more. My intentions behind that suggestion is to ensure that the Ministry of Commerce has the ability to proactively identify and protect our local industries, as well as explicitly protect some rather important areas. As well as tightening the intent on tax credits. Erich Crysler -- Alsozar [UKN] — 02/18/2023 6:53 PM Indeed, I think it is important that we restrict high critical sectors as you have mentioned (although I think it is beneficial to work with allies on our MIC). I’ll amend another article to the bill soon to go over these restrictions; I think a tiered system would work well here and I will add it to the bill. Regarding investor tax credits, I was thinking somewhere in the range of 5,000-10,000 florins reimbursed per 1,000,000 florins invested into the Kodiak economy. The specific number can be up for debate of course. Like Ms. Groves said I have legislation planned that will tackle a potential exodus of profits offshore. Our work for local small and medium businesses continue, but it is apparent that a serious lack of foreign investment (evidenced by the closure of the clothing factory) has led to prolonged economic stagnation and will lead to a severe decline. Alfonso Sadurin — 02/19/2023 8:57 AM I support the intent of the lawmakers pushing forward the bill, but may I convince the Assembly that it should be thrown out altogether for multiple reasons:

(1) The Central Bank should remain independent and be free to determine such policies. The legislature should not be undermining the Central Bank's independence on pursuing monetary policy. The rollback of the Law would take time and effort, and could be laced with political implications — which may be too late before catastrophic implications on the economy materialize.

(2) On the matter of mining subsidies, the Government should focus more on strengthening the economy as a whole rather than focusing on the mining sector. Building a broader base for the economy would make Kodiak's economy more resilient to more troubles.

(3) I agree for the push for renewable energy, and welcoming foreign investment in renewable energy but the tax credits and subsidies should not be pegged as such. It should be determined by the Ministry of Finance if appropriate with the budgetary constraints of the Kodiak Republic.

(4) Tax credits and subsidies for foreign investment must be (a) targeted, (b) milestone-based and (c) in-line with the national development objective. Targeted meaning key industries which are underinvested should be the focus of these credits and subsidies. Milestone-based meaning they should not be mindlessly throwing money and buying equipment, there should be key objectives that they need to meet such as job creation, profitability, improvement of local supply chain networks, among others. In line with national development objective meaning that the businesses that would be created by these foreign investments should be geared towards improving the quality of life of Kodiak citizens, strengthening the economy and does not corrupt the youth or society. We do not want to encourage brothels, opium dens and such in our beloved country. Erich Crysler -- Alsozar [UKN] — 02/19/2023 9:53 AM 1) Due to the limitations of the simulation, we can't feasibly and reasonably simulate an independent "central bank committee" (This is just something to do with the game, Democracy 4 that we use, even the USA allows you, in game to directly activate these monetary policies).

2) These two are not mutually exclusive. We can support our broader economy while also strengthening our mining sector. I'll remind the entire GA that we essentially fought an entire war over these large bauxite deposits in the Darrent and that we still need to fulfill our treaty with TGN. This isn't even to mention our budget deficit. Also, I plan on introducing a bill that will create a Sovereign Wealth Fund funded by taxes on mining; this will allow us to sufficiently diversify our mineral wealth in other sectors and prevent Dutch Disease.

3) We have to peg a budget for these policies (just how the simulation works :/). Also, I am currently the Minister of Revenue and Treasury.

4) I will soon be amending the bill to include an entire extra article detailing how we will restrict and control foreign investment. This will work in a tiered manner where certain industries will either be off-limits or heavily restricted, somewhat restricted, or unrestricted. You make an interesting point in how tax credits should be rewarded, how does a creation of a "foreign investor tax credits council" (FITCC), which would oversee and determine if certain investments have met a goal set by the FITCC? Alfonso Sadurin — 02/19/2023 10:05 AM 2.) If I may, on top of taxes from mining. The Government could also consider having a stake in the ownership of these mining companies to steer them in the proper direction and to put more profits in the Sovereign Wealth Fund.

4.) Foreign Investor Tax Credits Council could be a good idea with tax credits continued to be granted so long as the goals are being met. The goals should be reviewed by an independent board every now and then to benchmark these goals with the wider economy. Erich Crysler -- Alsozar [UKN] — 02/19/2023 10:29 AM 2) Since we are giving them subsidies we have some amount of leverage on these mining companies. Alfonso Sadurin — 02/19/2023 11:11 AM Maybe rather than subsidies, how about a stake instead? Erich Crysler -- Alsozar [UKN] — 02/19/2023 11:14 AM please elaborate Erich Crysler -- Alsozar [UKN] — 02/19/2023 12:05 PM I have made the following amendments to the bill. Please keep this updated version in mind during discussions.

Amendments to existing articles: 3.4 - A total of 600 million florins shall be allocated quarterly by the Ministry of Revenue & Treasury to fund foreign investor tax credits. The allocation of tax credits shall be overseen by the FIC created in clause 4.1.

Entirety of Article 4: Restriction & Regulation of Foreign Investment, is now added. 4.1 - The Foreign Investment Council (FIC) shall be created under the Ministry of Revenue & Treasury. It is the FIC's responsibility to:

    4.1.1 - Create and review goals investors have to meet to be eligible for tax credits defined in Article 3.

    4.1.2 - Review the eligibility of foreign investors who      want to apply for tax credits according to the goals  defined by the FIC.

    4.1.3 - Organizing the tiers of restrictions on the  amount of foreign investment in any company, sectors or industry in accordance with clause 4.2.

4.2 - The organization of restrictions on foreign investment in specific sectors (sectors can mean anything from entire industries to specific companies) will be defined in these following tiers:

    4.2.1 - Tier 1: Heavily restricted sectors. Sectors of the economy which are completely off limits to foreign investment (unless specified in specific treaties or bills).
    4.2.2 - Tier 2: Well-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total investments. Foreign investments can not go over 10% of the total amount of investments in the sector.
    4.2.3 - Tier 3: Mildly-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total investments. Foreign investments can not go over 25% of the total amount of investments in the sector.
    4.2.4 - Tier 4: Unregulated sectors. Sectors of the economy which have no regulation on the amount of foreign investment they can receive.

4.3 - These specific sectors shall be defined in accordance with clause 4.2:

    4.3.1 - Tier 1: The defense industry and mining industry.
    4.3.2 - Tier 2: The agriculture industry, rail infrastructure, port infrastructure, airport infrastructure, and the transportation industry..
    4.3.3 - Tier 3: The healthcare industry, energy industry, real estate industry, and news outlets.
    4.3.4 - Tier 4: All sectors not previously defined in clause 4.3.

Alfonso Sadurin — 02/19/2023 5:00 PM For 4.2.2 and 4.2.3 rather than limiting the total amount of investments, probably it would be better if you limit foreign ownership in equities.

4.2.2. could have up to 30% foreign equity ownership 4.2.3 could have up to 49% foreign equity ownership

I would suggest that rather than subsidies with no ties, the Government acquires an equivalent shares of stock in the mining sector. We do not want to limit investments since we're encouraging it. We just don't want to be owned by foreigners. Erich Crysler -- Alsozar [UKN] — 02/19/2023 5:58 PM Gotcha I'll change it to equities 49% is too high for my liking but I'll let other GA members voice their opinion on this before I change the numbers Klaus Mikaelson OP

— 02/20/2023 8:03 AM

Are there other acceptable numbers for assembly members? Tom Westbrook — 02/20/2023 10:57 AM Keeping it at 49% means it cannot be entirely owned by foreign share holders which keeps the sector domestic. But by giving foreign investors a decent leeway it could encourage more investment so I think 49% makes sense for mild regulation Lowering the 30% to 12.5% might make the investment tiering a little more linear Charlotte Groves (Juliette) — 02/20/2023 7:47 PM I think equities is fine to base this on, given the investment nature.

RE: Regarding investor tax credits, I was thinking somewhere in the range of 5,000-10,000 florins reimbursed per 1,000,000 florins invested into the Kodiak economy. The specific number can be up for debate of course.

I might lean towards 10k here than 5k, the question really is balancing amount of tax credits versus incentivising. 10k comes to about 1%? Erich Crysler -- Alsozar [UKN] — 02/20/2023 8:06 PM Alternatively, we could allocate a budget for tax credits and let the Foreign Investment Council (defined in 4.1) independently set goals and determine how the money is spent. Charlotte Groves (Juliette) — 02/20/2023 8:11 PM In that case maybe just a cap on maximum tax credits per florin then, and the FIC can adjust from 1% - Cap% as they see fit. Erich Crysler -- Alsozar [UKN] — 02/20/2023 8:15 PM Alright, that sounds good. I’ll make the proper amendments later. Alfonso Sadurin — 02/20/2023 10:37 PM Why not meet halfway with 25%? 20% would allow significant investment, but not too much that they can affect operations. Tom Westbrook — 02/21/2023 6:38 AM 25% works of course Erich Crysler -- Alsozar [UKN] — 02/21/2023 3:19 PM I have amended the existing clauses in the bill. This changes the values for tier 2 to 25% and tier 3 to 49%:

3.4 - A total of 600 million florins shall be allocated quarterly by the Ministry of Revenue & Treasury to fund foreign investor tax credits. The allocation of tax credits shall be overseen and independently determined by the FIC created in clause 4.1.

4.2.2 - Tier 2: Well-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total equities. Foreign investments can not go over 25% of the total amount of equities in the sector.

4.2.3 - Tier 3: Mildly-regulated sectors. Sectors of the economy which are limited in how much foreign investment can be consisted of their total equities. Foreign investments can not go over 49% of the total amount of equities in the sector.

Erich Crysler -- Alsozar [UKN] — 02/21/2023 8:23 PM If there are no more complaints or points of discussion not already addressed, I’d like my fellow assembly members to support a motion to begin voting on this bill. W Magnus Ward (NUP) — 02/21/2023 9:03 PM I just want to confirm the member is aware his QE program is set to run for only 4weeks OOC before its meant to be reintroduced to this assembly and that this is as designed. I also want to ask, the third article indicates a limit to tax credits of 600 million florins - is this a first come first serve basis? Is it possible for an investor to meet all the criteria yet be unable to claim these credits if the fund is over drawn? I'm also at least somewhat concerned about the cross-departmental nature of the bill. We have a tax/revenue change in article 3, as well as a law and order policy in the same article with copyright protections. Then Article 4 is a foreign Affairs Policy with investment restrictions, while Article 1 QE is a Commerce and Industry policy W Magnus Ward (NUP) — 02/21/2023 9:11 PM Where even in the law code would this be situated? - I must contend that regardless of the general agreement of this assembly on its stipulations (against what I think is its better judgements), this bill must be divided into multiple proposals to comply with the conventions of this assembly. Charlotte Groves (Juliette) — 02/21/2023 9:18 PM From an organisation perspective this proposed act could be re-organised into a package that introduces a number of Acts. Erich Crysler -- Alsozar [UKN] — 02/21/2023 9:21 PM I am very aware about the limited nature of the QE policy, it is designed to be a very short-term policy. Foreign investment credits will act as a first come first serve basis, it is designed to incentivize competition and also limit costs in the program. I will reorganize it into a package that would implement multiple different acts. Alfonso Sadurin — 02/22/2023 8:52 AM My concern about the 600 million florins is the sustainability of enterprises founded on the premise of tax credits. If they failed to sustain the tax credits, investments might be short-lived. Alfonso Sadurin — 02/22/2023 8:52 AM I agree I would rather not fix the amount for the tax credits available, but instead benchmark it with the overall economy. Erich Crysler -- Alsozar [UKN] — 02/22/2023 9:11 AM It is 600 million per quarter, which means 2.4 billion florins per year. I think that is plenty for reimbursement, but if you are worried that we will run out too quickly, we could simply increase the budget. Erich Crysler -- Alsozar [UKN] — 02/22/2023 4:58 PM I want to announce that the Economic Recovery Act, 649 is being changed to the Economic Recovery Package, 651 to fit with organizational conventions in the law code.

The Acts that would be implemented under this package are: The Quantitative Easing Act Mining & Energy Expansion Act Foreign Investment Expansion Act Intellectual Copyright Protections Act Foreign Investment Regulation Act I want to stress that this is only a change to the organization of the bill, the contents are essentially the same. Klaus Mikaelson

changed the post title: 

Economic Recovery Package, 651

— 02/23/2023 10:41 AM

Alfonso Sadurin — 02/23/2023 11:47 PM Can we vote on the different acts separately? W Magnus Ward (NUP) — 02/23/2023 11:49 PM I believe it will be up to the government to decide if they wish to divide the package or not. Personally, I feel that I am strongly against enough of the changes that I would vote against the entire package. Klaus Mikaelson

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— 02/24/2023 2:04 PM

Klaus Mikaelson OP

— 02/26/2023 9:53 AM

@Chancellor Is there any update on the desires of the Government? Klaus Mikaelson OP

— 02/27/2023 3:50 PM

@Assembly Member Would the members be opposed to the various sections of this package going to vote separately, or would members prefer to see discussion of each separate discussion before a vote? Erich Crysler -- Alsozar [UKN] — 02/27/2023 3:53 PM Since this bill has already been extensively discussed, I think MPs can simply reference this thread for talking points instead of separating the discussion into multiple threads. Klaus Mikaelson OP

— 02/27/2023 4:05 PM

that was my thought as well, but want to give people a chance to have their say before taking action one way or the other Luik Oule [KWP] — 02/27/2023 5:43 PM I second this motion. Alfonso Sadurin — 02/27/2023 9:28 PM I would like to vote separately on the different acts. Klaus Mikaelson OP

— 02/28/2023 11:34 AM

as an update, I am currently talking with the Chancellor and a few others to come to a decision on how best to display/produce the polling related to this package EasyPoll BOT

— 03/01/2023 10:55 AM

Question Do you approve of the The Quantitative Easing Act?

Choices 🇦 Aye 🇧 Nay 🇨 Abstain

Final Result 🇦 ▓▓▓▓░░░░░░ [8 • 44%] 🇧 ▓▓▓▓░░░░░░ [8 • 44%] 🇨 ▓░░░░░░░░░ [2 • 11%] 18 users voted

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— 03/01/2023 10:56 AM

Question Do you approve of the Mining & Energy Expansion Act?

Choices 🇦 Aye 🇧 Nay 🇨 Abstain

Final Result 🇦 ▓▓▓▓▓░░░░░ [9 • 50%] 🇧 ▓▓▓▓░░░░░░ [7 • 39%] 🇨 ▓░░░░░░░░░ [2 • 11%] 18 users voted

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— 03/01/2023 10:57 AM

Question Do you approve of the Foreign Investment Expansion Act?

Choices 🇦 Aye 🇧 Nay 🇨 Abstain

Final Result 🇦 ▓▓▓▓▓░░░░░ [8 • 47%] 🇧 ▓▓▓▓░░░░░░ [7 • 41%] 🇨 ▓░░░░░░░░░ [2 • 12%] 17 users voted

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— 03/01/2023 10:57 AM

Question Do you approve of the Intellectual Copyright Protections Act?

Choices 🇦 Aye 🇧 Nay 🇨 Abstain

Final Result 🇦 ▓▓▓▓▓▓░░░░ [10 • 63%] 🇧 ▓▓▓░░░░░░░ [4 • 25%] 🇨 ▓░░░░░░░░░ [2 • 13%] 16 users voted

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— 03/01/2023 10:58 AM

Question Do you approve of the Foreign Investment Regulation Act?

Choices 🇦 Aye 🇧 Nay 🇨 Abstain

Final Result 🇦 ▓▓▓▓▓░░░░░ [10 • 53%] 🇧 ▓▓▓░░░░░░░ [5 • 26%] 🇨 ▓▓░░░░░░░░ [4 • 21%] 19 users voted

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alarm_clock: Poll already ended (12 days ago)

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— 03/01/2023 10:59 AM

@Assembly Member ATTENTION MEMBERS: the package has been split into 5 separate votes, each part can be read and reviewed on the wiki under the economy recovery package. Please make sure to vote in each poll, they will close in 3 days Tankai Yunuwagi (Rolisica) — 03/01/2023 11:00 AM Why I have to vote Klaus Mikaelson OP

— 03/01/2023 11:00 AM

You don't have to vote, I'm just drawing attention to the fact that there are 5 polls here Tankai Yunuwagi (Rolisica) — 03/01/2023 11:01 AM O h Klaus Mikaelson OP

— 03/04/2023 10:08 PM

@Assembly Member With voting closed, I can certify the following: - The Quantitative Easing Act has FAILED in the assembly. - The Mining and Energy Expansion Act has PASSED - The Foreign Investment Expansion Act has PASSED - The Intellectual Copyright Protections Act has PASSED - The Foreign Investment Regulation Act has PASSED