COMMUNITY - FORUMS - GENERAL DISCUSSION
FISCAL AND TAX POLICIES KINGDOM OF VORNAIR

This post is the start of what will be the fiscal policies for the Kingdom of Vornair, as well as a forum allowing the community to voice ideas on how mechanics will/should work. We will be starting monthly open door sessions on Discord chat as well. Please bear in mind that development of the actual game mechanics will lead to more specific fiscal plans.

Below is the first draft developed by the High Council with input from Jarls of the Round.

Budget

A budget will be created for the year with quarterly flexible budgets (flex) to track actual revenue with the original plan

                  i.      A fiscal calendar will be provided

The flex will have the number of periods of actual revenue plus the updated forecast for the remaining periods of the year

The yearly plan will be made available to the Jarls of the Round, the Aesir and any others as needed.

Each Jarldom will be assigned a cost center; this number will be required for submitting and viewing financial information.

Financial Forecasting

Every quarter each of the Jarls will need to provide an updated forecast that projects their expected revenue for the outer periods of the year.

This forecast will be updated and compared to the original budget (plan) to track progress and validate assumptions.

Account Reconciliation

Each month, taxes and other collections will be noted and verified for each Jarldom.

Any irregularities will be reported even if covered by late approved programs.

Reporting

Revenue will be reported as adjusted net.

Reporting of monthly revenue, expenses and operating income will be done as a single report for each Jarldom against the current budget.

Auditing

The use of a third party, non-active player will be used to audit finances.

Programs

As allowed and approved by the Jarls of the Round, the ability to use revenue for specific programs will be allowed.

These programs will be expensed to the appropriate cost centre.

Banking/Currency

This is a program that would need Jarls of the Round approval to setup.

Loan requests will fall under levels of authority for applicable amounts.

Investments made to the treasury will fall under levels of authority for applicable amounts; terms will require approval.

Compliance

Regular review of policies and procedures will be required.

Taxes

The taxation system will require ducal taxes to be paid monthly.

To reach the total needed for Kingdom level initiatives, programs, and emergency funds, we will take the total taxation and break it down as follows:

Each Jarldom is responsible for an equal portion of a flat 30% of the total needed to fund the Kingdom level budget.

The other 70% will be an assessed amount based upon each Jarldom’s estimated/reported income.

Safety Net Plan

It is the position of the Chief Treasurer to recommend the 'Safety Net plan' for the taxation of the Kingdom. The goal of this plan is to recognize the needed balance between known financial obligations and future potential liabilities. This plan also extols the virtue of transparency with a good deal of fairness and accountability between Kingdom and Jarldoms. This recommendation allows for a clearer understanding of our financials and simplifies our communication of financial matters.

The Safety Net plan allows the Kingdom to accrue more than it would directly need within a period if there was a likely deviation of the forecast in order to catch any changes within an expense category. This is done at the expense of the whomever has the tax burden as the addition of a percentage based tax will create variability within impacted markets.

The Safety Net expense category will not exceed 10% of the budget.


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1/12/2017 12:59:25 AM #1

Ideas for taxes. What is taxed? How?


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1/12/2017 12:59:41 AM #2

What are the programs that you think Kingdom taxes should pay for/subsidize? Roads? Defense? (What kinds of defense? National Army? Internal Police? City Walls?)Trade? Religious buildings?


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1/12/2017 12:59:56 AM #3

Saved


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1/12/2017 1:05:19 AM #4

YAY FINANCES WARRANT ALL CAPS USAGE

But how can you plan budgets if we have no idea on how much things cost, the value of money, wages, etc? We know absolutely nothing on the economy so delving into numbers now doesn't make much sense.


1/12/2017 2:58:42 AM #5

this is why there are no numbers yet Yorick but only a rough outline of how things will be managed on a financial level.


1/12/2017 3:05:14 AM #6

boooo taxes!!!

Burn it dowwwn! ;-)


1/12/2017 3:39:40 AM #7

No taxation without representation! We never voted for a King!

Dump the Teas!

This is no normal Tea. These are Tea Bags of Freedom. We are dumping Freedom into the Ocean, and letting it spread to the 4 corners of the World!


Right now, I'm just a sloth. Just a motionless sloth. A sinful sloth. Please don't make me work. Can't you see how troublesome it would be to get up everyday and actually be productive? Just leave me be. Let me be a sloth.

1/12/2017 7:46:25 PM #8

CountFrancisDrake, you are correct. We cannot use actual numbers yet. We are exploring economic ideas. Think the writings of Adam Smith vs the year end Financials of Microsoft.


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1/12/2017 8:41:11 PM #9

Posted By JackofShadows at 7:46 PM - Thu Jan 12 2017

CountFrancisDrake, you are correct. We cannot use actual numbers yet. We are exploring economic ideas. Think the writings of Adam Smith vs the year end Financials of Microsoft.

Considering we have no clue how any of the in game mechanics work it's a little premature to compare yourself to Adam Smith.

The comparison would be better described as the difference between the economic ideas of Gene Roddenberry and the bottlecap system of the Fallout universe. Both of course, make more sense at this point in time than your proposed system.

Fiscal projections and third-party non-active players as auditors really? I hope the people of Vornair enjoy Accountancy Simulator 2018 when it comes out


Coming Soon(tm)

1/12/2017 8:42:40 PM #10

Posted By chipla at 2:41 PM - Thu Jan 12 2017

Posted By JackofShadows at 7:46 PM - Thu Jan 12 2017

CountFrancisDrake, you are correct. We cannot use actual numbers yet. We are exploring economic ideas. Think the writings of Adam Smith vs the year end Financials of Microsoft.

Considering we have no clue how any of the in game mechanics work it's a little premature to compare yourself to Adam Smith.

The comparison would be better described as the difference between the economic ideas of Gene Roddenberry and the bottlecap system of the Fallout universe. Both of course, make more sense at this point in time than your proposed system.

Fiscal projections and third-party non-active players as auditors really? I hope the people of Vornair enjoy Accountancy Simulator 2018 when it comes out

Basically this. Have fun Vornair.


“He that keeps not his arms in time of peace will have none in time of war.”

1/12/2017 10:59:27 PM #11

>Each Jarldom is responsible for an equal portion of a flat 30% of the total needed to fund the Kingdom level budget.

This is so backwards. Instead of deciding the budget and making your underlings pay for that, how about seeing what your duchies can reasonably pay in taxes and decide your budget based on on that?

1/13/2017 12:01:48 AM #12

Considering that the economic system so far seems to be bottom up, rather than top down, it's far to early to determine a system of taxation--we don't even know the mechanics behind this yet. It could very well be that planning a financial strategy, ahead of knowing what you have to work with, ends up being a wash.


1/13/2017 4:27:06 AM #13

Posted By mickdude2 at 5:59 PM - Thu Jan 12 2017

>Each Jarldom is responsible for an equal portion of a flat 30% of the total needed to fund the Kingdom level budget.

This is so backwards. Instead of deciding the budget and making your underlings pay for that, how about seeing what your duchies can reasonably pay in taxes and decide your budget based on on that?

"The other 70% will be an assessed amount based upon each Jarldom’s estimated/reported income."

It's not really backwards. 5 duchy average, 30%. 8% per duchy flat then another percentage based off of what you can pay off of your assessed value.


I don't know anymore.

1/13/2017 4:28:37 AM #14

Posted By Xylas at 7:01 PM - Thu Jan 12 2017

Considering that the economic system so far seems to be bottom up, rather than top down, it's far to early to determine a system of taxation--we don't even know the mechanics behind this yet. It could very well be that planning a financial strategy, ahead of knowing what you have to work with, ends up being a wash.

Nothing in this document is reliant on any type of game mechanic or in-game system other than what is confirmed.


I don't know anymore.

1/13/2017 4:49:27 AM #15

So what happens if they can't pay it or won't pay it?


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