Since the supply of labor in the market is in short supply, and it is reasonable for workers to demand higher wages, the establishment of the "Far Eastern Economic Community" will only add some bargaining chips to the working class, and Roland does not believe that this will significantly weaken the economic vitality of the kingdom of Koras, and given the incentives for technological innovation brought about by the increase in labor costs, the benefits generally outweigh the disadvantages.

How could the rulers of Parnia and Beacon Hill not be as calm as Roland. The poor and the rich are neighbors, and the rich inevitably have more concerns, which Roland understands. After several days of negotiations, Lady Theodora and André accepted Roland's offer of a compromise.

To put it bluntly, this is a simplified version of the visa system. Residents of the Kingdom of Kolas can apply for a travel visa from the local government department, and those with this document can freely enter Parnia and Lighthouse Mountain. There are two restrictions on travel visas, one is that there is a time limit, and the visa must leave the country before it expires; The second is that they are not allowed to work abroad.

In fact, the visa system does not strictly restrict foreign workers, and no one knows this better than Roland as a visitor to the earth. However, it is better to have rules than no rules, and this is only a stopgap measure, with the rapid growth of the economic power of the kingdom of Kolas, the level of labor wages will rise, the gap between the rich and the poor with Parnia and Beacon Mountain will gradually decrease, and the incentive to work abroad will gradually decline, and then the visa system can be waived and the border can be opened to free movement.

The second central topic of the FEF is the unification of the fiscal system and the avoidance of double taxation.

For individuals, whether they are employees or employers, paying taxes is a negative incentive that inevitably reduces the total welfare of society. If the tax burden is too high, people will lose the motivation to start a business, the economy will fall into recession, unemployment will soar, and the overall tax payment will fall. On the flip side, if the tax rate is too low, it is not necessarily a good thing, and if the government is unable to secure an adequate fiscal situation through taxation, it will have to cut the budget within its means, and the economy will be dragged down by insufficient investment in education, health, and infrastructure. Therefore, designing a reasonable tax system is a major matter that has a bearing on the national economy and the people's livelihood.

The current tax system in the countries of the Far East is generally reasonable, but there are unsatisfactory details, one of which is the widespread phenomenon of "double taxation".

The tax system usually adopts two principles, one is the personal principle, that is, taxation is based on nationality, as long as you still retain the nationality of a certain country, then even if you work abroad for a long time, you still have to pay taxes to your home country; The second is the principle of territoriality, which means that in the country where you work or do business, you must pay taxes to the country where you are located in accordance with local laws.

Most of the countries on the planet adopt a tax system that combines the principle of personal and territoriality, but with the development of the times, the progress of society, globalization and free trade have gradually become the consensus of people, and the tax system has gradually transitioned to a more convenient territorial principle. As for the world of Vares, countries adopt different tax principles according to their own interests, with most of the countries exporting capital and services adopting the principle of personae, and most of the countries importing capital and services adopting the principle of territoriality.

The kingdom of Kolas is in the stage of economic take-off, the domestic industrial and agricultural construction is booming, towns, roads, bridges and other infrastructure are changing with each passing day, and there are entrepreneurial opportunities everywhere in the country, like a huge sponge hungry to absorb the capital (including monetary capital and magic capital) from Parnia, North Bay and Beacon Mountain, and at the same time are attracted to the Far East Dwarven miners and railroad workers in Icewind Dale, as well as steelmakers and builders from Kitland, It is a typical importer of capital and labor.

In such a situation, the government of Kolas is of course happy to adopt the principle of territorial taxation, with foreign investors and foreign workers paying as much as 30% of the fiscal revenue.

However, for Parnia, Beacon Hill and the North Sea Federation, which export capital, and Icewind Dale and Kitland, which export labor, if you apply the same territorial principle, you will inevitably lose a lot of taxes, so these five governments adopt the personal principle - whether you invest or work abroad, you must pay taxes at home when you make money.

This raises the question of the fact that those who invest or work in the Far East will be forced to bear a double tax burden. Entrepreneurs will inevitably be reluctant to pay double taxes, and in order to cut costs, they will try to lower the wages of workers; Workers are also unhappy with paying double taxes, and in order to make up for the loss of income, they demand higher wages. If a compromise cannot be reached, the employer will feel that it is not cost-effective to invest in the Far East and choose to withdraw his investment, and the labor will feel that it is not worth it to leave his hometown to work, and he will resign and return to his hometown.

The consequences of double taxation were already beginning to be seen in the Far East, and Roland did not dare to take it lightly, and invited five friendly countries to come to Krasbourg to discuss economic cooperation, one of the important issues was to avoid double taxation and reduce the burden on foreign investors and workers.

The parties entered into a tax-sharing agreement, which followed the principle of territoriality, and the central bank of the Far East settled the tax on a fiscal year basis, and the capital and labor exporting countries and importing countries shared the taxes equally in principle, so as to avoid double taxation.

In the short term, the tax-sharing agreement will inevitably cause certain losses to the fiscal revenue of various countries, but it is conducive to stimulating the cross-border flow of residents and capital of various countries, optimizing the allocation of resources, and in the long run, it will increase the fiscal revenue of various countries.

……

The third topic of the Far Eastern Economic Forum is the "Unified Currency".

If you only consider the coinage of precious metals such as gold and silver, this problem is actually very simple, it is nothing more than to change the pattern on the coinage, the value of the currency is still determined by the content of precious metals, and the amount of coinage issued by various countries mainly depends on the gold and silver reserves in the treasury, which is not much different from before the unified currency, and the only advantage is that cross-border transactions and settlements become more convenient, eliminating the exchange procedures between different coins.

However, this has become complicated since the kingdom of Kolas succeeded in issuing silver banknotes to replace silver coins, and the monetary system took its first steps towards the era of paper money.

The value of gold and silver coins is mainly determined by their own "coins". As long as gold and silver remain a scarf-strapped resource, there is no need to doubt the purchasing power of gold and silver coins.

However, "silver money" is different.

You say this thing is money, but what is its "currency"?

Isn't it just a little piece of paper!