?The office was in a state ofplete silence, with the only noise made being the mechanical clicks from the typewriter as Kant continued to type on the piece of paper. To his right of the typewriter, there was a stack of papers, facing down to the left, punched and ced on the file. To his left, there was an open book, which he repeatedly looked at and read before continuing on typing.


    n Fleck soon knocks on the door. After he gets Kant''s consent, he enters the room. On his hands, was a stack of nk paper that Kant had ordered him to bring. He sets them down on the table and turns around to walk out of the room. Just before he was able to leave, Kant calls for him.


    "Excuse me, minister Fleck, could you sit down for a while? Just wait a minute." Kant asks. n turns around and smiles at the king.


    "Of course, sir." He takes off his acorn-gray wool suit and ces it on the coat rack, next to Kant''s ck suit, before sitting down. Kant types for a good minute before he stops and takes out the paper before cing it on the file as well. He then flips it over to the right, returning to the first page of his writings. Seeing that he appeared to havepleted what he was typing, n Fleck asks a question.


    "What is it that you want to speak to me about, sir?"


    "Well, it is about a new method of taxation regarding Industrial District 1. Instead of taxing the businesses and factories the normal way, which is to ask either money or products from them, I would like to introduce a new way to tax them."


    "Ok, sir. I am all ears," n replied as he sat straighter in his chair.


    "You see, instead of implementing ie taxes, customs duties, poll taxes, or excise taxes and such, I suggest we implement only and value tax. Under the neww, the tax owed by an individual or entity is based on the rental value of thend they own or use.


    To calcte thend value tax owed, the first step is to determine the rental value of thend by taking into ount factors such as location, ess to transportation, the quality of thend, and so on. Considering that Industrial District 1 has be a more developednd, it will be considered more valuable.


    Once the value of thend has been determined, thend value tax rate is applied. Now, we want the rate to a level that is sufficient to collect the full economic rent of thend, but not so high that it discourages investment because it is the point of Industrial District 1.


    The revaluation will take ce every 6 months for 2 times a year. The months are Bellum in the first quarter and Folina in the third quarter."


    "I see, sir. Would you mind exining why you would only impose and value tax?"


    "Land Taxes were observed to be the most efficient forms of taxation as they showed the least amount of distortions in the economy. At least ording to the 14 books I found regarding the subject.


    pαndα`noν?1--сoМ Another advantage would be that it incentivizes the efficient use ofnd. We have limited space on this ind where the city sits. So we need to make sure that all the space is used adequately and efficiently." Kant exined as n Fleck carefully listens. Once Kant finishes, he leans back on his chair.


    "So, Minister Fleck, what do you think?" Kant questions the minister, wanting his opinion.


    "Hm... I am not sure. I have this question bugging my mind. Will this be the ONLY tax you would want to implement, strictly to Industrial District 1?"


    "Well no. There will be other taxes, but they will be drastically reduced for businesses to settle their factories in the area. While it might start in Industrial District 1, I hope to expand it to other parts of the city and kingdom."


    "Is there a specific reason for that?"


    "Well, ording to this schr named Kelly Geroge..." he opens his drawer and picks up a book residing in it. He flips a few pages and started reading the text out loud for n.


    "...by allowing cities that specialize in producing a product to sell it off to a city in need, it can focus on doing what it can do best..." Kant closes the book.


    "By reducing these taxes, I can import the materials I need to the city, which can be shipped off to the factories, where they will turn it into something useful. For example, they turn cotton into a shirt as cheaply as possible.


    This product can then be exported andpete in other cities, even if there are some taxes involved, and will allow governments to acquire more funds overall. So... what do you think?"


    "You are asking for my opinion, sir?"


    "Yes, I am."


    "I see. Well, sir, I think you should keep the current taxes mostly intact. Maybe decrease a little bit, say by 10% of the current tax? Say, if the tax is 50%, it will drop to 45%. It will still be cheaper to import it, but there will be a safeguard in case things go bad."


    "I see. Thank you for the input."


    "You are wee, sir. Say, what is the tax rate that you want to apply?"<novelsnext></novelsnext>


    Currently, I am thinking of applying a 30% rate, which isparatively better than what everyone else is offering," Kant suggested.


    "30%... Excuse me, sir, I have a suggestion. May I speak?" n questioned.


    "Yes. Go on."


    "Alright. Instead of going with 30%, I rmend you go with 65%. Currently, the lowest on any other continent is about 75% in terms ofnd taxes. ording to the way you set up the tax, and the buildings that will be present there, it will still be cheaper that will still attract the merchants you are looking for.


    Once the merchants have settled there, you can decrease the amount of tax. As merchants are attracted andnd develops its value increase. Since the value increase, you can decrease the tax rate and still make more. This will also allow you topete with other kingdoms that would try to mimic your policy."


    "Hmm... I guess that will work. Thank you for the idea."


    "You are wee, sir. Is that everything you wanted to discuss?"


    "Actually no, there is one more thing I have been meaning I have been nning."


    "What is it?"


    "It is about expanding the government staff members and adding new departments to handle certain tasks."


    "Oh... is that so? Well sir, is there any particr department you would want to expand?"


    "I am thinking of introducing a formal department specialized in and responsible for enforcing our taxws and collecting taxes. Considering that specialization and division ofbor appear to have increased efficiency, I think it would also be best to try applying it to the government structure," Kant suggested. n''s face tried to hold in his smile.


    "I see where you are getting at. Yes, that is a very good idea, sir. If we do specialize, we could increase the amount of taxes collected, and it will make our job of enforcing the new taxation method a lot easier.


    Say, sir. Could you mind going into further detail on how this department works? I need the information to be able to hire the correct people for the job," n asks, a little excited.


    "Alright then. The new department is currently named the Internal Revenue Service Department, or I.R.S. for short. They are meant to do a few things. The first is to collect taxes from individuals and businesses. The second is to enforce the taxws by investigating cases of tax evasion, fraud, and other vitions.


    The third and final responsibility of the internal revenue service department is to assist taxpayers who might have some confusion regarding the concerns of their taxes and to resolve any disputes with the agency.


    The agency will have ountants to ensure that taxpayers areplying with taxws. It will also have interpreters, or what I like to call tax specialists, to interpret and enforce taxws.


    There will need to be some attorneys for the agency to fight in court, and it will also need administrative staff members to provide support services to the agency. For example, human resources, budgeting, public rtions, and such.


    Finally, there will be what I call agents. These people will be the ones investigating any potential vition of the taxw implemented." Kant then grabs the file on the desk and passes it on to n.


    "If you want more details, I suggest you read that charter. I worked for a few weeks on perfecting it."


    "I will sir, thank you."


    "When do you think you will be able to implement the new agency?" Kant asks.


    "It will take a while, but I can guarantee you that I will have the department set up and running smoothly in about 2 to 3 weeks?"


    "That is good. Well, that is all I had to discuss with you. You are free to leave now."


    "Alright, sir. Again, thank you." n replies. He gets up from his chair, bows down, and leaves the room.