Registration Board Effect

## Overview

(disclaimer - This is only applicable in the world of Iaddithis, not real world politics)

The "Registration Board Effect" or sometimes referred to as the "Falt effect" is an economic theory that states the existence of taxation systems on corporations alongside the existence of legislation for said corporations to be required to register themselves, results in an economy forming without further government influence or interference being required. This theory originated in the Kingdom of Faltírvars, a nation known for having a thorough taxation system, after economists noticed a major difference between Faltírvars markets, and those in other nations, that being that in Faltírvars companies were no longer constrained to just one shop, and without any interference from the state, often would expand operations as much as possible, or make sub-companies to fill other duties.

## Main Concept

The theory behind the Registration Board Effect is one primarily focusing on the effects of taxation and business registration on shops. The theory states that, when a shop owner is forced to pay taxes by stating and archiving how much they have earned, alongside registering their shop as an official business, the shop owner is unintentionally encouraged to expand said "business" under the idea that what would be in most markets a basic shop stall one may restock every once in a while, is now a corporation that is both registered legally, and taxed, making the owner feel like they have to take it seriously, that it is no longer a place to throw away unwanted goods, but a company managing supply, demand, and tax documents. This means the shop owner will likely wish to expand operations elsewhere, or further operations in the region they sell in, conduct deals and contracts, and treat themselves more seriously than a normal shop would, often leading to the formation of a de facto national economy, alongside the increase of the state's purchasing power.

## Registration Board Effect in Action

### Faltírvars

Faltírvars, is one of the few nations to be able to claim they have a domestic market that spans across its Kingdom, without foreign shops, and without a centralized market, this is mainly attributed to the "registration board effect", and can be seen with most shops being registered companies, taxes being enforced, and brands becoming recognizable with brand loyalty being a factor in the growth of a business. Faltírvars is also where the first concept of the Registration Board Effect was documented, being the first state in Iaddithis to implement corporate taxes via the Corporate Jurisdiction Bill and its many amendments.

## Criticism

The Registration Board Effect while effective, is not liked by many residing outside of Faltírvars, with the infamous Camilla Cornaro court case being by far the clearest example of this. This is primarily due to the fact the businesses once established often resent taxation, however others such as those in Faltírvars feel it is vital to keeping the economy and state functioning, and allowing for the state to at any point incentivize sectors of the economy such as literature if need be.