What are the consequences of Taxes and Tariffs?

Matrix Games Forums

Forums Register Login Photo Gallery Member List Search Calendars FAQ

My Profile Inbox Address Book My Subscription My Forums Log Out

What are the consequences of Taxes and Tariffs?

View related threads: (in this forum | in all forums)

Logged in as: Guest

Users viewing this topic: none

Printable Version

All Forums >> [New Releases from Matrix Games] >> Shadow Empire >> What are the consequences of Taxes and Tariffs?

Page: [1]

Message

<< Older Topic Newer Topic >>

What are the consequences of Taxes and Tariffs? - 8/8/2020 6:40:02 AM

HansLemurson

Posts: 134
Joined: 7/28/2020
Status: offline

Money is important! I like money. It can get you many things. It can even buy happiness (with a high enough bribery skill).

But how to get it? Aside from selling resources on the Market, the most reliable source of revenue I've found is the Income Tax. My Income Tax is at 40% and although that seems pretty high to me, I haven't noticed it resulting in any problems besides my Interior minister refusing to generate any more "Increase Income Tax" cards. Is there any hidden downside to high taxes that I'm missing? Am I going to accidentally drain my Private Economy dry?

What about Sales Taxes? Going up in increments of 25% seems like it could quickly result in extremely high tax rates. But at the same time, they seem to generate precisely $0 most of the time. What exactly do they DO?

And what about Tariffs? What do they even tax? I've barely had any international trade, and it's odd to see an entire Stratagems category devoted to something so seemingly insignificant. Does levying tariffs accomplish anything besides your neighbors asking you to stop?

Post #: 1

RE: What are the consequences of Taxes and Tariffs? - 8/8/2020 1:26:52 PM

Destragon

Posts: 475
Joined: 6/8/2020
Status: offline

quote:

ORIGINAL: HansLemurson

Is there any hidden downside to high taxes that I'm missing? Am I going to accidentally drain my Private Economy dry?

If there were no downsides, there wouldn't be a reason for the "decrease taxes" stratagems to exist, so yeah.
The manual says
"However, keep in mind that the more you Tax your Zones the more you�ll stifle the development of the Private Economy."
Income tax also seems to directly lower the speed at which pop happiness rises or something like that.
Sales tax makes it harder for civilians to buy resources.
Not really sure about the actual consequences of tarifs. I guess they probably increase the price of resources, as well as probably making it harder to buy resources for civilians, too? The whole "hidden traders" stuff in the game is a bit obfuscated.

< Message edited by Destragon -- 8/8/2020 8:07:21 PM >

(in reply to HansLemurson)

Post #: 2

RE: What are the consequences of Taxes and Tariffs? - 8/8/2020 1:30:07 PM

Soar_Slitherine

Posts: 426
Joined: 6/7/2020
Status: offline

Sales taxes come from your population buying goods from the traders, usually for the purpose of manufacturing luxury goods to boost their happiness. If you're getting nothing from your sales taxes, that indicates your population is too poor to afford luxury goods, which may be bad if you're having problems maintaining population happiness. Similarly, income taxes can indirectly reduce population happiness by reducing their ability to buy luxury goods, in addition to slowing down the development of your private economy (which may or may not be bad depending on how much access you have to population - which the private sector employs wastefully compared to the public sector, especially if you don't have any regime feats from the Commerce tree - relative to other resource constraints on your economic development).

Export tariffs have been useful in my ongoing game. Since it's an underpopulated planet consisting of mostly unpopulated wilderness instead of minor regimes, the market had low capability to supply resources, and my neighbour hadn't had access to easy salvaging like I did so their market prices were heavily inflated (their metal price peaked at 77 credits/unit from what I saw). With a trade agreement active, that resulted in trade every turn and big, fat profits from my export tariffs. Alternatively I could've taken advantage by invading, but there is a mountain chain in the way and the other AI majors were in a similar situation at the time, so I decided another one a bit more distance away was an easier target.

(in reply to HansLemurson)

Post #: 3

RE: What are the consequences of Taxes and Tariffs? - 8/10/2020 9:52:41 PM

zgrssd

Posts: 3385
Joined: 6/9/2020
Status: offline

quote:

ORIGINAL: HansLemurson

Money is important! I like money. It can get you many things. It can even buy happiness (with a high enough bribery skill).

But how to get it? Aside from selling resources on the Market, the most reliable source of revenue I've found is the Income Tax. My Income Tax is at 40% and although that seems pretty high to me, I haven't noticed it resulting in any problems besides my Interior minister refusing to generate any more "Increase Income Tax" cards. Is there any hidden downside to high taxes that I'm missing? Am I going to accidentally drain my Private Economy dry?

What about Sales Taxes? Going up in increments of 25% seems like it could quickly result in extremely high tax rates. But at the same time, they seem to generate precisely $0 most of the time. What exactly do they DO?

And what about Tariffs? What do they even tax? I've barely had any international trade, and it's odd to see an entire Stratagems category devoted to something so seemingly insignificant. Does levying tariffs accomplish anything besides your neighbors asking you to stop?

Income (and Sales) Taxes take money out of the Private Economy. My usual aim is 50% Income, 25% Sales Tax.
Income Tax applies to when they sell Goods to Traders.
Sales Tax applies when they buy goods from Traders (wich is mostly "Luxury goods and services").
Considering my Worker Salary is put into the Private Economy and Privat Salary is a Credit Neutral thing, I feel a serious sales tax is only fair.
I even use it to actively limit the Private Economy. They would drag my QOL and thus Civilsiation score into the high heavens, if I let them!

Tarriffs are harder to explain:
- In every Regimes Zones, there is a "Trade House"
- all Trading is done with said trade house
- Trade houses can trade with each other. Either to get rid of excess or to get new stuff to sell you. That trade is what tarrifs affect.
- note that Traders also have a anti-inflation mechanic, so they will stock away credits to maintain a stable currency

< Message edited by zgrssd -- 8/10/2020 9:54:15 PM >

(in reply to HansLemurson)

Post #: 4

RE: What are the consequences of Taxes and Tariffs? - 8/21/2020 7:47:18 AM

Poliorcetes

Posts: 140
Joined: 11/5/2004
Status: offline

Income tax is the key one usually. Get that to 30% and life is good. Unclear how often sales tax helps, though I am told too much is bad somehow.
Have yet to find any use for tariffs, but presably somebody is using it
I usually zero out that area once I have good income tax, just end up with endless useless cards otherwise. Same with prospecting when your borders are not expanding.

(in reply to zgrssd)

Post #: 5