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corwin90 -> RE: 3.5% tax rate with 64% tax? (7/24/2014 7:20:53 PM)
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Pre-Warp, I started with 4,000M and think my taxes were around 18% and gave growth of 8-9%. I emerged from Pre-Warp with 8,000M and was happy I'd stayed close to zero cash. Once I started building lots of ships and bases, I set my taxes to around 28% and saw my growth drop to 4%. Then, I felt the need to double my military to counter the pirate threat. I went seriously into the red and maxed out my taxes. I expected it would drop my growth to zero. Nope. It only dropped my growth from 4% to 3.5%.
Consider some numbers that I just made up: Home world population is 11,000M with a cap of 17,000M. Let's assume income is 200K. Consider two scenarios:
1. Taxes 28% gives 56K income and 4% growth rate. It takes 11 years to reach just below 17,000M.
2. Taxes 64% gives 128K income and 3.5% growth rate. It takes 13 years to reach just above 17,000M
At Max population, let's assume income of 300K. At 64% taxes, that is 192K income. Which method gives the most money? 28% taxes and 4% growth or 64% taxes and 3.5% growth?
At the end of 13 years, I have
1. 11 years at 28% of 200K is 11 x 0.28 x 200 = 11 x 56 = 616. Add to this 192 for two years. 616 + 192 + 192 = 1000
2. 13 years at 64% of 200K is 13 x 0.64 x 200 = 13 x 128 = 1664.
(Clearly, these numbers don't show the whole picture because the colony income would slowly grow from 200K to 300K over those 13 years. But I think the comparison still works.)
Just to rehash:
18% taxes gave 9% growth
28% taxes gave 4% growth
64% taxes gave 3.5% growth
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