The tax rate is the amount at which you tax your citizen’s income on a daily basis. Suppose you have a citizen that earns $100 a day and you have a tax rate set at 25%. You will collect $25 from this citizen per day. If you have 50 citizens in your nation then you will collect ($25 x 50 =) $1250 from your population in income taxes per day. Lowering your tax rate lowers the percentage of taxes each of your citizen’s pay on their income but increases your population happiness. The happier your population is the more money they will make, so sometimes lower tax rates will earn you more money than would a higher tax rate.

<cough>laffer sucks</cough>

The Laffer Curve isn't always true in this game. It really just depends on how you setup and run your nation.

Gone

*pokes stured and points him in the direction of the PM box*

Iwould think everyone knows that...

Er, it would vary nation-by-nation depending on things like trade agreements, happiness, and infrastructure. There's no one-size-fits-all best tax rate (although some options are much more likely), but it's very easy to find your own.

Actually, there is one. For all nations, as far as I've seen.

I think think you guys are being a little silly about a magic numbre. Every day I check my taxes against happiness and returns. I even go so far as to chart and graph to to ensure I have the best tax return.

It actually changes each day - sure it stays within a certain range - but it changes.

Now I don't suggest every nation is the same as mine, but I know mine changes, so others must as well.

Help! I just lost $5 in per-individual tax overnight! :o

Has anyone noticed that you could just keep it at 10% and then when you collect taxes put it at 28%, collect, then put it back at 10 every day?

You can do that, but if you collect at 28% it'll have their income at 28%, cancelling out any affect of 10% hapiness. This "bug" has been reported and refuted before, if I am not mistaken...

PM me man!!! :D

Yo tambien, por favor.
Me as well, please.

Actually, tambien is also.[B] Literaly.

What's the difference between also and as well? <huuuuh>

In this case "tambien" would be "too". It does mean "too" and "as well", but the better fit is "too".




Not that it matters. :))

But in case you haven't noticed, there is one tax rate that for every nation is the best of them all and, once again, it is the same for every nation and probably common knowledge by now. Is there anything yall are gonna do about that? Change...something...that'll make it due to other factors what the best tax rate is for a nation so that it could change every day or with some other change.

I agree that there should be variation between the best tax rate of different countries.

i do that all the time

Sorry, I actually now realize that that doesn't work because it makes it as if you had it at 28% the whole time, so unless you want a 10% tax rate all the time for looks (which other people don't see anyways, I don't think) it's pointless.

P.S. 28% isn't the best tax rate :P

i think some more variation in tax rates would be welcome, or is there a specific reason for limiting them to 28%?

I (think I) have found the best tax rate (not telling you <<% ) because if you put it at -1% of a certain rate, they'll be the happiest and make more money; but then take the rate +1% of that rate, and they'll make less and so would you.

So, you may be collecting less taxes with the first rate, but your people make more money, so you get more money. :J

ex. Say the rate I'm talking about is 10% (although it's not :P , and it'll be expressed by 'x') and the second rate is 9% (expressed by 'y')

Say your pop. :J is at 11. Say the $$$ made by one person a day with 'x' is 6.00, you get $0.60 a day from them.

Say your pop. :J is at 11. Now say you lower your rate to 'y', now your :J goes up because now it says 'Your people are free from high taxes and tend to earn more money as a result' as opposed to 'x''s explaination 'Your people pay moderatly high taxes and tend to earn less money as a relsult'

Because you hit that hidden gem ('y''s value) your pop. :J goes from 11( :J )-->13 ( :)) ) and instead of your people earning $6.00 a day, now they make $7.00 a day, but you only collect 'y''s value of 9% ( :( ) compared to 'x''s value of 10% ( :D ). But your people now make +$1 more.

Even though you collect a smaller percentage with 'y', you collect from a bigger pot.

In the end, here's how it turns out:

'x''s value=$6.00x.10=$0.60 from a person a day.
'y''s value=$7.00 (your :J went up and your people make more money)x.09=$0.63 from a person a day.

See? smaller percentage; bigger amount. :D

Not a big change, but times that $0.03 by, like, 120=+$3.60 a day.

Now, the numbers are much, much bigger in the game (like people are making $40.00+, not $6.00, so a much larger revenue will be collected) and these numbers were just an example.

Get it? Alot of math, I know. :D

Far too many words to express a very simple concept: use the rate that maximizes income taxes per civilian.

And the assumption in your first paragraph is wrong - there are multiple maxima and minima, so you need to check each likely rate individually. (Even if you find that (x+1)% gives less taxes than x%, (x+2)% could still give more than either of them.) I recommend checking each rate from 20 to 28%.

It's always been between 19 and 28. Check all of those, and choose the one that has the best taxes paid per citizen. After collecting taxes, move it down to 10% o make them happy, and before collecting next time, move it up to the levelt hat worked for you before. It doesn't change.

Most nations, including me, find 25% to be the most successful, though it sometimes differs.

I went to like 10 different nations and they all have 23% as the best.

Tell me as many stories as you can of something different.

But I was suggesting that maybe the best tax rate could be anywhere between 10 and 28% based on some factors.

I, like Harrisy, have found 25% to be the best tax rate at the moment.

As far as I can see the only effect of happiness is to increase citizens' income by $2.00 each. And income levels only count at the time of tax collection. So temporarily increasing happiness between collections won't bring you any benefit, but feel free to do it anyway if you find it amusing.

I have seen 2 different optimal rates for my country at different times, and the change in optimal tax rate was due to picking up 2 in-team trades (+2 happiness).

And like H-bar said, there really is no point to change the tax rate in between, unless you just want to see a higher happiness number -- for, uh, 'kicks' and giggles

The best rate for me is 20%. I previously had it at 15% but I found that having my happiness take one hit is okay and I still make more, anything higher and I make less.

[EDIT: 25% actually makes a little more, but it's trivial and I like my people happy like this: :)) ]

[EDIT 2: My people can live one day with this: :J as I need to buy my first tech to get them up in happiness.]

Okay, I guess I was wrong. But still I think that it needs to broader.

ha! its been removed (my description of the best tax rate..go here to get it http://s15.invisionfree.com/Cyber_Nations/...showtopic=10865

You should once a week go through every tax rate and find the golden number for highest income via taxes. Right now for me it's 25%. It helps to make a table:

PERCENT - HAP # - INCOME

For every happiness level, how much more do your people make?

$2.00

Wow thats... nothing...

Well it is 2 bucks per individual, so if you have 5000 taxable citizens, you'd get an extra 10,000 per level of happiness...

Yeah. I have 258 people and that means +$516.00 every happiness level. That's a nice bonus. :J

EDIT: oh, wait, but with taxes that's only about a +$82.56...but that's still pretty nice when it's easy to raise your level. :J

Lol my nation was in a worse way that the average's persons because I thought to tax at 28% ^^ giving me like 2 bucks. My friend starts one and taxes at 15%, makes over 800 bux with less nublets.

I was like MAH!

25% is the most bang for your buck, most likely.