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nah1986 Game profile

Member
56

Jul 4th 2023, 7:43:42

Hello
Is the best tax rate usually 26,27,28,29,30,31,32,33,34,35,36,37,38,39 or 40 ? How do you decide on your tax rate?

Gerdler Game profile

Forum Moderator
5082

Jul 4th 2023, 14:12:29

tax income = tax rate * pop * pci. And because tax rate is included in the PCI and Pop we can either analytically or numerically solve for the maximal tax income.

Keep in mind Tax rate is a percentage so 30% tax is written as 0.30

Pop is propotional to (1-.95*Tax)
PCI is proportional to (1-Tax)

So tax income is proportional to (1-.95*Tax)*(1-Tax)*Tax.

Because its impossible to set decimals in the tax rate we can easily test the tax rates one by one to find the maximum.
The result will be that 34% yeilds the maximal, just marginally more than 35%.

This is independent of strategy, food price, tech levels or anything.
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The problem tho is that population eats food, and because a higher tax rate lowers population it reduces food consumption.

Food consumption from population is proportional to population. So here it gets messy. Because tax income varies with govt, strategy and res/bus tech levels and because food cost from population varies with residential tech, govt and food prices we cant say for sure what is best in every given situation.

Unless you wanna do the math yourself or set it up in a spreadsheet and test it numerically for different situations you will have to trust me that 35% is usually the answer, and that while situations exist when 36%, 37% or 38% may be the ideal tax rate they are few and far between and the benefit of using the ideal tax rate instead of just 35% in these rare scenarios is insignificant.

I'm not sure theres a scenario that would allow 34% to be better than 35%. I guess if you played a theo MBR with no military tech and you somehow had to take turns and couldnt sell on the public market but you had too much food for the rest of the round so that you would have to sell it on private market for $17?
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Tl;Dr Keep it at 35%

nah1986 Game profile

Member
56

Jul 5th 2023, 0:47:49

So as commie industrialist and democratic/republican casher you would to know the cheapest price of food.

DerrickICN Game profile

Member
EE Patron
6341

Jul 5th 2023, 10:02:29

Not necessarily. While food price matters a little, it would only push the ideal tax rate closer to 35% from 34%. The short answer is that 35% is always ideal.

KoHeartsGPA Game profile

Member
EE Patron
29,741

Jul 27th 2023, 19:28:43

Tax rate should always be 0% ..... Cuz Jayr
Mess with me you better kill me, or I'll just take your pride & joy and jack it up
(•_•)
http://www.youtube.com/watch?v=W6VRMGTwU4I
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S.F. Giants 2010, 2012, 2014 World Series Champions, fluff YEAH!

THE BACON

Member
26

Jul 28th 2023, 11:56:46

Originally posted by KoHeartsGPA:
Tax rate should always be 0% ..... Cuz Jayr

#neverforget