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Thread: how do tax and admin efficiency really work?

  1. #1

    how do tax and admin efficiency really work?

    I understand the idea that higher TE means more of the tax you attempt to collect gets collected (and similar for AE), but my question is what are their impacts in more general terms.

    For example, you have TE of 50% and tax a group at 100%, thus you are effectively taking 50%*100% or 50% of their income, right? So if your TE goes up to 100% you can get the same amount of money by taxing them at 50%. But other than moving the sliders, what's the difference? Do the pops 'know' their being taxed at a higher rate and that you're just lousy at collecting it, increasing MIL? Or does the extra tax get 'lost' somehow? IOW, what is the benefit of getting a higher TE, assuming you're tax rates aren't anywhere near 100%?

    Same goes for AE. Unless your tarriffs are up near 100% I don't see the point of trying to raise your AE when you can just compensate for a low AE by raising tarriffs higher. Unless the 'lost' income is paid by your pops/factories?

    Any help greatly appreciated!

  2. #2
    TE's basically exactly as you describe. The difference is, at 50% TE you cannot ever effectively tax more than 50%. At 100% TE, you cannot effectively tax more than 100%.

    Admin eff is different, in that it changes the expense of everything else.
    For every subtle and complicated question, there is a simple and straightforward answer, which is wrong.

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  3. #3
    Lt. General Thanik's Avatar

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    Quote Originally Posted by srg13 View Post
    Same goes for AE. Unless your tarriffs are up near 100% I don't see the point of trying to raise your AE when you can just compensate for a low AE by raising tarriffs higher. Unless the 'lost' income is paid by your pops/factories?
    AE is sometimes important factor -> determines how social reforms are effective, and sometimes higher factor determines which pop can demote/promote...
    And anyway raising/lower tariff have many disadvantages to your economy...


    And about TE -> you can see tooltip too how many cash your country get from each pop type.
    And I think population care about effective taxation not "official tax". But not directly but how many they can buy goods with their income.
    For example pop worked in precious mine taxed with 50% can be happier ,than farmer taxed by 10% or even 0% if he work in crap RGO...
    Last edited by Thanik; 19-08-2012 at 18:59.
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  4. #4
    Quote Originally Posted by Naselus View Post
    Admin eff is different, in that it changes the expense of everything else.
    Thanks very much. Apart from tarriffs, the tooltip refers to social reforms and crime fighting. Is there anything else that's affected by AE?

  5. #5
    Quote Originally Posted by Thanik View Post
    AE is sometimes important factor -> determines how social reforms are effective, and sometimes higher factor determines which pop can demote/promote...
    And promote/demote, thank you.

  6. #6
    Quote Originally Posted by srg13 View Post
    Thanks very much. Apart from tarriffs, the tooltip refers to social reforms and crime fighting. Is there anything else that's affected by AE?
    Your total baseline spending, ie. what it would cost at 100% admin efficiency, is then multiplied by 2 - your admin efficiency. So 100 basline spending with 10% adminefficiency is: 100*(2-.10)
    =100*(1.90)=190.

    Lower admin efficiency increases costs of everything, like Nassulus said.

  7. #7
    Quote Originally Posted by srg13 View Post
    And promote/demote, thank you.
    Promo/demo is doubled by having 100% admin eff, and cost of goverment expenditure is halved.
    For every subtle and complicated question, there is a simple and straightforward answer, which is wrong.

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  8. #8
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    But does 100% admin eff works in whole country or per state? I mean there is also admin efficiency in states.

  9. #9
    Quote Originally Posted by Arthasus View Post
    But does 100% admin eff works in whole country or per state? I mean there is also admin efficiency in states.
    Admin efficiency in states contributes to the effectiveness of crime fighting. On the other hand nation-wide Admin efficiency determines the spending multiplier and the efficiency of social reforms.

    I think the demote/promote efficiency is nation-wide but I am not sure. Tarrifs is also nation-wide.

  10. #10
    Quote Originally Posted by General Pauper View Post
    Your total baseline spending, ie. what it would cost at 100% admin efficiency, is then multiplied by 2 - your admin efficiency. So 100 basline spending with 10% adminefficiency is: 100*(2-.10)
    =100*(1.90)=190.

    Lower admin efficiency increases costs of everything, like Nassulus said.
    Thanks. What is meant by 'everything'? Just everything on the right side of your budget window basically, or does it include other things as well?

  11. #11
    Quote Originally Posted by srg13 View Post
    Thanks. What is meant by 'everything'? Just everything on the right side of your budget window basically, or does it include other things as well?
    Everything on the right side of the budget window.

  12. #12
    OK I get it now. Thanks very much!

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