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!
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!