When to change taxation?

[lucaluca]

I'm in 1870, the scramble for Africa is almost over and I got lots of it. To sustain my increasingly huge army though I need to do the following:

- decrease army and navy stockpiles to 25%. Is it correct? Can I go down to 0 or should I go to something higher like 50%? I'm just wondering if decreasing the stockpiles will bankrupt all the canned food factories (they all went bankrupt anyways...)

- decrease adm spending to 50%. I have already 100% adm efficiency, do I still need to keep this slider at 100%?

- decrease education spending to 50% once lteracy is 90% or more

- taxes: i have 33% actual tax rate on the poor, 23% on the middle, and 1% on the rich, but in war I increased the rich to 33% because I saw 1/3 of them were spending their money on luxury needs and did not build anything, arguably because of a lack of craftsmen. They start building en mass only when I promote craftsmen with NF or when I close losing factories. Artisans don't seem very willing to become craftsmen for some reason.

When should I start taxing the rich and not taxing the poor?

 

[GC13]

You can only take the navy down to 30% in HoD. I usually have my army down at 20-30% in peace time, since that's plenty for rebels. War will get it brought up at least to 50%, and the harder the war I expect the closer to 100% I take it.

100% administrative spending is almost certainly too high. 50% should be fine for most nation's needs, if I'm remembering right. Dropping education spending is fine, especially if your literacy is already so high. But really, if you're in a temporary financial crisis it's no big deal to drop it until your income looks better.

If you don't need your capitalists to invest in anything, tax the heck out of them! In war time I'll raise taxes on the poor, but normally I like to keep their taxes lower than the rest (unless I'm using my capis to build a bunch of railroads for me, in which case the rich tax is low) so that they can take that money and put it back into the economy by buying factory goods.

 

[Faulty]

Capis are useless, tax rich at the max and build your own factories with state capitalism. I keep poor and middle taxes as low as possible to keep their militancy lower.

 

[lucaluca]

Capis are useless, tax rich at the max and build your own factories with state capitalism. I keep poor and middle taxes as low as possible to keep their militancy lower.

I have Interventionism I cannot build factories

 

[masteriw]

I like capis, they have bonuses that make factories that looked useless under state capitalism quite profitable

 

[El Jojo]

How low is your army stockpile in peace time depends on your situation, are you in a situation where a powerful opponent will declare war on you ? If yes, then keeping it at 50% is safer. Otherwise lowering to 10% is okay, in case of rebels I put it back to 75% until they're gone (well then it depends on how often you get rebels...)

Adm spending can be lowered, I usually put it at 55% to have some new bureaucrats, higher if I want to convert colonies to states.
Same for education, leaving it around 65% ensure clergy growth follows pop growth, higher if I just conquered a few big states (like after a great war) and I need to bring clergy to at least 2% (or even 4%) in these states (the AI is sometimes very poor at keeping clergy % up).

The rich are not that fragile, at least once again in my experience I can tax them around 20% actual and they still have plenty of money to invest everywhere needed and yes they won't invest in state where factories are already without enough workers, so if you have empty factories and a railroaded country you can tax the rich. From 1900 they do consume a lot of high end goods though (cars, planes etc) so beware of not killing that market.

In war, if needed I have no problems taxing the rich, but getting into debt is not that bad, money sitting in your national banl is useless to the economy, might as well put it back in the system.

 

[GC13]

I like capis, they have bonuses that make factories that looked useless under state capitalism quite profitable

Um, what bonuses would those be, that are active in Interventionism and not State Capitalism?

 

[1anrs]

Um, what bonuses would those be, that are active in Interventionism and not State Capitalism?

Trouble is though that most Conservative parties are interventionist so it is rather hard not to be reliant on capitalists under those circumstances.

 

[Orko80]

I use the can afford luxury good's as a guide line how to tax the rich and middle class. When I get a good Industry base, I want most capitalist not being able to afford luxury need's. I also run Interventionist party. And at the same time i try to get more low and middle class beeing able to afford luxury good's.
But this is also a problem of supply of those good's. More often they can't get the goods due to not enough produced within your market. So it's important that your Industrial base is composed of some of these good's.