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InnocentIII

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Basically there is income from your own (very limited) personal holdings, a Church Tax from Bishopric holdings, a City tax from Cities. Taxing vassals is not the main way to make cash, as the vassal tax from vassal holdings typically starts at 0%. If you keep the wrong kind of holding (e.g. cities for their uber wealth), you take a hit (-25% in the Demo, -50% on release), but it could still be worth keeping until you hit the Demesne limit. You'll want to keep the Bishops happy, since if they like the Pope more than they like you, then their taxes will go to the Pope, and you get 0% regardless of the Church tax rate.

Money matters quite a bit, but where money it comes from is not the important thing in the game in the sense of trading exotic goods etc.
 

iniudan

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Basically there is income from your own (very limited) personal holdings, a Church Tax from Bishopric holdings, a City tax from Cities. Taxing vassals is not the main way to make cash, as the vassal tax from vassal holdings typically starts at 0%. If you keep the wrong kind of holding (e.g. cities for their uber wealth), you take a hit (-25% in the Demo, -50% on release), but it could still be worth keeping until you hit the Demesne limit. You'll want to keep the Bishops happy, since if they like the Pope more than they like you, then their taxes will go to the Pope, and you get 0% regardless of the Church tax rate.

Money matters quite a bit, but where money it comes from is not the important thing in the game in the sense of trading exotic goods etc.

Actually on long term it is not worth to keep the wrong type of holding, for that hit is complete lost, while if you have a vassal he keep the portion that was not taxed from him and will reinvest part of that money on the settlement, if your call to war don't empty his coffer.

And only castle typically start at 0% taxation (but they have greater feudal duty to their lord, in game term it basically mean a greater % of their levy), city cannot go down to 0%, while church typically don't start at 0% (but their opinion of you versus the pope if Catholic, decide if their taxes go to you or him)
 
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Basically there is income from your own (very limited) personal holdings, a Church Tax from Bishopric holdings, a City tax from Cities. Taxing vassals is not the main way to make cash, as the vassal tax from vassal holdings typically starts at 0%. If you keep the wrong kind of holding (e.g. cities for their uber wealth), you take a hit (-25% in the Demo, -50% on release), but it could still be worth keeping until you hit the Demesne limit. You'll want to keep the Bishops happy, since if they like the Pope more than they like you, then their taxes will go to the Pope, and you get 0% regardless of the Church tax rate.

Money matters quite a bit, but where money it comes from is not the important thing in the game in the sense of trading exotic goods etc.
Are they still worth keeping with -50% in full game?
 

iniudan

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Are they still worth keeping with -50% in full game?

If you want more gold yes I guess, but at start of the game your wasting like 6 gold to the penalty (base income of city been 12 gold without any improvement), while if you had a vassal you might only get about 2 gold from tax, which leave 10 gold in his pocket to pay for his own expense, which include improving his fief (has to increase income, levy size and defensiveness) and to pay for the levy you might be calling.

So in the end you are gaining only about 48 more gold a year in your coffer, over the the 24 you would gain from taxing the vassal hold the city, but you have to pay yourself for the troop levied and to improve the fief, while a mayor could make about 120 gold.