Tax and Cash Reserves 1.02

[unmerged(11049)]

After discussion at Russian forum we came to some conclusions concerning taxes and incomes of POPs in Victoria.

As is known taxes goes from three classes of POPs. Poor, Middle and Rich. For definition of the tax each class has a tax base. It consist of two parts:
The POPs income and Export income.

POPs income is a fixed sum from each person of POP. It is
2.5*size/100000 for poor POP (soldier, craftsman, farmer)
5*size/100000 for middle and
10*size/100000 for rich.

POPs income is present at every POP without exception. Money drops directly from heavens.

For example:
if you have a POP of 20000 farmers, it have POP income = 20000*2.5/100000 = 0.5
if you have a POP of 80000 clercks, it have POP income = 80000*5/100000 = 4
if you have a ...

The second part of income of peoples and tax is Export income.
It is the sum of the receipt from selling the goods in the world market.
It shares between classes in the following proportion:
poor - 40%
middle - 30%
rich - 30%

NB: Proportion does not depend on number of POPs and quantity of people in it, except 0.

Tax base is a sum of POP income and Export income.

Tax from class = Tax base of class * Class tax effectiveness * Tax effectiveness * Tax percentage

 

[OriginalRafiki]

Interesting!

The second part of income of peoples and tax is Export income.
It is the sum of the receipt from selling the goods in the world market.
It shares between classes in the following proportion:
poor - 40%
middle - 30%
rich - 30%

NB: Proportion does not depend on number of POPs and quantity of people in it, except 0.

Does this mean that if you have very few poor POPs, they will still receive 40% of export income, making each of them quite rich?

Rafiki

 

[Soulitaire]

... which in turn might explain why they cease to make money consistently once your economy starts growing.

 

[Derek Pullem]

Interesting!

Does this mean that if you have very few poor POPs, they will still receive 40% of export income, making each of them quite rich?

Rafiki

Yes. Which is another reason why the increasing number of Clerks and Craftsmen get poorer and poorer

 

[OriginalRafiki]

Yes. Which is another reason why the increasing number of Clerks and Craftsmen get poorer and poorer

Uhm.... that doesn't sound right*...... :wacko:

Rafiki

*"right", as in "how it should be", not as in "how it is"

 

[unmerged(23865)]

Then if there are no farmers & laborers & soldiers, 40% of export income go to hell ?

 

[Derek Pullem]

Uhm.... that doesn't sound right*...... :wacko:

Rafiki

*"right", as in "how it should be", not as in "how it is"

Well its a major part of the game's economic model so don't bank on it getting changed too quickly. Small POPs get the same cash as big POPs too so if you have some big POPs and lots of small ones e.g. immigrants you want assimilation and pop merging to happen or your immigrants will be the richest sector of your economy.

 

[OriginalRafiki]

Well, likelihood of things getting changed hasn't stopped us from suggesting improvements in the past, so why should it now?

Wouldn't it be better to have some kind of share system, based on POP type instead? E.g. farmers get 1 share and capitalists get 50 shares (or whatever). Add up the total number of shares for all your POPs, divide exports by number of shares and distribute accordingly.

Do small POPs require as many goods as larger POPs? If not, then share size should be based on POP size as well as type.

Rafiki

 

[Derek Pullem]

Its been suggested (was suggested at 1:4:10 but who knows what the real answer is )

 

[OriginalRafiki]

And the NDA stops you from letting us know the fate of that suggestion?

Rafiki

 

[Derek Pullem]

And the NDA stops you from letting us know the fate of that suggestion?

Rafiki

Not in yet.

 

[OriginalRafiki]

OK, thanks

*crosses fingers and hopes it will be eventually*

Rafiki

 

[hildoceras]

Yes. Which is another reason why the increasing number of Clerks and Craftsmen get poorer and poorer

May you explain this one, i do not understand ... :wacko:

 

[Derek Pullem]

May you explain this one, i do not understand ... :wacko:

Country x

30 lower class POPS
10 middle class POPS
10 upperclass POPS


GDP of country at start = 100
30 units go to middle class on which they pay taxes
Income per middleclass POP = 3 units

Convert 10 lower class POPS to middle class
New GDP of country = 150 (increased factory output etc)
45 units go to middle class on which they pay taxes
45/20 or 2.25 units per middle class POP.

 

[OriginalRafiki]

May you explain this one, i do not understand ... :wacko:

If the number of clerks increases more rapidly than your export income, you will have more and more POPs to split the "middle" income and subsequently end up with less and less money each. However, I'm guessing that the export income rises at a rate fairly close to the number of clerks, since both numbers correlate to the number of factories you build/expand.

Craftsmen are "poor", so promoting farmers or labourers to craftsmen won't shift the distribution of export income among the POPs.

rafiki

 

[Spruce]

May you explain this one, i do not understand ... :wacko:

I think it has to do with introducing boundaries in the game engine - or keeping the engine manageable,

to avoid exponential growth and exponential rise of demand, prices, etc,

anyhow, most dev's say nothing about their game engine, so we should take this into consideration,

 

[unmerged(11049)]

Then if there are no farmers & laborers & soldiers, 40% of export income go to hell ?

No, it is not go to hell. If you have not middle class, proportion will be
poor - 40%
rich - 60%.

If you have poor class only -- 100% of export income go to the poor.

 

[unmerged(6766)]

That's a very helpful explanation.

I had just assumed that POPs made money based on the RGO or factory they worked in... But now that explains why POPs working in precious_metal still don't accumulate money... they're as poor as farmers.

 

[hildoceras]

okaaayyy
I didn't saw it before because I (innocently) always progressively reduced middle class taxes to protect the POPs from reducing, keeping the balance I guess.

 

[Derek Pullem]

Alternatives are being explored in beta.