Odd taxation

from Stardock Forums
Is increasing the tax rate supposed to lessen the amount of income gained? Sometimes the decrease is quite precipitous, like when I increased the tax rate from 48% to 49% and the income gained went from 27bc to 5bc.
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Reply #1 from Stardock Forums Top
That can be a result of morale. Unhappy people won't work and won't reproduce. Raising taxes sometimes can lower morale and therefore your income.

-Dave

~SDC~
Reply #2 from Stardock Forums Top
Welcome to the wonderful world of supply-side economics, my friend. :D Cut Taxes!!! Watch citizens who take home more pay work more to earn more!!! Watch productivity soar!!! Watch total tax receipts rise even though the taxation rate is lower!!! Hey, it worked for Reagan, it can work for you.
Ashes of the Singularity II
Reply #3 from Stardock Forums Top
Reagan produced the largest depht in the US history,,, bush jnr. is on a good way to beat him tough.

~SDC~
Reply #4 from Stardock Forums Top
And the Evil Empire he was fighting went bankrupt trying to keep up and disappeared while his nation prospered despite those deficits. It worked for him it can work for you!!! :D
Reply #5 from Stardock Forums Top
Increasing the tax rate is supposed to drop tax revenue in some cases. The rational behind this is that as taxes rise, fewer people are able/willing to contribute to the tax pool.

Mr. Lucky is correct in his assessment of the situation. There is a limit to how much money the government can pull out of the economy before people start revolting, hiding their income from the government, or dropping below the poverty line.
Reply #6 from Stardock Forums Top
... sinking their money into off-planet bank accounts, buying in to shady Drengin S&L schemes :)

~SDC~
Reply #7 from Stardock Forums Top
An interesting situation regarding taxes and morale last night.

It was my first game:
all opponents are fools, tiny galaxy, rare habitable worlds
I controlled all stars but one
Had excellent espionage on the one remaining opponent with whom I was allied
was 5 or 6 techs away from a tech victory
I had not colonized anything less than a base 16 world
I had built *all* social projects built on all planets
I had a healthy treasury stockpile

I set taxes to 0, morale jumped upwards to the 80s, but on each subsequent turn morale dropped despite a positive treasury and 0% taxes

I suppose this was due to either overpopulation (but nowhere to expand) - but still - 0 taxes and all morale social projects and morale still kept dropping.

Perhaps we need a fourth global slider (military, social, tech, morale) as adjusting 20 world's "propaganda" sliders is somewhat annoying.




~SDC~