Fwurg

[Brend]

Based on the discussion at the end of the write-a-thon on tax brackets, late game income and high spendable incomes, I present the following proposal.

Tax Brackets & Internal Friction

Taxation in the Union is very favourable for the larger factions at this moment, since the amount of taxable income needed to go into the next tax bracket quickly increases. This proposal makes the taxataion factor grow in a linear fashion.

All tax brackets will now be 1000 wide. This means that the tax brackets will become:

• Tax Bracket 1 (the first 1000 ): 12.5%
• Tax Bracket 2 (the next 1000 ): 20%
• Tax Bracket 3 (the next 1000 ): 30%
• Tax Bracket 4 (the next 1000 ): 40%
• Tax Bracket 5 (all other taxable income): 50%

The change to taxation is an OOC-IC realignment. However, the tax system after that is still in the IC domain.


Next to taxes paid to the Union, we will introduce a new mechanic based on spendable income. We call this mechanic 'Friction'. It models the fact that, when a faction has large amounts of spendable tax, internal friction starts eating away at this amount. Where these taxes go depend on the culture of the faction, but it invariable disappears.

As some examples, think about increased bureaucratic councils for Niom, lavish feasts and large estates for the nobles of the Veolian Commonwealth, or extremely high bonusses for the upper echelons of all Praetorian corporate boards, etc.

Friction is calculated over the spendable taxes. Spendable taxes are defined as (taxable income + trade balance - union taxation). I propose to have the following friction brackets:

• Friction Bracket 1 (the first 3000 ): 0%
• Friction Bracket 2 (the next 3000 ): 10%
• Friction Bracket 3 (anything above that): 20%

This makes it so that the first 3000 spendable create no measurable friction. The next 3000 (so from 3001 to 6000 spendable income) have 10% of friction, any spendable above that will have 20% of friction.

The friction part of disappearing income is purely in the rules domain.

Discussion

Currently there are a few scenarios: small worlds have a little taxable income, some large worlds have a lot of taxable income, and some large worlds have a lot of special goods.

By making the tax brackets linear, smaller worlds can more easily catch up, as larger factions grow faster, but will then enter the next level of taxation faster as well.

The addition of friction means that those that receive large sums of through trading special goods are losing some of that money as well. This does two things: it makes it easier for smaller worlds to catch up, and it encourages those players to make sure that some of their wealth goes elsewhere.

There is an additional scenario: a large world whose taxable income is above 3000 after union taxation. They will be hit by both Union taxes, and by the friction. They will see a very steep increase in 'lost tax' the moment they do so because the friction is taken from the taxes after union taxation.

Example cases (based on 149 data):

• Praetorian Empire (old): 617 taxation with final spendable of 3370
• Praetorian Empire (new): 681 taxation, 30 friction with final spendable of 3276
• Veolian Commonwealth (old): 349 taxation with final spendable of 5917
• Veolian Commonwealth (new): 361 taxation, 290 friction with final spendable of 5615
• Hiocan Society (old): 224 taxation with final spendable of 1220
• Hiocan Society (new): 224 taxation with final spendable of 1220

You can check out the preview at the development Tax Collector β3.

[Stuiter]

Looks good, the difference in tax for bigger faction is a few hundred and none for the smaller.
You have set the internal friction a little to 3000 instead of the 2500 you first mentioned.

[Gerben]

I think this is fair, it sure stimulates the larger economies to help the smaller ones grow. I also like the addition of friction, which seems a logical consequence of having to much spendable income ( much like dissent).

VO!

[Fedor]

I have looked this over and it seems alright.