High Income Tax Rate

[Afrigidoloco]

Despite my government spending only being 38 percent of my economy my income tax rate in at 80 percent, why is this so high? How can my income tax rate be reduced, I've picked numerous issue options for reducing income tax but it still doesn't go down to any significant degree.

[The Great Boom]

It's one of the most finicky things. Some issues that don't seem to affect tax much can wildly swing it. Other huge expenditures barely uptick it at all. I recently took what I considered a tax neutral answer to an issue and I dropped from 68% to 63% (I'm a communist country, so that's not even that high). I've been slowly working back up to about 65%.

But a high income tax isn't a bad thing, contrary to what many think. It impacts the happiness and welfare of your nation in almost no significant way. I like to think of income tax like currency in this game. Most good answers need to be paid for, and the game's default is to raise income tax. So to do good things (most of the time) you have to spend. And picking an answer you don't like to save money now and then can pay for really good issue answers that force you to raise taxes.

I see you're an enormous, progressive democracy. That's going to be damn near impossible to get below 30% without sacrificing your values. So it's 38% or whatever is a great average for you. Prior to the 1990's, America had a higher than 38% average and we didn't offer decent progressive safety nets. The only reason our real life average has fallen is because we've cut taxes for the wealthy, as I assume you know, since your run a progressive country.

EDIT: Nevermind, I see it's 80%. That is shockingly high. I can't really fathom what you did to get it that high.

[Sancta Romana Ecclesia]

What I notice, is that the tax has a tendency to increase over time. When I started this nation, the tax rate was about 20%. Today it's slightly over 37% and I didn't select options that were socialist, at least I don't think so. I think that the currency analogy is apt. Improvements to your nation cost money which is gained from tax.

The high tax rate has no real adverse side effects in this game (which is unrealistic), it only hurts your average disposable income stat. Low tax has more negatives attached to it (at least in NS), since it actually causes very high income disparity and income of the poor goes down drastically.

As for how it can be reduced, there's no other option besides answering issues in a way that reduces it. It will go down eventually. Just keep reducing it (choose options focusing on saving/lowering taxes/avoiding expenses) until you hit the level you are satisfied with.

[The New California Republic]

Despite my government spending only being 38 percent of my economy my income tax rate in at 80 percent, why is this so high? How can my income tax rate be reduced, I've picked numerous issue options for reducing income tax but it still doesn't go down to any significant degree.

There are certain issues that have an option that results in slashing public spending to a significant degree, such as 18, 24, 135, 221, 260, 283, etc.

[Bears Armed]

"What is this 'tax' of which you speak?"

^_^

[WayNeacTia]

Despite my government spending only being 38 percent of my economy my income tax rate in at 80 percent, why is this so high? How can my income tax rate be reduced, I've picked numerous issue options for reducing income tax but it still doesn't go down to any significant degree.

http://www.mwq.dds.nl/ns/results/