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Vexing VAT reloaded

A place to spoil daily issues for those who haven't had them yet, snigger at typos, and discuss ideas for new ones.
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Menabrea
Civilian
 
Posts: 1
Founded: Dec 15, 2020
Capitalist Paradise

Vexing VAT reloaded

Postby Menabrea » Tue Aug 10, 2021 4:01 am

I discovered that this issue was discussed before, but could not find the proper thread since the old one is locked.
The outcome of a sever tax increase while having selected to abolish VAT is preposterous.
Al least it should have stated that there's no possibility to abolish VAT and therefore that income tax would have been increased.

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Merconitonitopia
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Posts: 1698
Founded: Jul 29, 2013
Psychotic Dictatorship

Postby Merconitonitopia » Tue Aug 10, 2021 4:29 am

Vexing indeed. The fact is that the issue just doesn't work well with the nature of the simulation.
Most players are going to interpret option 1 as 'let's reduce taxes.' The rationale that a lower VAT would necessitate a higher income tax is technically correct, but this rationale doesn't appreciate the fact that in practice, the result is not the transfer of taxation from one form to another, but a general increase in taxation, as far as the simulation is concerned.
Likewise, option 2 speaks of the necessity to fund education, etc., but the result is that these things are defunded.
Hence both options have the opposite effect of what any sensible person would assume.
I think in this case, it would be most reasonable to simply treat the taxation census as referring to all forms of taxation. (The census probably should be revised to mean all taxation anyhow.)


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