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Bug reports, general help, ideas for improvements, and questions about how things are meant to work.
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Cohuila Y Tejas
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Posts: 14
Founded: Mar 04, 2020
Inoffensive Centrist Democracy

Taxation

Postby Cohuila Y Tejas » Wed May 06, 2020 10:51 pm

Will increasing taxation increase black market?

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Obossania
Civilian
 
Posts: 1
Founded: Oct 26, 2019
Ex-Nation

Postby Obossania » Wed May 06, 2020 10:54 pm

Yes, because some industries would want to avoid regulations or checks by the local revenue agencies. This therefore makes them channel their products through the "black market" to avoid paying taxes.
Last edited by Obossania on Wed May 06, 2020 10:55 pm, edited 1 time in total.

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Drongonia
Minister
 
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Founded: Feb 11, 2019
Inoffensive Centrist Democracy

Postby Drongonia » Wed May 06, 2020 10:58 pm

Obossania wrote:Yes, because some industries would want to avoid regulations or checks by the local revenue agencies. This therefore makes them channel their products through the "black market" to avoid paying taxes.

I'm not too sure as the "Taxation" stat is strictly income tax (I think), whereas the "Freedom from Taxation" is more wide-reaching and seems to include sales taxes, corporate taxes etc etc.

Personally I'd say the black market stat is a combination of crime, economic activity, economic freedom and recreational drug use. However, I'm sure a mod/issues editor will be along to answer your question soon.

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Cohuila Y Tejas
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Posts: 14
Founded: Mar 04, 2020
Inoffensive Centrist Democracy

Postby Cohuila Y Tejas » Thu May 07, 2020 1:41 am

Obossania wrote:Yes, because some industries would want to avoid regulations or checks by the local revenue agencies. This therefore makes them channel their products through the "black market" to avoid paying taxes.

And is there anyway i can avoid thst?

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The New California Republic
Post Czar
 
Posts: 35483
Founded: Jun 06, 2011
Civil Rights Lovefest

Postby The New California Republic » Thu May 07, 2020 2:42 am

Obossania wrote:Yes, because some industries would want to avoid regulations or checks by the local revenue agencies. This therefore makes them channel their products through the "black market" to avoid paying taxes.

Taxation isn't as closely linked to the size of the black market as you'd think. The deciding factor seems to be the strength of the economy to absorb any higher tax, regardless of whether the economy mainly consists of private or government and state-owned industry; as nations with a strong economy and high tax rates, capitalist or socialist, still tend to avoid a large black market.
Last edited by Sigmund Freud on Sat Sep 23, 1939 2:23 am, edited 999 times in total.

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They're hoping soon, my kind will drop and die
But I'm going to wave my freak flag high
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Cohuila Y Tejas
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Posts: 14
Founded: Mar 04, 2020
Inoffensive Centrist Democracy

Postby Cohuila Y Tejas » Thu May 07, 2020 7:00 am

The New California Republic wrote:
Obossania wrote:Yes, because some industries would want to avoid regulations or checks by the local revenue agencies. This therefore makes them channel their products through the "black market" to avoid paying taxes.

Taxation isn't as closely linked to the size of the black market as you'd think. The deciding factor seems to be the strength of the economy to absorb any higher tax, regardless of whether the economy mainly consists of private or government and state-owned industry; as nations with a strong economy and high tax rates, capitalist or socialist, still tend to avoid a large black market.

So I have an All-consuming economy with an 18.5% tax rate. Do I need to increase taxation or economic freedom?
I am currently trying to decrease military spending as much as possible.
Last edited by Cohuila Y Tejas on Thu May 07, 2020 7:02 am, edited 1 time in total.

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The New California Republic
Post Czar
 
Posts: 35483
Founded: Jun 06, 2011
Civil Rights Lovefest

Postby The New California Republic » Thu May 07, 2020 8:44 am

Cohuila Y Tejas wrote:
The New California Republic wrote:Taxation isn't as closely linked to the size of the black market as you'd think. The deciding factor seems to be the strength of the economy to absorb any higher tax, regardless of whether the economy mainly consists of private or government and state-owned industry; as nations with a strong economy and high tax rates, capitalist or socialist, still tend to avoid a large black market.

So I have an All-consuming economy with an 18.5% tax rate. Do I need to increase taxation or economic freedom?

Increase economic freedom, by answering issues that will do that.

Cohuila Y Tejas wrote:I am currently trying to decrease military spending as much as possible.

There are issues that specifically deal with military spending, so those will help you achieve that.
Last edited by Sigmund Freud on Sat Sep 23, 1939 2:23 am, edited 999 times in total.

The Irradiated Wasteland of The New California Republic: depicting the expanded NCR, several years after the total victory over Caesar's Legion, and the annexation of New Vegas and its surrounding areas.

White-collared conservatives flashing down the street
Pointing their plastic finger at me
They're hoping soon, my kind will drop and die
But I'm going to wave my freak flag high
Wave on, wave on
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

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Cohuila Y Tejas
Lobbyist
 
Posts: 14
Founded: Mar 04, 2020
Inoffensive Centrist Democracy

Postby Cohuila Y Tejas » Thu May 07, 2020 10:11 am

The New California Republic wrote:
Cohuila Y Tejas wrote:So I have an All-consuming economy with an 18.5% tax rate. Do I need to increase taxation or economic freedom?

Increase economic freedom, by answering issues that will do that.

Cohuila Y Tejas wrote:I am currently trying to decrease military spending as much as possible.

There are issues that specifically deal with military spending, so those will help you achieve that.

Ja, Danke
(I'm not german)

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Pencil Sharpeners 2
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Founded: Aug 21, 2015
Father Knows Best State

Postby Pencil Sharpeners 2 » Thu May 07, 2020 10:14 am

Black market does seem to scale with taxation from my experience, though it is possible to run high-tax nations with low black markets.
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Zeritae
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Founded: Jun 10, 2017
New York Times Democracy

Postby Zeritae » Thu May 07, 2020 10:27 am

It's based on a variety of stats. These stats change with issues, and the stats changes are at http://www.mwq.dds.nl/ns/results/
Last edited by Zeritae on Thu May 07, 2020 10:28 am, edited 1 time in total.
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