Modifying the income tax rate calculator

[[violet]]

Update (30-December-2010): This has been implemented! Thank you to everyone who contributed to the discussion!

In another thread it was proposed that we should look at modifying the way NationStates calculates income tax rates, due to the very high numbers of nations at either extreme. In particular, older nations tend to reach 100% tax rates even with capitalist economies.

A simple solution would be to normalize this number, so that reaching 0% or 100% requires increasingly more effort.

Here is an example, where you can input a nation name and see how it would be affected. This takes the same data underlying your current tax rate (but which may be less than zero or greater than 100) and shifts it toward 33% (the OECD average).

On the one hand, this gives us a more realistic distribution of tax rates, and a proper "reward for effort" for nations who have consistently cut or added government services over time. On the other, it may disrupt those who rely on the current system, or want to quickly get nations to 0% or 100%.

Update (30-December-2010): Implemented! Thank you to everyone who contributed to the discussion on this change.

[Glen-Rhodes]

I would be fine with this, seeing as how my tax rate would go down from 77% to 63%.

Would this make it any more difficult to get into certain categories? Or easier, for that matter? I try avoiding Inoffensive Centrist Democracy like the plague. I've also been trying to keep Democratic Socialists, while simultaneously bringing down my tax rate from 100% (which is what it was not long ago).

[[violet]]

No, it wouldn't affect Government Category. Just the number displayed on your nation home page and a couple of tax-rate-based descriptions there, such as whether your nation is described as having "punitive tax rates."

Also, no nation would be change rank; e.g. if your nation has the 555th lowest taxes in the world today, it still would under the new rates.

[Edo Edi Essum]

I like the new system better, as it is more reasonable. Still, if one abolishes capitalism (as I have multiple times, apparently), they should instantly reach a 100% income tax. I should maintain my 100% income tax.

[Unibot]

Seems like a good idea to me! *tries it*

[Umbra Ac Silentium]

Hmm, I do like it, though, it seems odd in one way. I had a lower tax rate for this main account, according to the World Rankings, than I did for Soylent Megacorp, and yet according to the calculator, my main's taxes would go up to 9% and my alt would stay at 0%? I'm kinda confused about this.

[Romanar]

I like! My tax would drop from 100% to 71%.

[Sedgistan]

Hmm, I do like it, though, it seems odd in one way. I had a lower tax rate for this main account, according to the World Rankings, than I did for Soylent Megacorp, and yet according to the calculator, my main's taxes would go up to 9% and my alt would stay at 0%? I'm kinda confused about this.

The WA Ranking is for 'average tax rate', whereas this thread is about income tax - the two are different. I've got a puppet which is in the bottom 10 in the world for 'average tax rate', but would have an income tax under the new system of 8%.

[Umbra Ac Silentium]

Hmm, I do like it, though, it seems odd in one way. I had a lower tax rate for this main account, according to the World Rankings, than I did for Soylent Megacorp, and yet according to the calculator, my main's taxes would go up to 9% and my alt would stay at 0%? I'm kinda confused about this.

The WA Ranking is for 'average tax rate', whereas this thread is about income tax - the two are different. I've got a puppet which is in the bottom 10 in the world for 'average tax rate', but would have an income tax under the new system of 8%.

Ah, ok, thanks, I see. Alright, but ya', I do like this though.

[Hassett]

I like it too, mine stayed at 0% so it would reward us who take answering issues seriously.

[[violet]]

If both nations have 0% rates, they may be ranked arbitrarily one above the other in the World Census, regardless of the underlying data.

[[violet]]

The WA Ranking is for 'average tax rate', whereas this thread is about income tax - the two are different.

Actually they're not: the World Census "Average Tax Rates" ranking relies on income tax rate.

[Umbra Ac Silentium]

If both nations have 0% rates, they may be ranked arbitrarily one above the other in the World Census, regardless of the underlying data.

The WA Ranking is for 'average tax rate', whereas this thread is about income tax - the two are different.

Actually they're not: the World Census "Average Tax Rates" ranking relies on income tax rate.

Ah, ok, thanks. But they were quite a few places, at least a couple hundred apart.

[Mahaj]

New system? Much better.

[[violet]]

If both nations have 0% rates, they may be ranked arbitrarily one above the other in the World Census, regardless of the underlying data.

I should fix that too.

[Timurid Empire]

My tax rate would go from 100% to 99%. I support this.

[Sionis Prioratus]

Yay!

The proposal: Normalize the tax calculation, so that it becomes increasingly difficult to reach 100% at one end and 0% at the other. Only the most committed nations would reach these values.

Got feedback? Have your say.

Nation:

The Jewish Kingdom of Sionis Prioratus

Current tax rate: 0%

New tax rate: 0%

[Warian Empire]

My main account Blazing Wars tax rate in the current system is 100%....in the new system....98% I must have reallllllly worked at it lol.

[Oviabshe]

I love this!

[Sionis Prioratus]

Would this affect the budget & GDP calculators we see on some sites? Or change the proportion of tax money that goes to - let's say - Education?

(Despite zero tax, one calculator shows my Education budget close to ten trillion - which I love.)




Also:

The Randomly Relevant Ratbags of Ardchoille

Current tax rate: 100%
New tax rate: 97%

Tax breaks for Moderators!! 'Tis a conspiracy, I say!

[[violet]]

If both nations have 0% rates, they may be ranked arbitrarily one above the other in the World Census, regardless of the underlying data.

I should fix that too.

OK, done. So regardless of whether we adopt the new algorithm or not, when nations are ranked on the "Highest Average Tax Rates" World Census, the underlying data will be used to separate nations with equal tax rates. So while the #1 and #2 nations will both have 100% rates, #1 will have underlying data that suggests it favors higher taxes more than #2.

[[violet]]

Would this affect the budget & GDP calculators we see on some sites?

Likely yes. I'm hoping to hear in from New Texas, New South Hell, and a few others on this.

Or change the proportion of tax money that goes to - let's say - Education?

No.

[Luxemex Intex Zeonex]

Great Idea!

[Hydesland]

Would you consider introducing tax brackets? Or would that be too much work/effort?

[[violet]]

Would you consider introducing tax brackets?

We do recognize that already, without getting into micromanaging brackets. Some nations are described as having a flat tax system while others a progressive one (i.e. tax rate increases significantly with income).