Simcountry is a multiplayer Internet game in which you are the president, commander in chief, and industrial leader. You have to make the tough decisions about cutting or raising taxes, how to allocate the federal budget, what kind of infrastructure you want, etc..
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High Taxes

Topics: General: High Taxes

Anthony King

Saturday, May 25, 2019 - 01:18 pm Click here to edit this post
I am testing my tax settings to the safe zone for my share market so i could have both the share market income and tax income at the same time.

Do not set your tax at very high level, do you know why? It will stuff up your performance which means it will make your P/E ratio go very high and it will driop your market value as well.

There for set your taxes to what you like and see if it does affect the corporations performances and see what happens.

Good luck and thank you and I am sorry if I made a double post.

I am testing this thread to see if it works.

Anthony King

Saturday, May 25, 2019 - 02:06 pm Click here to edit this post
Why the hell it takes 30minutes to put it in the forum?

Anthony King

Sunday, May 26, 2019 - 02:02 am Click here to edit this post
Anyone learning yet?


Sunday, May 26, 2019 - 04:19 am Click here to edit this post
Taxes are a really complex thing in this game. You are right and wrong with everything you have typed. How is that for an answer?

Generally speaking Low taxes attract ceos and are good for starting corps. Once your corps are fully teched out most people raise the taxes really high to get the most money out of their state corps. It is the only way to get money out of them.

Anthony King

Sunday, May 26, 2019 - 03:47 pm Click here to edit this post
NO ITS NOT, if you look at the P/E Ratio with taxes, you will notice that having high taxes will spike up the P/E Ratio which means you will have poor performance, test it for yourself and dont be lazy. The Sharemarket gives you monthly money better than the taxes, I have come close to around 370B a month directly paid to the country and it works try it for yourself.

Anthony King

Sunday, May 26, 2019 - 07:58 pm Click here to edit this post
I had to start a new country because my old one stuffed up with high taxes and a very poor performance.


Monday, May 27, 2019 - 01:22 am Click here to edit this post
Anthony I am assuming that you are responding to my post.

You are mixing a few things together. The p/e value is different from the performance of a corp.

You can have a low/high p/e value and still have a decent performing corp. Higher and lower taxes have influence on your p/e value but not on the performance of the corp. For example look at some of the corps of my ceo. I have plenty of corps in 0% tax countries and high p/e values. Yet the performance of all those corps are just fine.

For state run corps there are 2 ways to get money out of them. Profit sharing and taxes. If you want your state run corps to have as low amount of money in reserve then you need to raise both to the max. State run corps get refunded directly from the state if they run out of money. For those corps the taxes really dont matter.

As for the stock market, yes it is possible to earn a good amount of money from them. 370B is a decent pay out. I would like to point out that a well run ceo or country can easily get a lot more then that per month. But if you combine all of them together thats where the real money is ;)

Ps it would be nice if you didnt call somebody lazy just because they have a different opinion then yours.

Daniel Iceling

Monday, May 27, 2019 - 07:33 am Click here to edit this post
Letsie, Anthony King,

Taxes only really matter for CEO's and Public Corps. Since 100% of a State Corp is yours anyway, you get all the profit, whether you have taxes at 0% or 75%. Your Tax policy only really impacts, the CEO's in your Country, the Public Corporations, and your ability to IPO a Corporation.

Personally I set taxes to 0%. This enables me to attract CEO corporations. Additionally it lets CEO's keep more of their profits, encouraging CEO's to keep playing. We have far to few CEOs in SimCountry, so I consider it part of doing my bit to help the CEOs succeed. Plus I don't really need the extra $ anyway.

As for Profit Transfer, this is mostly cosmetic. The only thing it really effects is your cash flow statement under the finance tab. Since Corporations automatically transfer out any money over $100B to your country. You end up with all the cash anyway, whether you transfer at 0% or 100%. The difference is, while the % based transfers show up on the finance page, automatic transfers don't. So you can make it "look" like you are making more or less money than you really are, by setting a higher or lower, profit transfer %. However, either way, you end up with the same amount of cash.

Personally I set Profit Transfers to 65%. The Default is 50% but since I run 0% taxes, 65% means that the same amount gets taken out of the Corporations each month, as it would if I was running the default 30% tax and 50% profit transfer. I assume the finance index was balanced around the defaults, so this keeps the index working as intended.

Signed President of DanNation on LU


Monday, May 27, 2019 - 03:20 pm Click here to edit this post

Here is an interesting thing to experiment with. 15% taxes and 50% profit share takes more money out of a corp then 65% profit share. I know that this has to do with the point that each is calculated but it's still interesting.

You are right, once a corp hits 100B in cash reserves profit share becomes almost useless. Personally I don't want those trillions of dollars to stay in my corps. So I prefer to take it out of there before it hits the 100B reserve but in the long run it does not matter.

Daniel Iceling

Wednesday, May 29, 2019 - 09:27 am Click here to edit this post

The reason for the discrepancy is how the mathematics works.

Profits are counted after tax. Therefor a Corporation with Pre-Tax earnings of 1,000M in a country with 30% taxes and 50% Profit Transfer, will pay 300M in tax, and record an official after tax profit of 700M. 50% of which will then be transferred, so 350M will be transferred, and 350M will stay in the Corporation. In total, the country would receive 650M and the corporation would keep 350M.

If the Same country was running 0% taxes and 65% Profit Transfer. Pre-Tax profit would be 1,000M no taxes would be paid. So after tax profit would also be 1,000M. 65% of which would be subgect to profit Transfer. So 650M would be transferred and 350M would remain in the Corporation.

If you just add the numbers together 30% tax plus 50% Profit Transfer, you think it gives you 80%. But that is wrong. Because Profits are counted on the after tax total, not the original total. You have to do the math in the right order, or the result is inaccurate.

Signed President of DanNation on LU

Anthony King

Wednesday, May 29, 2019 - 11:09 am Click here to edit this post
Eats pizza tonight yum yum.


Thursday, May 30, 2019 - 10:54 pm Click here to edit this post
Taxes reduce the net profit.

The P/E value is computed by dividing the share price by the earning after tax!

if net earnings go down, P/E ratio goes up.

The value of shares is influenced by the P/E ratio.

At some high P/E ratio investment funds will start selling the shares.

If P/E ration is low, fund will purchase such shares.

Anthony King

Friday, May 31, 2019 - 08:31 pm Click here to edit this post
Thank you Andy, i knew it was the tax that stuffed up the p/e ratio and the value, thank you.

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