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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Lowering tax levels: where does the money go?

Topics: Beginners: Lowering tax levels: where does the money go?


Sunday, June 30, 2013 - 05:29 pm Click here to edit this post
Hi everyone,

I have a little question. Yesterday, I lowered the corporate tax level from 10% to 8%. However, the corporate tax income of my country declined from about 1,700M to 0, and after a few months it increased again to about 370M. If I reduce the tax rate from 10% to 8%, should the corporate tax income not be somewhere around 1,360M?



Sunday, June 30, 2013 - 05:52 pm Click here to edit this post
Collected taxes are depended on the sales of goods/services from the corporations located in your nation. Corporation produce every month but are not always selling the goods straight away, depending on supply/demand on the market (and trade strategies).

Your logic is sound, however, you need to have a bigger data-sample. Over the course of years it while be correct, lowering taxes with 2 % will reduce your income from taxes linearly.


Sunday, June 30, 2013 - 06:32 pm Click here to edit this post
Thanks for the quick reply!

The disappearance of corporate tax income occurred more often after a tax rate reduction. I wondered why, because in general all companies in my country sell their products every month. But good to hear the income level will be corrected over the course of time ^^

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