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Mechanics of tax vs profit share, state vs public vs private corps (Golden Rainbow)

Topics: Help: Mechanics of tax vs profit share, state vs public vs private corps (Golden Rainbow)

Slare (Golden Rainbow)

Thursday, November 20, 2008 - 09:15 pm Click here to edit this post
Hello,

I've got a country with a backbone of state corporations, and a handful of public corps in which the state has 85% ownership. I've got the default 50% profit share and 30% tax. I am attempting to boost my state's revenue, I am essentially breaking even if you ignore the noob monthly bonus. I'd like to do better than break even!

Problem 1: Going public with my state corps is extremely difficult if not impossible - primarily because of the P/E being too high. P/E is really only applicable to corps that have traded shares...this shouldn't even apply to state corporations. Because of this, there seems to be no mechanism to bring down the stupidly high share price of state corporations (and thus the P/E) so that I can do an IPO. I should be able to sell my own shares at whatever price I want. If I sold them for $1 each, the P/E would be really low and my IPO would be a stunning success. But I can't do that, so I can't do an IPO at all. What am I missing?

Problem 2: Tax vs Profit share - which is applied to state or public or private corps...and how are they applied? My guess based on reading the forum, can someone confirm or correct:

Public - Tax on profits based on % setting, dividends based on profits paid to shareholders (state owned-public and truly publics are just special cases of this class, same rules apply)

State - profit share via state % setting, tax % irrelevant

Private/CEO - Automatic 40% revenue (not profit) sharing, tax on profits based on % setting


With my current mix of public and state corps, whats the best way to proceed? It seems a mix of public/private is better for the state than the current state/public mix I have. How do I make the switch without tanking my income? Sell state corps to CEOs? Do some voodoo to make my state corps IPO-able? Drop taxes and just try to attract new private corps? All?

Thanks for your thoughts.

Slare (Golden Rainbow)

Thursday, November 20, 2008 - 09:56 pm Click here to edit this post
Ok, amendment - I now found that I can set profit transfers up for state-owned public corps. I guess my newest guess goes something like this:

Private: revenue share and tax gross profit

Truly Public: Tax gross profits and give out dividends based on net profit

State-Public: transfer % gross profit, Tax gross profit and give out dividends based on net profit

State: Transfer % gross profit

Still don't think this is quite right tho...

coolwind (Golden Rainbow)

Friday, November 21, 2008 - 02:14 am Click here to edit this post
1)set your tax to 0%.

2)set pofit share in your states to 100% to maximise revenue.

3) set profit transfer to 0 in your CCPs and watch the values soar and get dividends.

4) buy 2m pop regulary every few months and invite CEOs in to take up the workers.

regards,

Cool

KIMBERLEIGH on GR

coolwind (Golden Rainbow)

Friday, November 21, 2008 - 02:32 am Click here to edit this post
just had a look at your corps.

your salaries are too low and production is being restricted. Set the target salary to 390 and see how it goes. You will see production and welfare rise to at least 128%

you are selling the products far too cheap. You need to take a look at your trade strategies. In some corps you are starting off selling them 40 points below the quality!!

And you are paying too much for your supplies. Set the supply quality to 190 and the buying strategy at 98% with 7% uplift.

Also increase your transport index as this helps production and sales.

That should be enough for you to be getting on with

quaxocal

Friday, November 21, 2008 - 07:15 am Click here to edit this post
IPO's depend on these two factors ONLY:

1) 100B or more assets

2) P/E lower than 20 (long as the corporation turns a profit for about 2-3 months straight, this shouldn't be a problem)

Slare (Golden Rainbow)

Friday, November 21, 2008 - 04:59 pm Click here to edit this post
Ok, thanks for the pointers coolwind, I'll give some of that a try.

Question 1: Still having trouble wrapping myself around the quality concept in the game. Does a University 200 educate twice the students of a university 100? Can you power twice as much stuff with electicity 200? It seems if you are paying more for quality it better be worth it somehow, I just don't understand where these benefits are reflected in the numbers.

Question 2: Wouldn't 100% profit transfer from my state corps damage them financially over the long run? After all, they need to buy upgrades too....do I just need to keep an eye on them and funnel in cash as needed?

Question 3: If P/E is based on making consistent profit, is that before or after profit transfer? ie, will 100% transfer damage P/E? I am guessing not, that profit transfer will only affect cash flow and not P/E.

Thanks again for all the info, now I know some additional screens I need to keep my eyes on! For some reason I assumed the computer would be a little better at automanaging the buy/sale strategy, and hadn't been paying attention to that. Obviously I know better now.

Slare (Golden Rainbow)

Friday, November 21, 2008 - 09:14 pm Click here to edit this post
One more thing, coolwind....this line seems a bit of a contradiction:

"3) set profit transfer to 0 in your CCPs and watch the values soar and get dividends."

After poking around the interface a bit, it looks like the corporation's dividend setting *IS* the profit transfer setting...so it seems setting transfer to 0 would also mean 0 dividends given out.

Or am I misunderstanding, and there is another mechanism for dividends somewhere? Or do you mean let the corp grow for a while, and reinstate the dividends once it is doing better?

Thanks again all!

coolwind (Golden Rainbow)

Friday, November 21, 2008 - 10:03 pm Click here to edit this post
1)the higher the quality of your product the higher the price you get for it and it appears cheaper than a product at 100 base price.

2) Yes...the more profit you have coming in to your country account the higher your financial indx will go

3) the P/E is based on net profit after Tax. If you don't have any tax then the net profit is higher therefore your earnings per share is higher keeping the P/E low

4) well I have 53 CCPs set to 0 and they produce between 66-96 B a month dividends. Check it out.

coolwind (Golden Rainbow)

Friday, November 21, 2008 - 10:25 pm Click here to edit this post
slare....had a look at your trade strategies, you haven't set it right as you have failed to "trail the quality" go back in and check it. Also, t start with, Try going 15 above the quality with 5 drop and make sure you trail the quality otherwise the price does not move with the rise in quality in your corps

you always want to have "some left" otherwise you are selling too cheap. keep an eye on that together with the market price and availablity and tweek it to suit each corp. you will soon see your turnovers rising

Slare (Golden Rainbow)

Saturday, November 22, 2008 - 01:54 am Click here to edit this post
I see now that the dividend description says that corporations sometimes decide to give out dividends on their own....seems a bit odd that the primary shareholder doesn't have much say in how that works. :)

And your point about not having product left being non-optimal is well taken too!

Anyhow, I feel much more informed than I did yesterday. Thanks so much for the education, now I can go take over the world with loads of cash.

Kidding! :)

coolwind (Golden Rainbow)

Saturday, November 22, 2008 - 02:02 pm Click here to edit this post
no problem, just passing on experience gained from some of the guys above us, who have shared their knowledge and been directly very helpful to me


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