| Michael | Sunday, September 11, 2016 - 03:38 pm 
I have seen some countries with a low tax rate of below 10%, a few with 0, and some (the Malizian countries) with 75%. Which is the best option. I know most CEO's like you to have a rate of below 10% in order to attract private corps. |
| Zen | Sunday, September 11, 2016 - 05:07 pm
Look in the forum the question was answered a thousand times. We shouldn't keep spamming topics that have been explained before. Also this doesn't belong in general thread. It is beginners or help. I'm not trying to sound rude. I feel like I answer the same questions over and over again but no one seems to actually read the forum. |
| marshal.ney | Sunday, September 11, 2016 - 09:26 pm
The forum really needs a sticky feature, or a new topic for FAQ's. Searching with a keyword for discussion on this topic is pretty fruitless. "75% tax rate" yields nothing of worth. Other relevant keyword searches show either no results, or so many that paging through them would discourage many players.
The best option is going to depend on how you want to run the economy in a particular country. If you are seeking outside CEO investment, a low tax rate is one of the benchmarks they look for. Others are a good Corporate Welfare Index, and the longevity of the player(it's a bit of work to either create new corps, or move in the maximum, IPO them etc, only to have the player drop out in a couple of weeks, and have the country go back to the sims).
For a state run economy, with heavy state investment, or with investment from your own Enterprises, the 75% scales better for country income. Your not really making a lot more income with the tax, comparatively speaking, the majority of increased income is actually in other fixed payments. The tax rate is mainly to transfer cash automatically, which it does a bit better then the automatic cash payments or reducing cash levels in an Enterprise time-wise. This way you are running your economic engine from the countries, not from your Enterprises as much. There are other benefits, such as command and control to consider.
Cordially yours,
MNey |
| Zen | Monday, September 12, 2016 - 08:11 am
Taxes are merely for show in your finance index if you have an economy based off of only state/owned enterprise corporations. However, and most importantly having high taxs in a large country state based economy effects how large your active military can be before the country automatically disables military weapons and lowers wages.
Having a large amount of state owned, public corporations where the host country has low share ownership >25% for example, is also massively effected by taxes. Having low tax with most public corporations will push money out of the country and into foreign investment funds. Having high taxes will keep the money in the country, with the added 250/250 upgrade benefits.
If your country economy is mostly fueled by foreign enterprises you should have lower tax to attract more foreign corporations. You pay nothing into them, they pay your worker salary and give you a share of their profit. You benefit greatly off of them. However, I will add. This might upset a lot of strictly CEO type players. I believe if your welfare is above 120 you can, and should keep your taxes at or just below 30 because you are having them pay the same tax as any ai c3 with the benefit of more production and full corporate staff. If you have a large country for example over 100 million population with around say 200 foreign ceo corporations 1 percent tax differences effect your income by billions.
Most players don't have countries larger than 60 million population. So my numbers are usually for much larger countries. I can make countries with 100 million+ population within a few weeks costing me a grand total of 0gc and a ton of SC$( military loss )I've had at least 10 countries so far with over 100 million population at some time and 3 with over 200 million. A few billion total adding up all of the countries I've sold. Kinda crazy actually when I think about it. I don't think any other player has sold so much population. I may be wrong.
I have always had 75 tax and 100 profit transfer. and it will always be that way for me. |
| marshal.ney | Monday, September 12, 2016 - 06:40 pm
Zen,
Any chance of you making a guide about the economy? I feel it would be as useful as Aries' guide on C3 war, as the economy drives the war engine. And you will receive the thanks of a grateful community.
Cordially yours,
MNey |
| Zen | Monday, September 12, 2016 - 08:59 pm
I don't focus enough on the economy for me to write a long detailed guide about the economy, I do not test and confirm most of the things that I say, I base my statements off of quick observation. Sort of like if you skim chapters in a book and then make a C- grade book report. I haven't had any empire besides the one on FB last long enough for me to sell my shares and buy them back into my investment funds in order to "lock" my public corporations and funnel 100% of their income back into my empire and population paychecks. This is what Aries has done on his LU empire, and it is by far the most highly efficient economic powerhouse on simcountry. I would set up an empire similar to Aries, but unlike him I have no patience to keep countries/empires around long enough to create an integrated central economy that influences my entire empire.
My play style is extremely different from most players. I literally do not care about my countries nearly the way most players do. My countries usually only last a few game decades.
Really all I can say right now that I fully believe is the best long term empire based economic setup is to have at least 3 countries and an enterprise.( 3 countries also good for full fed support defensive wing setup )
- You should only build profitable corporations within your own empire. Any military or non-profit corporations should be owned by your enterprise and be in countries that are not in your empire. Keep in mind, the payout you give to countries is not based off of your profit. It is based off of your income. This is why some unprofitable military or space corporations can be good corporations to have in your country if you do not own them yourself... and you should encourage others to allow you to build non-profit corporations in their countries.
- Join or create a common market and have all of your countries/enterprises in that common market.
- Set up contracts between your country and corporations that produce products consumed by the population. This excludes government corporations, and corporations that supply primarily government services/maintenance. Like transportation and healthcare corporations. Military maintenance corporations are an exception because higher quality maintenance is more efficient than lower quality military maintenance. This does not apply to transportation maintenance. Do not build any food corporations that are never in shortages because you won't be able to make them public. Home equipment, services, all military maintenance, computers, software, nuclear power( converted into electric power ), and construction are a few examples of corporations that should have contracts with your country and other countries in your empire.
- Do NOT set up contracts between your corporations and corporations within your common market/empire. You can not control the quality of supplies in your corporations. This will lower profit. Your corporation supplies will be over priced, and the quality will be too high becoming unprofitable. Sell exotic or rare supplies like plutonium, stealth bombers, weapon grade uranium, and land based cruise batteries to your corporations directly from your country/enterprise storage or make the correct number of specific corporations in order to supply corporations that require specific supplies without shortage or high surplus. Some surplus is okay just incase you need it. Corporations that require specific supplies should however be owned by your enterprise, it is much easier to manage them all under an enterprise rather than countries within your empire.
- Order strategy and quality for products in your country. All products consumed by the population should be at 300 quality. All government products with the exception of military maintenance should be set to 120 quality. You can check these supplies by going to your Financial Statement -> Spending. Split in two categories, consumption by the population, and spending by the government. Having lower quality products decreases the cost of healthcare, education, transportation, and other government based services. Your population will spend on higher quality products if they are paid more. This increases welfare which increases production which increases income which increases spending. It is all good for the country. In my opinion a strong economy is not based off of the profit/income ratio but more on the raw income of your empire. This is a good example of the United States vs China. Both countries are powerful respectively, however citizens in the United States are happier overall from those in China because they are paid more and can consume more freely. Even though the country is around 20 trillion in debt.
- Indexes. You should have the following indexes. Education should be between 130-140 depending on the percentage of the population still in school. If your population is of a higher avg age like 34 years or more and your country population is in decline, 130 education index is fine. Since you will not be producing a lot more workforce. If your country age is young, around 32 or 33 years 140 education is okay because you will need to educate more young workers into specific professions. Having very high education index is inefficient and will over produce higher professions and you will have to keep changing profession of workers back into low level medium and high level workers. You should keep education over or at 130 because it directly effects welfare. Healthcare should be between 80 and 120. Healthcare over 120 is too expensive and actually hurts your country in the long run. Your population will grow older and in return there will be less fertile population for producing newborns or 0-4 age group. This will cause population decline. Players try to counter population decline with more hospitals which only makes it even worse increasing decline in the long run and increasing price. Eventually it will ruin the workforce of a country. The only reason to have lower index of healthcare like 80 is to allow the population age to decline and raise the percentages of younger population. Just like in the real world. Rich countries with very good healthcare are in population decline, Japan is a good example. Poor countries with bad healthcare are increasing rapidly, take Nigeria for example. Transportation should be at 130. Social security should be around 80 index or 72%.
- Back to why you should have 3 countries and an enterprise. This is for IPO purposes. When you decide your country is set up the way you like and dont plan to increase the size of the country you should set tax and profit transfer to 0. Lower corporate worker salary to 200 or 100. Once corporations reach 500B value you ipo them and set your portfolio targets to 24.95-24.99%. Once you own the set percentage of shares in all corporations you should increase taxes to 75 and profit sharing to 100 also increase corporate worker salary to 400. Once these corporations value decreases to between 100-250B you should then start buying your shares back with your other countries investment funds. You still get the profit from shares sold and can buy ownership back. A country can own up to 40% of another country's corporation shares in its investment fund. So having 3 countries effectively allows you to own 100% of a corporation while still having the 250/250 upgrades. Added benefit of full profit into your investment funds and dividends. The more shares you have in your investment fund the more your population is paid and the faster your investment fund surplus increases. The more your population is paid the higher the income tax, higher education and healthcare contributions and higher consumption. This increases income or production of your country and makes your people happier. With more income per person. Housing value increases as well. Pretty much all assets are increased. This creates an integrated empire. An economic powerhouse rather than separate states under one ruler.
- Your enterprise within your empire. You should only have enough enterprise corporations in your countries to re educate the maximum number of housewives and rehabilitated disabled workers back into the workforce. For larger empires more than 20 enterprise corporations are needed for this. All you'd have to do is transfer state ownership to your enterprise through shares after the 20 enterprise corporation cap.
There are a few things I'm missing, and a few things I do differently myself. I believe this is the best economic setup for an empire. This is an advanced level setup not intended for players who own only one country. This is meant for players who want to have a large integrated empire. You can call this a guide if you want, its more of me just spitting out information ive gained over months of playing. You dont have to take it literally unless you want, it is good for players to read this and take a few things from it here and there. It will help.
Hope this helps (:
Edit: This is just my version of a perfect economy. This has nothing to do with the quirks or how the economy works. As stated before it is all just what is on paper when it comes to tax and profit share, until public corporations come into play. Your actual( not on paper )income doesn't increase or decrease with higher/lower taxes.
If only I could apply knowledge in the real world I wouldn't be suck delivering food for tips lol |
| NATURES WRATH | Monday, September 12, 2016 - 11:52 pm
Helloa Michael  I've got 0% because I'm lazy. I can be away for months and the corps in my country are still there. I can delay on paying my subs and the corps are still there. If your lazy go for 0% and get your country in order, then promote your country and then chill out but if your not lazy then make your own corps and squeeze everything you can out of them with high tax's (y)
Edit....Wot still no like symbol?  |
| Skyler Denver | Friday, September 16, 2016 - 04:09 pm
Thank you so much zen... |
