NationStates Jolt Archive

The GDP calculator gives my nation these two statistics:

GDP: $730,000,000,000
National Budget: $196,188,960,000

However, if my income tax rate is 100% (i.e. socialism), shouldn't my GDP and my national budget be the same? If all of the money earned by workers goes to the government for distribution, should it not have a budget equal to the gross domestic product?

You have to remember, though, that GDP doesn't take out expenses... but, hm, interesting point... I think this is something that the original creator of the calculator didn't take into account. You could do a few things here, like simply going with your own numbers, or assume that the money has already been distributed.

--Felix

[edit: another note: I believe there are other GDP calcs out there... (though I can't think of any at the moment)... you might wanna look around for 'em]

It might have to do with the fact that your average income tax rate is 100% some would be less, or more depending on income in general. That might affect it.

It might have to do with the fact that your average income tax rate is 100% some would be less, or more depending on income in general. That might affect it.
How can you have some people being taxed more than 100% of their income?

It might have to do with the fact that your average income tax rate is 100% some would be less, or more depending on income in general. That might affect it.
How can you have some people being taxed more than 100% of their income?
It happens. >_>

--Felix

I dont think that the national budget on this calculator takes tax rate into account. I read a post by the creator some where that budget is calculated using civil rights. Apparently more civil rights means the government is going to spend more money on the public and thus have a larger budget.

You could try this calculator, to see if it is any more use

http://twr.1colony.com/ver8/calc8.0.html

there is another too, but I cannot remember the address.

Ok, from my understanding Pipian's calc goes by Civil Rights and Tax rate. Now, GDP - Gross Domestic Product, is not the ammount of money you make.. its the ammount of money the products the various corporations in your country make. Now, those business' have expenses.. hence you get a lower ammount to spend on the government.

Civil Rights needs to be taken into account, as a nation with more Civil Rights will have more productivity in production of various merchandise. If you have more civil rights, the populace is generally happy.. and they have increased productivity because of that. If you have low civil rights, the populace isn't as happy as they would be if you have more.. and thus they produce less.

It might have to do with the fact that your average income tax rate is 100% some would be less, or more depending on income in general. That might affect it.
How can you have some people being taxed more than 100% of their income?

You just take their entire income, plus another 3% of their bank account. :P