NationStates Jolt Archive

Or am I missunderstanding.

A country's report says...

"Its hard-nosed, hard-working, cynical population of 5.333 billion are rabid consumers, partly through choice and partly because the government tells them to and dissenters tend to vanish from their homes at night."

but then it says...

"The average income tax rate is 100%"

How are you going to spend money on consumer goods if the tax rate is 100%?

It's a game. This nation has chosen to do this to his nation through his issues. ;)

"The average income tax rate is 100%"

How are you going to spend money on consumer goods if the tax rate is 100%?

One way of reconciling this is to imagine that the tax rate is not the same as the proportion of tax actually paid. What I mean is that tax allowances and credits will reduce the amount actually paid.

The tax rate maybe 100% but the government may equally issue variable tax credits dependent on a whole variety of factors such as job done, hours work, number of children, age, whatever.

Just a thought

Everyone in the country lies on their tax returns and works under the table. Then it works out.