NationStates Jolt Archive

I read the little blurb for my nation, and this is what i encountered:
high-income earners pay a 100% tax rate
How has this happened? an 100% tax rate? :confused: :rolleyes:

I read the little blurb for my nation, and this is what i encountered:

How has this happened? an 100% tax rate? :confused: :rolleyes:

It's called socialism. Welcome to the world of decent policies.

When you increase the amount of government spending, you have to increase the tax to pay for it. If you keep increasing, without ever cutting spending, you'll reach 100%

Can you please elaborate on that?
Like, how did i do all that?

This goes better off in Gameplay.

S-P-A-M!!!!!!!! Pointless...

Can you please elaborate on that?
Like, how did i do all that?

If you've only just created your nation it'll be because of what you answered in the set of questions is gave you.

Otherwise, it's from how you answer issues.

S-P-A-M!!!!!!!! Pointless...
Its not as bad as the spam you just posted! ;)

This is just a result of making a choice to tax high income earners more than average people and increase government spending. When government spending increases so does tax, and you can get 100% tax rates for your population. It is glorious and in the real world such policies would not work at all because all people with high incomes would leave the country taking whatever capital they could and never come back resulting in brain drain and capital flight because high income earners usually have more skills. Nationstates does not have stuff like brain drain and capital flight really, you can have a frightening economy with 100% taxes.

Nationstates does not have stuff like brain drain and capital flight really, you can have a frightening economy with 100% taxes.

Well, I have a nonexistent income tax, and my nation is one of the leaders in Information Technology...perhaps there really is a brain drain?;)

My nation has had a 100% tax rate for everyone for a long time, but I've been working on improving my economy. It's up to "fragile" now.
And we actually have a private sector now! My nation's industry has increased from non-existant to "small but healthy."
As to how a nation has a 100% tax rate- if you keep increasing spending without any sort of budget cuts, it will happen eventually. My nation got that way because everyone has free college education, free healthcare, etc., and because my government spends a lot of money on education.

if it is only the high income earners paying the 100% tax, wouldnt there be competition for low paying jobs?

for 2 reasons

1. less tax

2. you would actually make some money

Mine's 100% too, but my economy is now at "powerhouse". I've explained it in my RP thread by saying that all basic services are provided by the government, and the sizeable budget surplus is returned to the people as a rebate, with which they can buy lixury items.

I have 100% averate tax and my economy is Frightening, with a "powerhouse of a private sector".

I also have no crime.

if it is only the high income earners paying the 100% tax, wouldnt there be competition for low paying jobs?

Unless there are special circumstances people often just give up working once the amount of tax they are paying on each extra dollar gets too high. For example if your income is just below the point where you start to pay a lot of tax you might not be interested in doing any extra work because once the tax is taken out you aren't left if enough money to make it worthwile to you and you'd rather spend the time relaxing than working. So I don't think there would be competition for low paying jobs, people would just work less hours.

Of course there are special circumstances. In world war two marginal tax rates where 90% for high income earners but many people considered it their duty to work hard during the war years despite the fact that they would earn little extra money for it. Although some people, such as President Reagan did reduce the amount they worked.

This happened to me, too.
It happened in responce to the following choice of issues:
1) Decrease spending in welfare, healthcare, etc, but keep the funding for business.
2) It doesn't matter how high the taxes are, just who's paying them. Reduce taxes on low income groups, and increase taxes on high income groups.
3) Something else

I guess I should have chosen Option 1, since my average tax rate is too high (40%). I think the highest income taxes in the United States is around 30%. I know that Gladstaders can't spare as much of their income as the wealthiest Americans.

I've had 100% tax and a Frightening economy for ages now. Of course, I don't RP it that way, otherwise my nation would collapse; I explain it by that income taxes are zero, sales taxes are very high, and the money from sales taxes is divided fairly evenly between free education, free healthcare, and national defence (everything else people have to pay for).

100% tax is only useful for storefronts, as it gives you a larger budget with which to make purchases. :p

I've had 100% tax and a Frightening economy for ages now. Of course, I don't RP it that way, otherwise my nation would collapse; I explain it by that income taxes are zero, sales taxes are very high, and the money from sales taxes is divided fairly evenly between free education, free healthcare, and national defence (everything else people have to pay for).

100% tax is only useful for storefronts, as it gives you a larger budget with which to make purchases. :p


I hadn't thought of doing it that way.

I hadn't thought of doing it that way.
That's 'cause you're not as awesome as I am. :p

Also, I wouldn't worry too much about 100% tax rates; over 13,000 nations are in the same boat anyway and they don't seem to be complaining. Well, not too publically anyway.

S-P-A-M!!!!!!!! Pointless...

How is it spam? Somebody has a question that they're entitled to ask, and yes, it involves gameplay. If you aren't interested in the subject, don't answer.

Just roleplay differently, it doesnt really matter, main stats that matter is population and economy in general

I have 100% tax and a "Powerhouse" economy, you jsut have to make sure that all economical stuff remains in the power of the goverment

100% tax socialism ftw.

Government pays for everything basic, including most food and housing, and anything else the people want for themselves they can either barter or come to an agreement with the government to where they can recieve something based on how many hours of overtime they've clocked in at work.

Just roleplay differently, it doesnt really matter, main stats that matter is population and economy in general

That's what I do. I've discarded the NS stats really because they're unrealistic and came up with my own (http://www.geocities.com/vicendum/vicendumspotlightrome.html#EconomicOverview) using real-world statistics (since I RP as a real world nation).