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Aero87
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Post: #1
Up and down.

Every winter I slash interest and increase money supply by the max for both, and get High growth for the next two quarters. How long will that work without causing real problems? Would cutting acquisition taxes help further increase my per capita income?


How high can the tax on capital go before it begins to eat the total amount?

02.08.2012 10:24
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Helsworth
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Post: #2
RE: Up and down.

It won't cause problems. Task options and reforms are just as important as budget changes, ergo you'll have to correlate them. For example, it's not a good idea to max out the money supply, if you're going to pick task options that stimy economic growth.
Cutting the acquisition tax will increase the net income and encourage work. A 4% tax on capital is cap in my opinion, anymore beyond that and you'll need skills to continue economic growth, though if you don't care about that and just want a state with a low GINI, rights and many benefits, you can go higher than 4%.


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02.08.2012 11:49
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Barbaron
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Post: #3
RE: Up and down.

But why i have still a Economic grow with a capital tax of 6,31% ?
(I mean with the state "Hornianer")

02.08.2012 15:13
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Helsworth
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Post: #4
RE: Up and down.

Barbaron Wrote:
But why i have still a Economic grow with a capital tax of 6,31% ?
(I mean with the state "Hornianer")

Because you've got the skills ^^, I didn't say that economic growth wasn't possible with a higher capital tax, just more difficult.


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02.08.2012 15:38
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Schwarzer_Abt
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Post: #5
RE: Up and down.

The force is strong with this one ^^


"...and Socialist governments traditionally do make a financial mess. They always run out of other people's money. It's quite a characteristic of them."

Margaret Thatcher
02.08.2012 17:00
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