The main problem with the 100% tax rate method is the untimely server crashes that seem to happen so frequently. This may suddenly preclude you from lowering the tax rate before you log off. I've also heard countless stories of people forgetting to switch it before they log off.
As far as the 50% tax rate goes...when you're just starting out, before you have the strength to start hitting NPC's and becoming profitable, this method is very helpful. After you can farm NPC's, though, it is better to have a lower tax rate so you can que larger armies to be built with your higher idle population.



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