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Thread: The Best Tax Rate is 50% - PROOF

  1. #61

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    "Best" is a very subjective term. 50% tax maximizes revenue for a given, stable population. Gold revenue is only one of several quantities we want to maximize in a city, and frankly, one of the least important. My tax rate is 20% and I have huge surpluses of gold. More of my gold comes from raids than from taxes.

  2. #62

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    Yeh, tax income is like the least efficient way of making gold. I mean you can make what? like 5-7k/hr * 24hrs... lets say 125k gold/day from taxes. Or you can harvest 150k lumber/hr and sell it for something like 4mil gold/day. Or better yet, you could run raids on lvl 5 npc cities for 450k gold/atk... 7 cities running 1-3 attacks at a time a few times a day... Let's say 40mil? 100mil? 200mil gold/day?

  3. Text The Guide to Tax Rates for Max Gold

    DISCLAIMER:
    Wel, this is my first guide (actually it's my first post). I've been here for a while and one of the most common questions people pose me is: "What's the best tax rate?I looked around a bit and, apart from some isolate threads, couldn't find any good guide. So i thought I might give it a shot. I'm sure, most of the information might already been posted, but I sense having it explained with our good old math is the way to go. All the calculations were made by me, from the scratch, with the help of an Excel Spreadsheat.


    1-Introduction:
    I'm quite sure everyone heard about the "100%tax rate/disaster relief" stuff, so I'm not including it here in my post (specially because it wasn't my idea). This guide is about the optimum tax rate for getting the most of your gold while you're not around your PC.

    Please note that this guide doesn't take in account two important thing. First, the risk of being attacked which drops your loyalty and second the workforce (the later will be slighty approach in the end of the guide). That is something I leave to your consideration.

    I took some consideration about the game based on my experience and empiric observations. As you might have noticed, Gold doesn't tick every second like the rest of the resources (lumber, stone and iron). Instead it seems to tick every 15minutes or so. I'm not quite sure about this interval. Same goes for population and Loyalty which seem to tick in a period slighty higher. Anyways, for the sakes of the standardization and to simplify the calculations, I assumed population, loyalty and gold tick every 30 minutes. In the long shot, it doesn't make that much of a difference and I will assume the results would be similar.

    2-MaX Gold in a steady population:
    For this test, I used the proposition that the Population was steady (which means it does not vary along the time)

    Using the population X, and varying the tax rate from 0%-100%, i came with this graphic.



    As you can see, the optimum tax rate in a steady pop is 50% tax rate. that's not something new, and it's widely discussed in the forums.


    3-MaX Gold in a dynamic population:
    As you have probably noticed, the population changes in time. This is mainly due to loyalty-tax Rate interaction.

    Code:
    Pop = Loyalty% * Max Pop
    Loyalty% = 100% - Tax%
    The population of a determined city is equal to the product of loyalty in % by max population.
    Now, let's assume you were playing but it's getting late and it's time to go to bed . You were using the "100% tax rate / disaster" tactic. But Since you won't be getting up every 15m/30m to disaster relief, you want to set up a good tax rate. Now what would you go for? What's the best tax rate for optimum income?

    In the hypothesis I used a population of 10.000 inhabitants (that's why you see vales in y).



    This graphic show the accumulated gold revenue over time. It might be a pain to read, so here's another one, with only the 12 first hours.



    and the table of values (just with some turning points)



    Don't forget that getting your loyalty below the % of your workforce decreases other productions. If your loyalty reaches 0, your population riots, everything is paralised. And according to some testimonials (haven't tried it myself) the city might turn rebel.

    4 - CONCLUSION:
    In a steady population, the most profitable tax rate would be 50%. The max population should be raised to double the workforce needed.

    In a dynamic population, the appropriate tax depends on the duration of the player absence.

    For periods smaller than 10 hours, a 100% tax rate its the most profitable.

    Between 10 and 12 hours, it radically changes to a tax rate of 60%.

    between 12 and 20, 55%

    After 20 hours it stabilizes to 50%, which is the same as a stable population, which enforces the theory that the population should be the double the workforce needs.

    Last edited by tivie; 06-12-2009 at 10:09 PM.

  4. #64

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    I set the tax rate to be 20%.

  5. #65
    Join Date
    Jun 2009
    Location
    Bicester, England.
    Posts
    9

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    20% is a very comfortable rate. As mentioned in the start of the post, set your tax rate to 100% while playing and use disaster relief. When you log off set to 20, or whatever is comfortable for you.

  6. #66

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    Quote Originally Posted by miffyman View Post
    20% is a very comfortable rate. As mentioned in the start of the post, set your tax rate to 100% while playing and use disaster relief. When you log off set to 20, or whatever is comfortable for you.
    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.

  7. #67

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    can someone help me with my statisics exam?? =)
    We may affirm absolutely that nothing great in the world has been accomplished without passion.
    Hegel

  8. #68

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    Quote Originally Posted by Belisarius View Post
    Congratulations! You have just entirely bypassed the point.

    50% is the best tax rate if you're intending to keep a *stable* tax rate, meaning, without any outside variables. Meaning, like, when you sleep, 50% is the best tax rate. Because it, you know, maximizes the gold you get when it stabilizes.

    Why am I even pointing this out?

    That what I intinally though

    But having 25 loyotaly and 100% tax rate is the same at have a 50% tax rate ( and 50% populution)

    Now loyotaly decrease at 10 point and hour.

    So if I started at 100 loyalty I could leave it on for 7.5 hours without changing it.

    Assuming you most people sleep for 8 hours you could therotically leave it on while you go to sleep and still be ok.

    However you will have to set the tax rate to low afterwards

  9. #69

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    metri,are you on drugs, what are you talking about dude, my drunk nanna makes more sense

  10. #70
    Join Date
    Jun 2009
    Location
    Illinois
    Posts
    1

    Default

    It's 10,000. Not 1,000.

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