Consumption based economy

Discussion of the Economic Model in SR2010

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Bigred14
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Joined: May 16 2005

Consumption based economy

Post by Bigred14 »

Anyone succesfully try a purely Consumption taxed based society yet.

I have Twice and failed. It would appear that your entire population is giving you an income tax. Is this the case or is there a percentage of the population which does not pay income tax?

You have a tax rate setting for business', if I raise their taxes does that effect the end product in some way, they are selling to the customer? I other words does the price of thier product go up, when they are charged with paying higher taxes?

The economy appears to work pretty well with a normal Sales tax level around 8% and an income Tax level around 20 to 30%, depending on your other resources. But is this the only area it works in. When I raise the sales tax I get a pretty small increase in income, when I raise just the low income tax bracket I get a huge change in income levels. I would say just looking at the % change vs. income gained that close to 60% of my society is Low Income.
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