Creating an "income tax" or "revenue tax"

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europegrad
Hobo
Posts: 11
Joined: Fri Aug 27, 2010 12:34 pm

Creating an "income tax" or "revenue tax" Unread post

I want to create a sort of income tax or revenue surcharge to apply to all companies once certain conditions are met.

Essentially, I want to withdraw a % of YTD revenue from each company cash. I'm doing this as it follows:

EVENT 1 - recurrent Yearly (End)
Force to test against all companies

Effect:
Set CV4 = YTD company revenue



EVENT 2
Force to test against all companies
*conditions for tax are met, then this set of effects follow:

- Set CV3 = CV4
- CV3 = CV3 * 8 (in this case I'm charging 8% revenue tax)
- CV3 = CV3 / 100
- Company Cash - CV3



Will this work (e.g., reducing cash for each company as 8% of their last year revenue)? More specifically, provided I put the effects in order at the "effects" tab, will they be processed in the exact order (as not to - for instance - withdraw the cash (cv3) before making the other calculations).

In a broader sense, can I use company variables to make short calculations in each event (provided they are not storing long-term important data)?
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Blackhawk
CEO
Posts: 1112
Joined: Thu May 21, 2009 2:34 pm

Re: Creating an "income tax" or "revenue tax" Unread post

You can use the variables to create an income tax at the end of the year if you would like. I believe in my beta TM map North v. South I used a formula in there as well to create an income tax at one time.

I'm not sure I follow why you're making CV4 equal to the YTD revenue, but then making CV3 = CV4. (Maybe CV4 is to display last year's revenue in the ledger)

But yes you can put multiple calculation effects into the same Event. So you can do:
Define CV3 = YTD revenue (or CV4)
CV3 * 8
CV3 /100
Company Cash - CV3


The biggest problem with an income tax like this is that a lump sum is taken at the end of the year and if the player is not expecting it, it can put a fragile company that spent all its profits deep into the red as they'll have forgotten to pay their income.
davey917
Hobo
Posts: 46
Joined: Tue Nov 14, 2006 12:24 pm
Location: Blair, Nebraska

Re: Creating an "income tax" or "revenue tax" Unread post

As Blackhawk says, it will work. The "problem' of the lumpsum payment can be worked around if you want, but it dosen't really matter for the most part.

One problem i ran into is the limits the game has with large numbers (over about 2 billion i think).
If you first multiply YTD Revenue by 8, you might get wierd results.
You could devide by 100 first then multiply by 8.

Abother option would be to just devide by 12 or 13.
Deviding by 13 would yield a "tax" of 7.69%;
deviding by 12 would yield 8.33%.

The only real difference is it 'cleans up' the effects list a little.
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