Corporate Tax

City Economic Simulation DLC for Capitalism Lab

Should they add Corporate Tax into the Game?

Yes
23
82%
No
5
18%
 
Total votes: 28

titi82000
Posts: 8
Joined: Fri Oct 26, 2012 1:22 pm

Re: Corporate Tax

Post by titi82000 »

Realism need taxes.
However in reality, big companies don't pay really taxes with their bench of lawyers and they know perfectly the tax mechanism regims.
Look at wikipedia on irish double sandwich, or dutch sandwich the most common techniques used by many major companies and start ups that turn to IPO.
Normally in most occidental countries tax of 30-40% are paid by medium sized SMEs that don't know how to avoid taxes. I would suggest an option at the starting menu.
In case of yes, depending on your profit size, you could buy lawyers or external lawyers buy paying a fees, that will allow you do drop your taxes depending on the strategy you setup. However, in case of financial crisis, the government could punish you with some taxes to please the public opinion, increase taxes partially during the crisis etc.. They are many ways to do so. Also some countries could allow no taxes on corporate profits so you could displace your headquarters there etc..
pierrepita
Posts: 8
Joined: Mon Jun 02, 2014 3:21 am

Re: Corporate Tax (Reasons to be against it)

Post by pierrepita »

If corporate taxes are to be implemented then the government should have some kind of spending role which currently hasn't, this money taxes should go (if they happen to exist) somewhere other than an empty black hole in the game or else it's completely useless unless you want to get your finances damaged just for nothing.

The same to paying advertising to state own media, where is that money going? Does it affect the money supply later on or what?

Corporate taxes without an existing goverment would just interrupt the normal flow of money that causes GDP to grow (in a realistic way), therefore, unless this money from taxes finds a way to circulate in the cities' economy I'm completely against it.
Twitter: @PierrePita
counting
Level 8 user
Posts: 843
Joined: Wed Jan 29, 2014 12:44 am
Been thanked: 1 time

Re: Corporate Tax

Post by counting »

Since the corporate tax mechanism falls within the city/government expansion, so it should be part of the over-all mechanism as well, otherwise how would a local government get their income? if government agencies in this expansion acted like firms in corporations, they will need source of income to perform their functions (firemen, police, health care, educations, etc), public expense isn't cheap, and tax rate or the tax policy, even tax return policy could be factors to attract corporations to particular cities. Image a city founded education program to get your employee higher skill or trained quicker, it will be tax money well spent.
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pierrepita
Posts: 8
Joined: Mon Jun 02, 2014 3:21 am

Re: Corporate Tax

Post by pierrepita »

Whatever the mechanism is used for the government to get involve in the game mechanics it should be simple and, in my opinion, able to be influenced by rich corporations, with special donations, advertised propaganda, bribes, etc. It's just a every-4-years thing, it shouldn't take us time at all, we invest more time in R&D.

Government spending could be a great idea for an expansion, whether it's financed by money printing (more money supply and inflation) or corporate tax, sales tax, income tax, etc. This spending could give a bonus boost to consumers spending as well, as keynesian economist say, leading to gdp growth, but my focus point is that the money that the government takes should be useful for something and not just a difficulty in the game and... to make it more interesting, we should be able to influence the government attitude (central bank attitude, monetary policy, tax policy, etc).

Those are my recommendations if the corporate tax idea really moves forward.
Twitter: @PierrePita
counting
Level 8 user
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Re: Corporate Tax

Post by counting »

Ya, I agree there is plenty of room left for government income/expenditure mechanism. I also believe we need a financial mechanism more urgently than government, the whole regulation of monetary policy wouldn't be reasonable and believable without it. We don't even have a "banking system" in the game to back it up.
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Esoteric Rogue
Level 6 user
Posts: 413
Joined: Sun Nov 18, 2012 8:18 am

Re: Corporate Tax (Reasons to be against it)

Post by Esoteric Rogue »

pierrepita wrote:If corporate taxes are to be implemented then the government should have some kind of spending role which currently hasn't, this money taxes should go (if they happen to exist) somewhere other than an empty black hole in the game or else it's completely useless unless you want to get your finances damaged just for nothing.
Your secondary premise, to damage my revenue, is my desire. The game needs more money sinks. Corporate tax is an undeniably realistic one.
pierrepita
Posts: 8
Joined: Mon Jun 02, 2014 3:21 am

Re: Corporate Tax (Reasons to be against it)

Post by pierrepita »

Esoteric Rogue wrote: Your secondary premise, to damage my revenue, is my desire. The game needs more money sinks. Corporate tax is an undeniably realistic one.
I agree with you on that, seven tax haven cities are way too unreal, but anyway, money should go somewhere, I hate to think that my taxes are being wasted... as usual.
Twitter: @PierrePita
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