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Why is corp tax only applied to mission bounties?

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Khergit Deserters
Crom's Angels
#1 - 2013-02-27 19:13:04 UTC
As we know, corps can only tax their members' mission bounty income. No tax on income from sale of items, mining, player bounties, or any other source of income.

This creates an unbalanced tax burden on the corp mission runners. Corp members like me who just do invention, manufacturing, trading and PVP make isk that's never taxed. Does anyone know the game design/game mechanics reason for this? There must be one.
J'Poll
School of Applied Knowledge
Caldari State
#2 - 2013-02-27 19:15:32 UTC  |  Edited by: ISD Tyrozan
EDIT: Rule 18-New player bashing is prohibited. - ISD Tyrozan

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Tau Cabalander
Retirement Retreat
Working Stiffs
#3 - 2013-02-27 19:40:07 UTC
I hate taxes, so when I became CEO, I set the tax rate to 0%.

As the corp still needed ISK to operate, I then got all the members to pay a lump sum.

After that, members donated to the corp as needed, and as much as they were willing to.
Khergit Deserters
Crom's Angels
#4 - 2013-02-27 20:00:23 UTC  |  Edited by: Khergit Deserters
I don't see anywhere that market transactions can be taxed. Can anybody confirm?

Here's what an ISD said in this thread from 9/2012: "Tax Rate refers to how much of a Corporation member's income goes into the Corporation's wallet. It's however limited to Mission Rewards, Bonus Rewards and NPC Bounty and applies only, if the amount is 100,000.00 ISK or higher"

Basically, the reason for my question is:
-I'm an officer of a corp and we have a tax (to cover ship replacement for members)
-I rarely do missions anymore, so I rarely pay corp tax. But I make more isk/month doing indy stuff than the new guys running do missions. The corp isn't getting any of my income at all (except for what I donate). It's not a fair situation for the mission runners, and it's not efficient for the corp's finances either.
-I've asked here before for ideas on creative ideas for ways to have miners, indies and traders contribute to corp finances. Never got any specific, practical idas though. Anything described involved some loose system of people donating isk.
-So this time I'm just wondering why the game only taxes mission-related income. There must be some game design/game mechanics reason. Because it seems like just putting a transactions tax on everyone would work fine.
J'Poll
School of Applied Knowledge
Caldari State
#5 - 2013-02-27 20:09:22 UTC  |  Edited by: J'Poll
Khergit Deserters wrote:
I don't see anywhere that market transactions can be taxed. Can anybody confirm?

Here's what an ISD said in this thread from 9/2012: "Tax Rate refers to how much of a Corporation member's income goes into the Corporation's wallet. It's however limited to Mission Rewards, Bonus Rewards and NPC Bounty and applies only, if the amount is 100,000.00 ISK or higher"

Basically, the reason for my question is:
-I'm an officer of a corp and we have a tax (to cover ship replacement for members)
-I rarely do missions anymore, so I rarely pay corp tax. But I make more isk/month doing indy stuff than the new guys running do missions. The corp isn't getting any of my income at all (except for what I donate). It's not a fair situation for the mission runners, and it's not efficient for the corp's finances either.
-I've asked here before for ideas on creative ideas for ways to have miners, indies and traders contribute to corp finances. Never got any specific, practical idas though. Anything described involved some loose system of people donating isk.
-So this time I'm just wondering why the game only taxes mission-related income. There must be some game design/game mechanics reason. Because it seems like just putting a transactions tax on everyone would work fine.


Sell something

You will see a tax payment to Secure something in your wallet

The game only taxes income from bounties and mission rewards because all the other stuff isn't taxable.

How can the game know what income you make from mining, if people keep half the minerals fro own production it will give false tax income...

Or they will trade it to an out of corp alt to do the selling for them =)

EDIT:

2013.02.27 20:15:28 Transaction Tax -150,03 ISK 259.003.651,75 ISK Sales tax paid to the SCC
2013.02.27 20:15:28 Market Transaction 10.001,80 ISK 259.003.801,78 ISK Market: sabrinaone bought stuff from < my alt >
2013.02.27 20:15:28 Brokers Fee -100,02 ISK 258.993.799,98 ISK Market order commission to broker authorized by: < my alt >
2013.02.27 20:15:22 Brokers Fee -700,00 ISK 258.993.900,00 ISK Market order commission to broker authorized by: < my alt >

Hmz...just sold some stuff and put up a sell order for other things on my alt...It is clearly taxed by the SCC (aka ISK sink).

Personal channel: Crazy Dutch Guy

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Tau Cabalander
Retirement Retreat
Working Stiffs
#6 - 2013-02-27 20:14:56 UTC
J'Poll wrote:
Sell something

You will see a tax payment to Secure something in your wallet

Secure Commerce Commission (SCC)

EVElopedia wrote:
The SCC is responsible for regulating and monitoring all trade transactions that take place on space stations. It has agents on all stations that record the transactions and they also offer courier and escrow services to make trade smooth.
Khergit Deserters
Crom's Angels
#7 - 2013-02-27 20:18:24 UTC
Right, that tax is going to an NPC corp, not the seller's player corp. (Being a semi-RP dork, I like to imagine it funds CONCORD).
But I still can't think of a game mechanics reason why corps can only tax mission-running activities.
BobFenner
Black Hole Runners
#8 - 2013-02-27 20:22:45 UTC
1 - Large mission blitzing op for all members for a few hours a month.
2 - Ask wealthier members who don't run missions to donate a couple of hundred million each month each.
3 - Charge your industry members higher fees for using your POS labs and manufacturing slots.

These are just a few ideas in a few minutes whilst bored at work.

I am sure with a bit of thought and creativity you can come up with others tailored to your corp requirements. Smile
My missus thinks of EvE as 'the other woman'. :)
J'Poll
School of Applied Knowledge
Caldari State
#9 - 2013-02-27 20:29:02 UTC
Khergit Deserters wrote:
Right, that tax is going to an NPC corp, not the seller's player corp. (Being a semi-RP dork, I like to imagine it funds CONCORD).
But I still can't think of a game mechanics reason why corps can only tax mission-running activities.


Like said...MIners don't generate money...neither does your invention itself

It's the selling that does...and no way to **** up the entire economy by taxing selling cause there is no way to see what profit they gain out of it...

You clearly didn't think it through and should seriously more look at how your corporation works.

My previous corp I was in did have a Ore buy back system where the corp would buy ore for Jita - corp tax % price...And most (if not all) miners used it, so that they contributed to the corp.

If your miners etc. don't contribute to the corp, then ask if they want to by sending some ISK themself...if not, make mandatory mining ops where all ore (and thus profit) goes to corp. But if we have to point that kinds of stuff out to you, good luck with the corp.

Oooh, you want to use the POS labs...It will cost you "x" ISK/hour to use them...is income from a non mission runner.

As there are plenty of ways to tax the non mission runners. The lack of seeing it doesn't mean the game is wrong, it's your vision.

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voetius
Grundrisse
#10 - 2013-02-27 20:57:27 UTC

I notice that the OP is in an NPC corp, so I'm not sure if the OP is asking about tax on missions for NPC corps or for player run corps?

I'm probably in the same camp as some of the posters above and think that if a player corp is in high sec and is not running an SRP for PvP activity then the tax rate should be set very low, i.e. enough to cover office / pos costs.
J'Poll
School of Applied Knowledge
Caldari State
#11 - 2013-02-27 21:03:09 UTC
voetius wrote:

I notice that the OP is in an NPC corp, so I'm not sure if the OP is asking about tax on missions for NPC corps or for player run corps?

I'm probably in the same camp as some of the posters above and think that if a player corp is in high sec and is not running an SRP for PvP activity then the tax rate should be set very low, i.e. enough to cover office / pos costs.


OP said he was officer of a player corp and that makes this an forum alt...which already means I'm not very willing to help

Personal channel: Crazy Dutch Guy

Help channel: Help chat - Reloaded

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Khergit Deserters
Crom's Angels
#12 - 2013-02-27 22:46:04 UTC
J'Poll wrote:
voetius wrote:

I notice that the OP is in an NPC corp, so I'm not sure if the OP is asking about tax on missions for NPC corps or for player run corps?

I'm probably in the same camp as some of the posters above and think that if a player corp is in high sec and is not running an SRP for PvP activity then the tax rate should be set very low, i.e. enough to cover office / pos costs.


OP said he was officer of a player corp and that makes this an forum alt...which already means I'm not very willing to help

LOL Thanks but no thanks, no need for more non-help. Your biggest contribution has been to not read the OP, make a false assumption, tnen create an initial derail of the thread. Thereafter you've helped by providing erroneous information, and then obstinately defending your rectitude with some fish flopping. Thanks but no thanks, amiga/amigo.

Again, the question was: Is there a game design/game mechanics reason for only taxing mission-running activities? But no matter, never mind, was just a rhetorical question I guess.

Salpad
Carebears with Attitude
#13 - 2013-02-27 22:48:30 UTC
Khergit Deserters wrote:
As we know, corps can only tax their members' mission bounty income. No tax on income from sale of items, mining, player bounties, or any other source of income.

This creates an unbalanced tax burden on the corp mission runners. Corp members like me who just do invention, manufacturing, trading and PVP make isk that's never taxed. Does anyone know the game design/game mechanics reason for this? There must be one.


The reason is that if corps can put a tax in the market transactions of their members, then that doesn't just mean that they get a share whenever mission runner members sell their loot and salvage. It will greatly hurt those corp members who are traders by profession, because any such tax will cut into their profit margins. Say I can buy minerals for 20 million ISK, and build some stuff which I then sell for 20.5 million ISK. My profit is 2.5%. If I have to pay 0.1 million ISK in sales tax to my corp, then my profit drops from 0.5 million to 0.4 million, or from 2.5% to 2%.

And keep in mind, I've invested lots of ISK into being able to build this stuff. I've bought Blueprint Originals, which I've then spent time and money to improve with research. Those 2.5%, which your proposal might reduce to 2%, aren't really profit per se. They're the return on a long-term investment that I've made. I spent a lot of ISK setting up this production business, and now the business is paying dividends.

A corporate sales tax would hugely educe those dividends, meaning that the time it takes me to re-coup my investment (say, 3 billion ISK) might get drastically increased, maybe (just to throw a random figure on the table) from 14 months to 40 months.



Of course there is a solution, which is to set the possible range of the corporate sales tax very low, so that it's only a tiny fraction of a percent. Even an amateur trader like myself has a turnover of maybe a dozen billion ISK per month. 0.1% of that in corporate tax would be 12 million ISK. I'd still consider 0.1% to be a high tax, so my preference would be for player corps to be allowed to adjust corporate tax in 0.005% increments, to a maximum of, say, 0.25%.
Mist Errious
The Hidden Emporium
#14 - 2013-02-28 04:00:28 UTC
Khergit Deserters wrote:
[quote=J'Poll][quote=voetius]
Again, the question was: Is there a game design/game mechanics reason for only taxing mission-running activities? But no matter, never mind, was just a rhetorical question I guess.


One reason can be that RL doesn't work like that. If you sell privately, your employer doesn't tax you. Also, you are taxed if you use corp facilities (at least if the corp owns them). Again, looks like a RL analogy.
Then, you would be able to put up ore/salvage buyback-schemes. I've run such ones that pay Jita -15% which in effect includes a tax (apart from the fact that members don't have to haul **** 20 jumps through null.
Dasola
New Edens Freeports
#15 - 2013-02-28 07:06:27 UTC
Be glad you can tax even the mission runners. Theyre usually the one that jump the ship fastest when wardeck hits.. This ismy experience...

No seriously, market transaction are not subject to corporation taxes, becouse that would kill trade in eve, leading to only npc doing market orders anymore... None is going to do trades if theres nothing but loss to gain there..

Nothing there prevents you to ask members of corporation to donate isk, some of their time to activities in order to gain some iskies to corporation.

miners? Just ask them to donate some ore to corp. Heck you could setup mining ship loan program just for this

I have had privledge to lead small corp in past for a while. It was newer problem to come up new ways to gain isk or other resources from members... It was much more difficult to figure out ways corporation could provide also benefits to members in balanced matter.

We are Minmatar, Our ship are made of scraps, but look what our scraps can do...

Katran Luftschreck
Royal Ammatar Engineering Corps
#16 - 2013-02-28 08:08:54 UTC
SCC handles all sales taxes & broker's fees, no exceptions - doesn't matter if you're NPC or PC corporation.

Also, it's not just bounties but also mission payouts that get taxed. In both cases, however, it is only taxed if the payout it over 100,000ISK. So really new players doing L1 missions probably won't be paying anything. Regardless, in the case of NPC corp then that is the flat 11% all NPC corps charge. For a PC corp then you pay whatever that corp tax rate into to company coffers.

http://youtu.be/t0q2F8NsYQ0

Malcanis
Vanishing Point.
The Initiative.
#17 - 2013-02-28 11:48:56 UTC
Corp tax on market orders would be beyond trivial to evade; I am in your corp; I sell all my stuff to my 1-man corp market alt for 1 ISK; your corp collects tax on 1 ISK.

"Just remember later that I warned against any change to jump ranges or fatigue. You earned whats coming."

Grath Telkin, 11.10.2016

Archibald Thistlewaite III
The Royal Society for the Prevention of Miners
#18 - 2013-02-28 14:10:49 UTC
Khergit Deserters wrote:


Again, the question was: Is there a game design/game mechanics reason for only taxing mission-running activities? But no matter, never mind, was just a rhetorical question I guess.




And the answer is yes. Its where the isk is created. Trading and Indy stuff doesn't create isk.

User of 'Bumblefck's Luscious & Luminous Mustachio Wax'

Vilnius Zar
SDC Multi Ten
#19 - 2013-02-28 19:39:38 UTC  |  Edited by: Vilnius Zar
OP, nope there's no way of doing this within the current system (as silly as it is) apart from setting up your own system. Depending on how much the corp spends for its members (not all corps need higher tax) There's an easy way of contributing.

Set tax to 0 and have every member pay a monthly fee based on his SP, possibly with a multiplier that's agreed to based how much much the corp actually needs to spend. So a 1 mil SP newbie pays 1 mil x multiplier and a 20 mil SP one 20x multiplier, etc etc. It's probably the easiest and most "honest" way of doing it. It only works with relatively small corps ofcourse.





p.s. J: less rage and more reading the OP :)
Vilnius Zar
SDC Multi Ten
#20 - 2013-02-28 20:42:45 UTC
He is asking a genuine, logical question. The fact he uses an alt for it is here nor there and this being the newbie forum genuine questions are there to be answered, not to get raged at. If you want to rage go do it somewhere else.
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