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Another High Sec PI tax thread

First post
Author
Puissant
Tempora Heroica
#1 - 2011-11-30 20:35:16 UTC  |  Edited by: Puissant
Because it's day two of release and CCP still has not owned up that they missed a decimal place.

Connecting tax rates for PI goods to going market value is fine. However, your November 2011 base values on what to charge are out of whack.

It costs almost double the going market value of some goods to export them from a planet than you could get from the market. That's bloody bonkers. If we triple our price just to eek a profit from this extortion, next month you will 6x your base costs and compound the issue.

Please, CCP -- Own up to this mistake and find the decimal that needs to be shifted.

P2 goods in particular had their tax rate increased by almost 50x. And most are barely worth half that in Jita. It's kindergarten math here. We give you 2 ISK for every 1 ISK we can make (not including the time we spent to manage the colonies).
Teamosil
Good Time Family Band Solution
#2 - 2011-11-30 20:54:01 UTC  |  Edited by: Teamosil
The didn't miss a decimal. It's 17% of the base prices they set roughly based on the market value. For example, coolant, mechanical parts, consumer electronics, etc, all have a base price of 9,000 ISK. To send one unit of them through the customs office costs 9000 * .17 = 1530.

The reason the taxes shot up so much is that they adjusted the base price based on what they sell for in the market currently.
mnybag1
Ministry of War
Amarr Empire
#3 - 2011-11-30 20:57:03 UTC
Please read the other threads before making a new one -.-

The price increases are almost entirely due to them adjusting them to the average going rate for that teir. yes it might be that some of the non PI p2s are possibly going to cost more than theyre worth to export at first, but that is because you have been getting away with goverment-faulted tax fraud for a while. Most p2s havent been 3000 isk or whatever the old standard was, for more than 2 years.

They are not going to unfix it, it is now working as it was suppose to. Get over it and adapt or get stepped on.

Fly Safe o7
Dr Mercy
Imperial Academy
Amarr Empire
#4 - 2011-11-30 21:04:02 UTC
No, the problem is the "minerals I mined are free" idiots.

https://docs.google.com/spreadsheet/ccc?key=0AploM5dd7fuEdGNvSXRsUFlYekExMHdCbjRqczZOcEE&authkey=CK78g4kO&hl=en_GB&pli=1#gid=49

In my spreadsheet linked above, most P2 goods sell for 9000 or more per unit. Stop trying to sell the ones which are priced terribly. Serious, if you goods which are worth much less than the equivalent '100% tariff" then you are in the wrong market mate. I'd go so far as to say you'd make more isk selling the P1 items thant he P2 items and are in fact losing isk each time you combine them into a P2 item.

Make isk with PI: http://failheap-challenge.com/showthread.php?1207-What-to-do-PI-Processor-only-planets

Puissant
Tempora Heroica
#5 - 2011-11-30 21:15:00 UTC
So, PI products that don't sell well should no longer be produced, thereby increasing the demand and FURTHER raising the next month's averaged costs for all goods in a tier.

You honestly don't see how flawed that is? Costs will just continue to rise, as will your percentage tax. I don't care for hyperbole in arguments, but this is a run-away tax hike. It will never get better, nor stabilize. At best, all you do is shutdown HiSec PI. If that's what CCP wants to do, fine. But don't keep telling your players that PI is for everyone.

In my example of P2 goods, 9k as an average is way high for most P2 goods. You don't average all P2 goods together if you want to tax them. The demand for P2 goods varies greatly by good and by day even.


To CCP: I'm down with ISK sinks. I am. I believe we should have more. 17% tax averaged across the board kills production for half of the PI goods and discourages even more people from doing PI. The market was fine where it was before. We weren't creating ISK with PI, just moving it around.

You wanna tax non-ISK generating revenue sources? Tax roid mining. See what kind of response you get then.
Velicitia
XS Tech
#6 - 2011-11-30 21:19:28 UTC
so ... go to lowsec, poof a customs office, set up a POCO...

no tax.

if you're not in a corp that can handle doing that ... find a bigger group that can.

One of the bitter points of a good bittervet is the realisation that all those SP don't really do much, and that the newbie is having much more fun with what little he has. - Tippia

Jack Dant
The Gentlemen of Low Moral Fibre
#7 - 2011-11-30 21:22:49 UTC
Puissant wrote:
So, PI products that don't sell well should no longer be produced, thereby increasing the demand and FURTHER raising the next month's averaged costs for all goods in a tier.

You honestly don't see how flawed that is? Costs will just continue to rise, as will your percentage tax.

What makes you think the reference values will be updated monthly? Or at all?

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

Puissant
Tempora Heroica
#8 - 2011-11-30 21:23:54 UTC
Velicitia wrote:
so ... go to lowsec, poof a customs office, set up a POCO...

no tax.

if you're not in a corp that can handle doing that ... find a bigger group that can.


As I said already: "At best, all you do is shutdown HiSec PI. If that's what CCP wants to do, fine. But don't keep telling your players that PI is for everyone."


I really don't understand any EVE player who supports this kind of ISK sink. Hi-Sec PI has turned into a privilege to help CCP sink ISK out of the economy on a massive scale overnight. It's just silly to see people defend this practice. They already get their cut at the market. Apparently, it wasn't enough. 30% of the sale of a PI good worth 5k per up front, and then again when we trade the item to another player on the market. And if this increases the value of other PI goods in the same tier, then the rate will higher next month. Completely bonkers!
Puissant
Tempora Heroica
#9 - 2011-11-30 21:25:17 UTC
Jack Dant wrote:
What makes you think the reference values will be updated monthly? Or at all?


What would be the point of tying a tax index if they didn't? It's how insurance payouts are figured out now. They don't stay static.
Hundo Kay
Caldari Provisions
Caldari State
#10 - 2011-11-30 21:27:24 UTC  |  Edited by: Hundo Kay
Puissant wrote:
So, PI products that don't sell well should no longer be produced, thereby increasing the demand and FURTHER raising the next month's averaged costs for all goods in a tier.

You honestly don't see how flawed that is? Costs will just continue to rise, as will your percentage tax. I don't care for hyperbole in arguments, but this is a run-away tax hike. It will never get better, nor stabilize. At best, all you do is shutdown HiSec PI. If that's what CCP wants to do, fine. But don't keep telling your players that PI is for everyone.

In my example of P2 goods, 9k as an average is way high for most P2 goods. You don't average all P2 goods together if you want to tax them. The demand for P2 goods varies greatly by good and by day even.


To CCP: I'm down with ISK sinks. I am. I believe we should have more. 17% tax averaged across the board kills production for half of the PI goods and discourages even more people from doing PI. The market was fine where it was before. We weren't creating ISK with PI, just moving it around.

You wanna tax non-ISK generating revenue sources? Tax roid mining. See what kind of response you get then.


I love that you scream it broke in HS and use the Low Sec/Null Sec Wormhole tax rate to justify it.

Also, where are you getting your information regarding the reindexing of prices, since I have not seen anywhere, any schedule for reindexing. If they do reindex, then great if the tax goes higher.

If you don't like the flat tax, then call it a tariff by tier and deal with it that way. I prefer it be easy to understand. I live in W-space, I export a unit of P1, I pay 85 isk. Easy to figure in my spreadsheets.

And, yes, if you cannot produce, export and get to market a product at a profit THEN STOP MAKING IT. I don't see how that is such a hard concept for peopel to understand, but even RL business people don't get it, so why should all the basement dwellers get it.
Puissant
Tempora Heroica
#11 - 2011-11-30 21:29:48 UTC  |  Edited by: Puissant
@ Hundo. No one taxes your use of a POS to produce goods atm. CCP doesnt charge a tax to mine roids or moons.

You think it's somehow acceptable to take up to 30% of the low profit PI goods for the sake of an ISK Sink? Let's start taxing miners for each m3 of roid they mine. That should help, right?
Hundo Kay
Caldari Provisions
Caldari State
#12 - 2011-11-30 21:38:25 UTC
Puissant wrote:
@ Hundo. No one taxes your use of a POS to produce goods atm. CCP doesnt charge a tax to mine roids or moons.

You think it's somehow acceptable to take up to 30% of the low profit PI goods for the sake of an ISK Sink? Let's start taxing miners for each m3 of roid they mine. That should help, right?


You can change the subject if you like to discuss if I think it is acceptable, but that is not your post.

You post is that they broke it and made it unprofitable. I choose to disagree.

The discussion of if I think it is acceptable is really irrelevant.

And to choose mining as a analogy to PI is flawed. One is active and one is passive.

"Taxes" on mining include crystal usage, sales tax, contract tax, etc etc.

On a POS, the Fuel is heavily taxed, and in the end it if the POS owner that will eventually pay the tax, same as you do when you fill your car with fuel.

I wonder if people at Exxon sit around and cry when the Gov't raises taxes on Gas? Hell no, the price at the pump goes up and Exxon continues to make $$. Is it acceptable to charge 60-70% taxes on fuel? Doesn't matter, its reality.
Nova Valor
Nunc per Ludum
#13 - 2011-11-30 21:43:38 UTC
The issue is just not the tax, its also about if you willing to risk losing ur POCO's in low-sec. Where its possible to acctaully make a profit of P.I
Puissant
Tempora Heroica
#14 - 2011-11-30 21:45:27 UTC
Hundo Kay wrote:
[And to choose mining as a analogy to PI is flawed. One is active and one is passive.


Passive you say? I guess all of those colonies got built on their own. And the goods get moved around on their own. P4 goods must all come from one planet, cause certainly no one ships P2 & P3 goods around to make them. Colony management must be passive as well -- I guess we all just dreamed that we logged in on a semi-weekly basis to modify planets and production types.

The analogy isn't flawed. Neither Ore mining, nor PI produce ISK in EVE. Players trade ISK for the results of said actions. This level of ISK Sink on PI is one-sided in it's attempt to take ISK out of the economy. I don't see why we shouldn't start taxing roid mining in Empire space -- miners don't own those asteroids, the Factions do.
Puissant
Tempora Heroica
#15 - 2011-11-30 21:46:46 UTC
Nova Valor wrote:
The issue is just not the tax, its also about if you willing to risk losing ur POCO's in low-sec. Where its possible to acctaully make a profit of P.I


It's CCP stance that PI is profitable for all players. That even a newbie to EVE can get into PI on day one w/ no skills. Except now they couldn't make a profit out of it if they choose the wrong goods (stupid newbies, don't they know better? Good thing CCP was there to show them where they went wrong).
Jack Dant
The Gentlemen of Low Moral Fibre
#16 - 2011-11-30 21:49:42 UTC
Puissant wrote:
Jack Dant wrote:
What makes you think the reference values will be updated monthly? Or at all?


What would be the point of tying a tax index if they didn't? It's how insurance payouts are figured out now. They don't stay static.

Insurances were static for 7 years, and only made dynamic because they were breaking the game (insurance fraud).

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

Hundo Kay
Caldari Provisions
Caldari State
#17 - 2011-11-30 21:52:47 UTC
Puissant wrote:
Hundo Kay wrote:
[And to choose mining as a analogy to PI is flawed. One is active and one is passive.


Passive you say? I guess all of those colonies got built on their own. And the goods get moved around on their own. P4 goods must all come from one planet, cause certainly no one ships P2 & P3 goods around to make them. Colony management must be passive as well -- I guess we all just dreamed that we logged in on a semi-weekly basis to modify planets and production types.

The analogy isn't flawed. Neither Ore mining, nor PI produce ISK in EVE. Players trade ISK for the results of said actions. This level of ISK Sink on PI is one-sided in it's attempt to take ISK out of the economy. I don't see why we shouldn't start taxing roid mining in Empire space -- miners don't own those asteroids, the Factions do.


Do you planets continue to mine and work after you leave the game? If so its passive income.
Bernard Schuyler
Thundererz
#18 - 2011-11-30 21:58:23 UTC
Puissant wrote:
@ Hundo. No one taxes your use of a POS to produce goods atm. CCP doesnt charge a tax to mine roids or moons.

You think it's somehow acceptable to take up to 30% of the low profit PI goods for the sake of an ISK Sink? Let's start taxing miners for each m3 of roid they mine. That should help, right?


Actually Hisec POSes are taxed. You have to get those pieces of paper to add to your fuel.

Hisec PI will require more thought. Some things won't be worth making. But I suspect you can still make a profit (albeit small) on staples.

Hisec ISK generation has always been lesser for this sort of thing. You make up for it by relatively safe missions.
Linka Romanov
Imperial Academy
Amarr Empire
#19 - 2011-11-30 21:58:39 UTC
Puissant wrote:
Hundo Kay wrote:
[And to choose mining as a analogy to PI is flawed. One is active and one is passive.


Passive you say? I guess all of those colonies got built on their own. And the goods get moved around on their own. P4 goods must all come from one planet, cause certainly no one ships P2 & P3 goods around to make them. Colony management must be passive as well -- I guess we all just dreamed that we logged in on a semi-weekly basis to modify planets and production types.


PI prices will reach equilibrium eventually. If it's not profitable to manufacture at the current price, either idiots will sell below cost or the price will rise. If you are running some kind of ******** setup that exports at every phase and imports to a new planet, then you'll have to retool because all of a sudden taxes are something you have to take into account. Any other setup will not have its profitability impacted once prices stabilize at a level that bakes in the tax cost. This change is going to have two impacts on the economy, neither of which are big problems:

1) Prices of things that depend upon PI (POS fuel, and thus reaction products and T2 equipment) will rise marginally. In another thread, someone else calculated the impact a 20% across the board price increase in PI would have on monthly POS fuel prices and it was negligible.

2) A substantial new isk sink was added (because CONCORD and Interbus taxes remove isk from the economy), helping fight inflation - this is a sorely needed change given the number of mission running bots that are constantly injecting new isk into the economy from bounties and mission rewards.

Nova Valor
Nunc per Ludum
#20 - 2011-11-30 22:07:38 UTC  |  Edited by: Nova Valor
Cant wait to see the alliance and corp recruitement forum being flooded by alliances in null recruiting P.I corp's. Add to that if they remove the ice belts in hi-sec soon? lol wow....

Ice supply dead, P.I dead-ish. Think they can run their capships and POSes on shipwrecks and their big ego's? Twisted
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