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The significant increase in transaction friction will lead players to use direct trades or contracts to save on taxes. These methods are cumbersome. Asset management is already enough "work", increasing taxes will provide little incentive for this style of game play.

Large market participants will not take on the added risk of a citadel or the hassle/cost of reclaiming 100s of billions in assets when one gets popped.

It is unclear, if an increase in NPC taxes will net out to a larger isk sink if citadel taxes do not leave the system.

I see the potential for trade hub focused citadels to be a hot bed for great content. However, I feel that increasing NPC taxes is not the best method.

You are still risking your assets over some time period because it could be stuck in the teleportation delay for example. It's not a dry loss like a ship going boom but an opportunity cost I guess.

I think they made it because they kind of had painted themself into a corner long ago when they advertised that stuff in station would never really be lost even if you were to quit EVE for some time. You always technically had a way to gain access back to the stuff you had stored. If it all blew up, that's an incentive to come back to the game burning to ashes...

I guess you were off sick when they covered percentages at school.

Higher prices will not affect the profit margins, because the taxation level as a percentage will remain a constant proportion of the orders value, therefor the sell order value will have to greatly increase (50% with skills, 100% without skills) to allow for the same profit as a fixed value of isk.

Supply and demand kicks in at this point, with the sellers all selling at the same level. People will have buy at the price they dictate, or go without their ships and modules. Eventually buy orders will level out again at a level that allows buyers to make profit, likely still 90% of the market value (because greed) and the only way the sellers can make profit again is to once again artificially inflate the prices.

This system is known in economics as rampant inflation, it happened in Germany before World War Two. There the wheelbarrows weren't big enough to carry the money to buy a loaf of bread. It's happening all over Europe today (slower, but still happening) and it's basically caused by over-taxation and austerity.

The net result is a system where nothing is affordable, prosperity and free market capitalism is a thing of the past.

But in this case only for the plebs living in high-sec, which I'm sure doesn't bother you. However since the high-sec residents are the ones buying PLEX for real life cash to sell for isk, and therefor will need increasing quantities of ISK to fund the spiraling values of modules traded on the market. You'll suddenly find that, like the residents of Germany in the 1930's, all the isk you have now wont buy you a single PLEX.

EVE's economy is a finely balanced system with sustainable inflation and growth, if CCP start messing with that just so they can shoe-horn control of the high-sec markets into the hands of the null-sec alliances this whole house of cards will come tumbling down.

You do realize that if a large null-sec organisation was to try to get control over the market, they would have to allow anyone to dock in said citadel so stuff can be bought/sold in there which mean you could also play the market at the reduced tax rate as long as you are willing to put your assets in that citadel?

Even if GSF was to put a Citadel in HS, we could not control the market because the market need to be open to pretty much all to ever get inside that citadel. If we setup a market for blue only, we will control that part of the market but not the rest of it because we can't get the other sales done in our citadel where people can't dock and use said market.

At best, we will swim in tax money IF we provide the market service to enough people to capture at least a large aprt of the market with tax low enough to attract traders but high enough to generate a good income but in that case, you can play there too so we don't control it. You benefit from reduced tax just like our members.

Until you decide, as Goons have a history of doing, to be a jackass and remove my rights of access. And if i was undocked at the time, doing other things. All of my billions of isk in assets would be locked in a Citadel I cannot access and the only way I could ever get them back would be to blow up said Citadel.

But it's ok, as a high-sec station trader with characters in a C3 wormhole corp I'm sure I could destroy a Goonswarm controlled citadel... *sarcasm*.

Unlimited isk, total control of an otherwise collapsing market and unlimited rights to be a total $^*&. Null-sec alliances don't need that kind of power.

You mean this: I feel safe in Citadel city

Which allows for personal assets in a destroyed Citadel to be transfered to an NPC station or another Citadel of the controlling corperations choice. Which also requires a fee to allow me to recover them, aka I need to blow up a Citadel and then pay 10% of the market value to recover my stuff after a delay of 5 days.

That system? Yer commented on the need to blow up Citadels before...

Yeah, because a bunch of people who've never worked together before are a) going to know who each other are and b) going to have the resources to bring down a GSF Citadel.

Keep it real.

I've still not seen evidence that you can just deliver your stuff from a hostile Citadel. I thought asset safety was only triggered when the citadel was repackaged or destroyed.

Rock and a Hard Place?

P.s. We already have lower taxes, the benefit of not suffering from higher ones is what you mean. Some benefit.

Punishment without crime basically.

It's a punishment compared to the current level.

A 400% tax increase is punitive. There's no other word for it.