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GE Tax on high value trades.

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Matuhar
Feb Member 2011

Matuhar

Posts: 644 Steel Posts by user Forum Profile RuneMetrics Profile
Today's Max Cash increase is an amazing and a very needed update, but it just doesn't make sense to not have a tax limit. Wasting over a billion coins for buying a partyhat just feels wrong and the majority of cash going out of the game due to tax is lower-valued frequently traded items anyway. Tax this large sorta defeats the purpose of even having having high value trades over the Grand Exchange in the first place.

12-Jun-2023 16:59:14

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Do buyers pay tax to buy a partyhat on GE following today's max cash update?

I am not going to buy a partyhat, but I also don't see where on the announcement buyers now pay GE tax now. To my knowledge, GE tax is on the sellers. Buyers don't have to pay anything extra.

12-Jun-2023 17:04:25

Lord Of Dn
Dec Member 2023

Lord Of Dn

Posts: 77 Iron Posts by user Forum Profile RuneMetrics Profile
No support. If you have enough money to buy/sell and flip party hats and merch, you deserve to pay tax. I also support them eventually making discontinued items non-tradable through peer to peer trade and only through the G.E. so tax evasion wouldn't be a thing.

12-Jun-2023 17:34:43 - Last edited on 12-Jun-2023 17:35:22 by Lord Of Dn

Horsechaser
Feb Member 2010

Horsechaser

Posts: 4,200 Adamant Posts by user Forum Profile RuneMetrics Profile
As usual, Dilberts analysis gets it wrong. Buyers do indeed pay the tax. The price quoted to buyers is the price with tax included. The price paid to the seller, is less than the price quoted to the buyer, so clearly it is the buyer paying the tax.

As is the case with governments, its always soak the rich. The tax was and still is a bad idea and should be eliminated. Its unfair to both buyer and seller, particularly because the seller sees what he/she/(it?) COULD have received but doesn't, whereas the buyer pays an inflated price that includes the "tax."

12-Jun-2023 18:11:58

Matuhar
Feb Member 2011

Matuhar

Posts: 644 Steel Posts by user Forum Profile RuneMetrics Profile
Yeah, tax indirectly costs buyers as well. I'm guessing it does stop merching, but just throwing away a billion + still seems... off. Since OSRS has a limit of 5m, so could the main game. Or at least make the tax fall to 1% or 0.5% after say a 100m trade to still prevent merching to some extend.

12-Jun-2023 18:59:56

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
As usual, Dilberts analysis gets it wrong. Buyers do indeed pay the tax. The price quoted to buyers is the price with tax included. The price paid to the seller, is less than the price quoted to the buyer, so clearly it is the buyer paying the tax.

As is the case with governments, its always soak the rich. The tax was and still is a bad idea and should be eliminated. Its unfair to both buyer and seller, particularly because the seller sees what he/she/(it?) COULD have received but doesn't, whereas the buyer pays an inflated price that includes the "tax."

As usual you are wrong! Look at the post below yours and above mine. OP nows wrote sellers paid the tax, not buyers.

12-Jun-2023 19:26:04

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
Yeah, tax indirectly costs buyers as well. I'm guessing it does stop merching, but just throwing away a billion + still seems... off. Since OSRS has a limit of 5m, so could the main game. Or at least make the tax fall to 1% or 0.5% after say a 100m trade to still prevent merching to some extend.

Sellers pay 2% GE tax in RS3 and all taxed gp is removed from the game. OSRS only taxed sellers for 1% on GE and they spent some of the taxes paid by the poors to bail out high level gear in a Janga Economy. Robbing the poors to pay the rich isn't what the RS3 GE tax is designed for.

Different games with different purposes of GE tax. The reason for GE tax in RS3 is to balance out the effect of reduction of Death Tax. The reason for GE tax in OSRS is to rob the grass root players to inflate the inevitably falling prices of high value combat equipment. Why don't you say OSRS should do what RS3 do on GE tax rather?

12-Jun-2023 19:28:38 - Last edited on 12-Jun-2023 19:30:36 by Dilbert2001

Horsechaser
Feb Member 2010

Horsechaser

Posts: 4,200 Adamant Posts by user Forum Profile RuneMetrics Profile
You are flat out wrong DIlbert. The buyer is quoted a price, hiding the fact that the seller is getting 2% less than the quoted price. In essence the 2% is paid with the buyer's gp, not the seller's. The seller just receives 2% less than the price quoted to the buyer. What adds insult to injury is that the seller has to see what he should have received as well as the price the buyer pays.

We are well aware of the purpose of the tax, which isnt the issue of OP. Its about limiting the tax on higher value sales and whether or not its fair.

Frankly, its NOT fair. Its just a cash grab on the part of jagex. If it weren't for the fact that gp has actual real monetary value in form of being able to purchase bonds and membership and other bond related items, no one would care, but in this case the tax has actual monetary value.

12-Jun-2023 20:02:51

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
^^
The sellers have no obligations to set their prices of the items they are selling higher by 2%. They can even set it lower if they prefer to. If the buyers don't like the price, they can set their buy offer at a lower price anyway.

This is very fair to the buyers, regardless of OSRS and RS3 as OP trying to compare.

12-Jun-2023 20:08:00

Horsechaser
Feb Member 2010

Horsechaser

Posts: 4,200 Adamant Posts by user Forum Profile RuneMetrics Profile
You seem very confused Dilbert. OP said nothing about comparing osrs or rs3. He only stated that taxes on extremely high value items was self defeating and that most cash leaves the game through the voluminous low value purchases.

He is correct about that. Many players would balk at a 1b tax buying a party hat through the GE as a waste as in OPs example.

Now I can already see your argument that well p2p trades avoids the tax. Yes, but given the number of scammers in the game, that jagex seems to do nothing about, high value p2p trades are problematic.

I dont know how many times I tried to sell BOLG pieces after the zammy boss was introduced p2p, only to have every trade offer made above the max cash limit tried to scam me.

Having the ge max cash limit raised can make trades of very high value items a lot safer for both buyer and selling, but the huge tax imposed can restrict these high value GE trades.

A limit on the tax for very high value items is a reasonable suggestion as posed by OP.

12-Jun-2023 20:22:08 - Last edited on 12-Jun-2023 20:23:17 by Horsechaser

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