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inflation due to taxation

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Webmaster453
Aug Member 2021

Webmaster453

Posts: 2,727 Adamant Posts by user Forum Profile RuneMetrics Profile
There will be less coins in circulation because this tax effects everyone who uses the G.E. and not just PVMers like before.

Jagex set the tax higher than what they calculated what they needed to cover the old death mechanics.

You're as inflation illiterate as the TC.

Sellers will also have less coins and also they will feel that smaller offers are a fair trade.

The 2% is to sellers. Deflation will probably make everything worth less.

10-Jan-2023 00:20:03

A  Cole
Nov Member 2003

A  Cole

Posts: 14,761 Opal Posts by user Forum Profile RuneMetrics Profile
Webmaster453 said :
There will be less coins in circulation because this tax effects everyone who uses the G.E. and not just PVMers like before. As I said, the 2% tax is predicted to remove 86.14B daily.

The pre-update deficit was 88.1B daily.

Post-update, this means that the deficit is still +2B daily coming into the game.

However, how do you know that this GP is going into circulation? How do you know player's aren't just storing it away in their accounts and never spending it?

Circulation is not the same as GP creation/destuction.


~A~

10-Jan-2023 00:39:28

Webmaster453
Aug Member 2021

Webmaster453

Posts: 2,727 Adamant Posts by user Forum Profile RuneMetrics Profile
A  Cole said :
Webmaster453 said :
There will be less coins in circulation because this tax effects everyone who uses the G.E. and not just PVMers like before. As I said, the 2% tax is predicted to remove 86.14B daily.

The pre-update deficit was 88.1B daily.

Post-update, this means that the deficit is still +2B daily coming into the game.

However, how do you know that this GP is going into circulation? How do you know player's aren't just storing it away in their accounts and never spending it?

Circulation is not the same as GP creation/destuction.


~A~ Wrong.

69,832,758,793 is the death deficit.

6,021,212,052 is the bond tax to make bonds tradable. Bonds are affected by the 2% G.E. tax.

From the news post
"The 1.5% estimate would theoretically cover the death cost deficit, but we aimed for 2% to have a buffer."

Which is .5% more than needed.

10-Jan-2023 01:31:17

motomanmike

motomanmike

Posts: 1 Bronze Posts by user Forum Profile RuneMetrics Profile
Basic economics is that Tax increases cost to the buyer and reduces profit for the seller. The cost is essentially split between both parties (in basic economics). Since the buyer has to pay more, they collectively demand less and since the seller makes less, they collectively produce less.

In a real economy tax money is spent by the government which can cause inflation. This collected tax isn't being spent, it's being removed.

Also there's a thing called the substitution affect. Just because prices on select items rise, does not mean there is overall inflation....E.g, If sail fish get expensive, I start using sharks instead so just because we see sailfish go up doesn't mean there is overall inflation.

Lastly, they set the tax to basically offset the changes due to death cost changes with a little cushion, so really any affect we see in the near term at least will be a behavioral/speculative response which will dispute over time as everyone adjusts to the new normal.

10-Jan-2023 03:20:45

DarthChosen
Apr Member 2017

DarthChosen

Posts: 635 Steel Posts by user Forum Profile RuneMetrics Profile
the tax will obviously effect some buying and selling for a bit but if you look at osrs things even'd out. just like all updates things will be different for a short time and then players will get used to it. flipping is still possible after this update. pssst....we know who you are. Hail Sithis!

10-Jan-2023 14:09:34

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
RS3 players don't care about farming and spending gp as much as other games. Most players just leave billions of gp and alchs on each boss and dungeon chest.

With no change in person-to-person trading activities since the update yesterday, it is quite possible we will lose significant amount of gp (perhaps 30 bil at least) daily due to the difference between the 2% GE tax and the substantially smaller loss in Death Cost.

Net deficit of daily gp has more tendency to lead to deflation, but it is not a given. At this moment, the very clear point is we will see a decently smaller "beta" between daily gp added and removed.

10-Jan-2023 16:24:40

Tenebri
Jan Member 2015

Tenebri

Posts: 39,414 Sapphire Posts by user Forum Profile RuneMetrics Profile
Dilbert2001 said :
Pro Mage said :
What is the need of adding a tax to everything that you buy or sell?

I get that devs want less money in this game but do you really have to take away part of the fun in buying/selling/flipping?

Death cost was already very low when players are smart enough to use Ring of Death.
Or switch to Ring of Death when you know you are about to die.
I know not every death is expected but in alot of cases you can.

Some people don't see the need for Ring of Death as there are better 'dps' options but that's high risk high reward.

Please think of other ways to drain the money in-game...

-Pro Mage-

You can still flip outside the GE without paying tax. Plenty of players are still using these ROSF for an example.

The Ring of Death is actually still very useful, especially when we know we are just about a hit or so from killing the target before we die.

You can still flip in the ge too.

As with osrs after the gr tax the margins increased and made no differencd in flipping income. Once things settle the amount you flipped an item before will be the same

But yeah you are right people can avoid ge if they want and sell outside of it if they dont want the ge tax.
200m all RS3 on 7/3/19
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OSRS 2277/2277 Untrim slayer cape
Hail Satan, He loves for who you are.

10-Jan-2023 17:06:33

Dilbert2001
Jun Member 2006

Dilbert2001

Posts: 30,311 Sapphire Posts by user Forum Profile RuneMetrics Profile
Tenebri said :
Dilbert2001 said :
Pro Mage said :
What is the need of adding a tax to everything that you buy or sell?

I get that devs want less money in this game but do you really have to take away part of the fun in buying/selling/flipping?

Death cost was already very low when players are smart enough to use Ring of Death.
Or switch to Ring of Death when you know you are about to die.
I know not every death is expected but in alot of cases you can.

Some people don't see the need for Ring of Death as there are better 'dps' options but that's high risk high reward.

Please think of other ways to drain the money in-game...

-Pro Mage-

You can still flip outside the GE without paying tax. Plenty of players are still using these ROSF for an example.

The Ring of Death is actually still very useful, especially when we know we are just about a hit or so from killing the target before we die.

You can still flip in the ge too.

As with osrs after the gr tax the margins increased and made no differencd in flipping income. Once things settle the amount you flipped an item before will be the same

But yeah you are right people can avoid ge if they want and sell outside of it if they dont want the ge tax.

Of course they can flip in the GE too but they will have to pay more tax, and it will be even a better thing for draining gp out of the RS3 economy than flipping outside the GE.

10-Jan-2023 17:16:42

Snowbuddy
Jun Member 2004

Snowbuddy

Posts: 1,420 Mithril Posts by user Forum Profile RuneMetrics Profile
Anyone who brings up DEATH COSTS in a thread about GE TAXATION

is actively stupid

and confused.

and stupid.
,•°•¸.....**..*^**,*********^-^
'.,**;***.....
LET IT*******(o..o)
......'.,¸¸,‹^º•,¸ SNOW***.( ' v' )o

10-Jan-2023 17:33:00

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