5% tax on Mp? (A)

[Bubblehead0987654321]

Is there going to be an added 2% tax fee on to the 3% there already was? When are they planning on doing so? I know it's from the gold generators but, could this actually hurt this all even more?

I have 2 theory's:

1st. Since there will be a 5% fee now, people will still keep prices high, even higher in order to make a profit, since they r losing more gold now. Also, most people will just do the MP instead of going to forums and set up shops or search around since that's what they mainly know or don't want to deal with searching, so, more gold will still be flushed in to the inflation making the deflation slow.

2nd. People will go to the forums and setup shop or search for people selling/buying items so there is no tax fee, but, if people start getting outrageous on prices than what do the people do? I mean, the forum will be submerged with topics and bumping and all that other grand stuff. It will hurt and help many other Gaian's. Hint: If this does happen, get a bump shop around, smart thing to do.

Any other suggestions u people have or am i just talking crazy? I'll start going around Towns and Towns 2 and say "Gaia's end is near!".  

[Shujitsun]

Yes, there is going to be an extra 2% on top of the current 3%. I'm not quite sure when it's happening, but I believe it will be effective quite soon, if it isn't already in effect.

As for how this will affect the economy, I personally think it was a good decision. Prices in forums such as the exchange won't really be affected by the change, as the prices of items being sold there are usually at least 10% under MP prices in the first place. People only sell things on there when they really need the gold, and those who usually list their items in the MP are still going to want that extra 5% they miss out on from selling in the exchange. Even if MP prices were to rise as a result, the money going back to gaia from the new 5% tax will sink more gold out of circulation, therefore leading to deflation faster.

Also, sellers and buyers are connected. Even if certain sellers were to decide that they wanted to bring up the price of their items in the MP, it doesn't mean people are willing to spend more for it. I'm sure other sellers wouldn't mind losing an extra 2% either if it meant having their items as the cheapest listing in the MP, and therefore a quicker sale, which would also nullify the effect of the sellers that are tempted to raise prices.

Then again, gaians with less gold will be hit hard by the new tax, but at least this is a start to controlling the inflation that's gone out of control due to their gold generators.

Of course it's up for debate, but I think personally think it was the right decision, even if I and other sellers are going to lose more gold from it. Gaia needs to control the inflation before it begins driving more members away than it already has.  

[Bubblehead0987654321]

Shujitsun

Yes, there is going to be an extra 2% on top of the current 3%. I'm not quite sure when it's happening, but I believe it will be effective quite soon, if it isn't already in effect.

As for how this will affect the economy, I personally think it was a good decision. Prices in forums such as the exchange won't really be affected by the change, as the prices of items being sold there are usually at least 10% under MP prices in the first place. People only sell things on there when they really need the gold, and those who usually list their items in the MP are still going to want that extra 5% they miss out on from selling in the exchange. Even if MP prices were to rise as a result, the money going back to gaia from the new 5% tax will sink more gold out of circulation, therefore leading to deflation faster.

Also, sellers and buyers are connected. Even if certain sellers were to decide that they wanted to bring up the price of their items in the MP, it doesn't mean people are willing to spend more for it. I'm sure other sellers wouldn't mind losing an extra 2% either if it meant having their items as the cheapest listing in the MP, and therefore a quicker sale, which would also nullify the effect of the sellers that are tempted to raise prices.

Then again, gaians with less gold will be hit hard by the new tax, but at least this is a start to controlling the inflation that's gone out of control due to their gold generators.

Of course it's up for debate, but I think personally think it was the right decision, even if I and other sellers are going to lose more gold from it. Gaia needs to control the inflation before it begins driving more members away than it already has.

Thanks for your opinion! I agree with u but I was thinking on the worst side. Never know... this is Gaia.  

[Timmys Vixen]

I'm new so I've only done the marketplace a couple of times, but it seems like they are taking an awful lot of gold out of our profits and if it just went up I don't see how that can do anything except hurt us because people will just up their prices to make up the difference.  

[Bubblehead0987654321]

Timmys Vixen

I'm new so I've only done the marketplace a couple of times, but it seems like they are taking an awful lot of gold out of our profits and if it just went up I don't see how that can do anything except hurt us because people will just up their prices to make up the difference.

Well, it used to be 2% in the very beginning, then 3%. That was ok but now with 5%, it is really taking a chunk out. In all actuality, it seems that many items r losing value, example, charms. When one charm was worth a billion now is worth only 400 mill. It seems it has taken a BIG chunk to deflation. It may be easier for some people to go and sell their items in the forum section, but there u need to keep it updated and more maintenance kept then a MP store. It is all very buggy but for now, we will have to live with it. IDK y it took forever to be set in for the 5% tax either. It was suppose to be put in the 8th but was late to be finalized.  

[Timmys Vixen]

Bubblehead0987654321

Timmys Vixen

I'm new so I've only done the marketplace a couple of times, but it seems like they are taking an awful lot of gold out of our profits and if it just went up I don't see how that can do anything except hurt us because people will just up their prices to make up the difference.

Well, it used to be 2% in the very beginning, then 3%. That was ok but now with 5%, it is really taking a chunk out. In all actuality, it seems that many items r losing value, example, charms. When one charm was worth a billion now is worth only 400 mill. It seems it has taken a BIG chunk to deflation. It may be easier for some people to go and sell their items in the forum section, but there u need to keep it updated and more maintenance kept then a MP store. It is all very buggy but for now, we will have to live with it. IDK y it took forever to be set in for the 5% tax either. It was suppose to be put in the 8th but was late to be finalized.

It seems like 2% would be way more reasonable than the current 5%. And even with the few days I've been on cruising the marketplace I have noticed things going down in value. I'm not sure if that's a good thing or a bad thing though, I'm still too new at this.  

[Ebania]

Decreasing prices is usually a good thing. It makes items more accessible to a greater number of people. smile

Timmys Vixen

Bubblehead0987654321

Timmys Vixen

I'm new so I've only done the marketplace a couple of times, but it seems like they are taking an awful lot of gold out of our profits and if it just went up I don't see how that can do anything except hurt us because people will just up their prices to make up the difference.

Well, it used to be 2% in the very beginning, then 3%. That was ok but now with 5%, it is really taking a chunk out. In all actuality, it seems that many items r losing value, example, charms. When one charm was worth a billion now is worth only 400 mill. It seems it has taken a BIG chunk to deflation. It may be easier for some people to go and sell their items in the forum section, but there u need to keep it updated and more maintenance kept then a MP store. It is all very buggy but for now, we will have to live with it. IDK y it took forever to be set in for the 5% tax either. It was suppose to be put in the 8th but was late to be finalized.

It seems like 2% would be way more reasonable than the current 5%. And even with the few days I've been on cruising the marketplace I have noticed things going down in value. I'm not sure if that's a good thing or a bad thing though, I'm still too new at this.

 

[Timmys Vixen]

Even if it means that they're taking more money from us in taxes?

Ebania

Decreasing prices is usually a good thing. It makes items more accessible to a greater number of people. smile

Timmys Vixen

Bubblehead0987654321

Timmys Vixen

I'm new so I've only done the marketplace a couple of times, but it seems like they are taking an awful lot of gold out of our profits and if it just went up I don't see how that can do anything except hurt us because people will just up their prices to make up the difference.

Well, it used to be 2% in the very beginning, then 3%. That was ok but now with 5%, it is really taking a chunk out. In all actuality, it seems that many items r losing value, example, charms. When one charm was worth a billion now is worth only 400 mill. It seems it has taken a BIG chunk to deflation. It may be easier for some people to go and sell their items in the forum section, but there u need to keep it updated and more maintenance kept then a MP store. It is all very buggy but for now, we will have to live with it. IDK y it took forever to be set in for the 5% tax either. It was suppose to be put in the 8th but was late to be finalized.

It seems like 2% would be way more reasonable than the current 5%. And even with the few days I've been on cruising the marketplace I have noticed things going down in value. I'm not sure if that's a good thing or a bad thing though, I'm still too new at this.

 

[Ebania]

Yes. The Marketplace always finds a place to even itself out (meaning, the 5% tax won't hurt as badly in the future as it does now; same was true when the 2% tax was first implemented years ago), and the tax is for the good of quite literally everyone. For the first time in ages, the Marketplace seems to be somewhat stable -- not fully repaired, but at least stable.

Timmys Vixen

Even if it means that they're taking more money from us in taxes?

 

[Timmys Vixen]

*shrugs* I guess I just don't know enough about economics. Should have paid better attention in class! LOL

Ebania

Yes. The Marketplace always finds a place to even itself out (meaning, the 5% tax won't hurt as badly in the future as it does now; same was true when the 2% tax was first implemented years ago), and the tax is for the good of quite literally everyone. For the first time in ages, the Marketplace seems to be somewhat stable -- not fully repaired, but at least stable.

Timmys Vixen

Even if it means that they're taking more money from us in taxes?

 

[Ebania]

Haha, that's ok! I'm not an economist either. But check out this awesome comic which explains some economic principles in ways that those of us without economics degrees from Harvard can understand, lol.

Timmys Vixen

*shrugs* I guess I just don't know enough about economics. Should have paid better attention in class! LOL

 

[Bubblehead0987654321]

It's good for some but bad for others. If they bought and item and were going to make big bucks for it, but all of a sudden, deflation, well, they r now getting a decrease in profit. So, it depends on your gold management really. Also, n the forum shops, it is now more difficult then ever I would say to sell because there are many other people selling the same stuff and then that hurts your business. It really does depend on your gold management increase.