Why is there a tax...
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More SDs market manipulation
It's not like they invented it or something. There is evidence of 10% taxes going back to games like Final Fantasy XI in 2002 or 2003
Guild Wars 2 apparently had a 5% listing fee and a 10% sales tax.
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Let's do it the American way have 5 different tax brackets and then a thousand different type of tax write-offs.
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To control inflation, players continuously earn free stubs by completing programs, playing the game, working the market etc. without a stub sink, prices for top-tier cards would skyrocket uncontrollably.
Applies economic principles opposite of their reality. The tax inflates prices because it makes it unprofitable to sell cards at lower prices. Here is the reality of it.
You have a card that has a minimum price established by SDS (another economic falsehood in the market) of 20 stubs. If you try to sell the card for 21 stubs, then the ten percent tax takes away 2 stubs, making the net profit a loss of two stubs -- the seller receives just 18 stubs, vice 20. Since there is no actual value in stubs, the gimmick is nothing more than an artificial price inflator. You have to sell the card at 22 stubs just to break even on the minimum price.
The second falsity in your statement is that increased stub supply inflates prices. This is not true. Prices are set by supply of cards measured against demand for cards. There could be billions of stubs in the community market, but if there is no demand for cards, they they won't sell. You see, supply and demand factor the material supply and the demand for that supply.
The reality is that taxes exist to fund a government. Since the stubs have no real value, then the existence of a tax is a false concept, devoid of any actual need. In real life, taxes inflate prices since the minimum return a business must earn to remain in business exists with or without the tax. So, in both real life and the fake SDS community market the tax inflates prices.
Thank you very much for this.
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"Why doesn't the market in this game have no taxes?" Some of yall don't understand economics it seems.
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To control inflation, players continuously earn free stubs by completing programs, playing the game, working the market etc. without a stub sink, prices for top-tier cards would skyrocket uncontrollably.
Applies economic principles opposite of their reality. The tax inflates prices because it makes it unprofitable to sell cards at lower prices. Here is the reality of it.
You have a card that has a minimum price established by SDS (another economic falsehood in the market) of 20 stubs. If you try to sell the card for 21 stubs, then the ten percent tax takes away 2 stubs, making the net profit a loss of two stubs -- the seller receives just 18 stubs, vice 20. Since there is no actual value in stubs, the gimmick is nothing more than an artificial price inflator. You have to sell the card at 22 stubs just to break even on the minimum price.
The second falsity in your statement is that increased stub supply inflates prices. This is not true. Prices are set by supply of cards measured against demand for cards. There could be billions of stubs in the community market, but if there is no demand for cards, they they won't sell. You see, supply and demand factor the material supply and the demand for that supply.
The reality is that taxes exist to fund a government. Since the stubs have no real value, then the existence of a tax is a false concept, devoid of any actual need. In real life, taxes inflate prices since the minimum return a business must earn to remain in business exists with or without the tax. So, in both real life and the fake SDS community market the tax inflates prices.
Thank you very much for this.
Please keep in mind that what he said is not the actual truth, as it pertains to this game.
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@Pergo_MLBTS How so?
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If there were no tax over a HUGE amount of time every card would cost the maximum. That's why. That's the simplest answer anyway.
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If there were no tax over a HUGE amount of time every card would cost the maximum. That's why. That's the simplest answer anyway.
Again, that defies economic realities. A tax reduces the profit at a given sales point. Therefore, to recoup the profit deemed necessary by the seller, the price must be increased to cover the tax AND the minimum profit needed to justify the operation.
The "tax," that again serves no useful purpose since the received "tax" does not have any intrinsic value to SDS, nor serve any useful purpose, merely inflates the sales price in stubs. My previous reply provided the details.
Taxes inflate sell prices, they do not deflate them.
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@PriorFir4383355_XBL you really don't think the tax is there simply to take stubs out of the economy?
I'd also add that your economic argument doesn't quite work when the seller has a quick sell option.
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@PriorFir4383355_XBL you really don't think the tax is there simply to take stubs out of the economy?
I'd also add that your economic argument doesn't quite work when the seller has a quick sell option.
It works precisely well with the quick sell. The quick sell establishes an effective price floor in stubs. If the goal of selling a card or equipment item is to "raise stubs," then it makes zero sense to list an item on the community market for a price that would yield fewer stubs than one could receive via the quick sell.
Therefore, the quick sell works same as the ludicrous tax in that they both inflate prices. And again, the tax provides no actual benefit since the stubs are worthless pseudo currency with only one limited purpose and the tax deducted provides no benefit that taxes paid to governments can and should represent.
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It makes zero sense yet happens all of the time. There are countless cards listed with a sell now that gets taxed and ends with the seller receiving fewer stubs than had they quick sold.
Do you think the price for JRoll would be lower if there were no tax?
