Debt Crises and Tax Evasions


#1

I’ve noticed something peculiar. When I lower taxes tax evasion goes down, but then it levels off and maybe even rises until I lower taxes again. If I lower taxes in moderate increments rather than a large deduction, it stays on a downwards slope. I can vaguely see the logic behind this, as people get complacent with lower taxes… But it does make tax evasion very annoying to get rid of as it means either putting everything on hold while I spend my political capital on incremental tax cuts or completely abolishing corporation tax and nearly doing the same to income tax. It seems unrealistic to require dividing my income tax revenue by four to get rid of tax evasion.

Also, the same behavior appears to apply to Debt Crises. This, however, makes no sense. If my budget surplus remains essentially the same, then shouldn’t the decline of the debt crisis remain the same? The debt is getting payed off at the same rate as it was two turns ago, and if there is no indication this is changing the debt crisis shouldn’t level off or even rise even though the debt is being payed off!