Most changes from Democracy 3 are very much on point, but one of those that I think should be reconsidered is the massive nerfing of sales tax. Currently its significantly less important than income tax and way less significant in general. In real world in the countries where sales tax is high enough it makes for the greatest source of income for state budgets, vastly outranking income tax and all the other taxes. At least that’s the case in most of Europe. Currently in D4 even rising sales tax very high won’t make it as important as carbon and income taxes. I think it would greatly benefit realism and immersion if sales tax was strenghtened in the coming patches.
I find it strange that you mention carbon tax, usually that one produces nothing for me. Not metaphorically, actually zero dollars, euros, whatever. Same with petrol tax.
If I remember correctly, their incomes are based on the production/use of what they tax (CO2 Emissions and Oil Demand).
So if your CO2 Emissions are at 0, then you can have the highest tax rate ever, you’ll have 0 income because there’s nothing to tax (as is the case with most taxes).
Can you name me a single country (excluding city states like Monaco) where sales taxes actually raise more revenue than income taxes?
Looking at averages for the OECD (And Germany as an example of a major European economy) your claim that sales taxes are able to be a larger source of government income doesn’t seem based in reality.
Norway generates more revenue from VAT (321 bn. kr) than income tax (257 bn. kr). Payroll and social security taxes (358 bn. kr) generate a bit more revenue than sales tax though.
It’s the case in France: Total value-added tax revenue in France from 2007 to 2018 and Total revenue from income taxes in France from 2006 to 2017
Edit: There seem to be a problem wit how the first link behave, so it’s in french, sorry about that.