Tax waste could be one of problem which decrease your income in Victoria 3. This problem mean that you don’t have enough Bureaucracy and to solve it you need to build more government administration or change they production methods. In mine today article I will look on more detail about tax waste.
Tax waste by source of problem
In Victoria 3 are two “tax waste” problems which you should have. First is that you doesn’t have enough taxation capacity on specific states. Second is that you don’t have enough Bureaucracy.
In both cases you need to build more government administration as I mention bellow multiple times.
The real question is “where to build them”. In first case you need to build in state where you have problems with taxation capacity and in second problem you could build everywhere
Solving tax waste problem
To solve tax waste problem you need to build more government administration buildings. Or alternatively you could change production methods in government administration buildings.
If you don’t have enough paper you will need to invest in this industry because to change production methods you will need more paper. Best for early phases is having standardized filing system on all buildings…
… and when just changing the production method won’t be enough, you need to start building more government buildings. But build with discretion. If you have significantly more than needed you will have problems too because a lot of your people doesn’t work and you won’t make the most of the opportunities.
Why is global tax waste problem?
Tax waste is primary with not enough Bureaucracy when you have less than 0 then you won’t effectively collect taxes which will lead to reduction in income. Which should be start of death spiral. You will get less income so you won’t be able to build more buildings, you will be in debt and in the process, it could end in bankruptcy.
In my case you could see that I have bureaucracy -883 and my unrealized taxes are 34,6k (around 18% from taxes) which is mine entire negative income. So solving this problem in this game can ensure that my state will balance the economy and I will earn a lot of money.
Good question could be wtf how I got into this deficit? and if you look into your bureaucracy tab you will get all informations which you need to fix it. You should see that income of bureaucracy come from government administration and usage came to…
Incorporated states
….and most of usage bureaucracy came to “incorporated states”. This are states which has everything ok and in which are working all institutions. So more people you will have in your states more Bureaucracy you need. Often it can happen that a deficit arises just with a change in the “level of an institution” that moves you to this state.
But on the other hand, you want to have the maximum number of states that are incorporated because states which are unincorporated have these problems which should lead to problems.
Trade routes
… second important problem which could cause tax deficits are trade routes. Every trade route cost some bureaucracy so more you trade then lest bureaucracy you have. But there are solution you could invite other countries to custom union and after that you will have one big market. Or you could make trade agreement and your trade routes between countries doesn’t need bureaucracy.
