What effect did a tax cut have on weapon prices?
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by deadaccount
9 days ago the VAT for food and weapons was cut from 15% to 10%. What effect did that have on the market prices? I looked at the weapon price data from the eAustralian Bureau of Statistics and came up with this graph:
Some things to note:
- The times are all Sydney time, not eRep time.
- The red box is roughly where the tax cut occured.
- This is the pre-tax price, tax is added on top of this price.
It is interesting to note that the tax cut seems to have had no effect on the profit margin for suppliers, as the pre-tax price seems to have been relatively unchanged following the tax cut. Supply and demand seems to have a far greater effect on profit margins than government taxation. Raw materials also remain untaxed by the government.
It could therefore be argued that the taxation cut was a win for consumers as it delivered an immediate price reduction. This, of course, would require more analysis including information from the job market, something that I think is better to leave to the infinitely more capable Paul J Keating.
The current crash in prices is supposedly due to the admins switching their market bot off.
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What do you mean by "It could therefore be argued that the taxation cut was a win for consumers as it delivered an immediate price reduction."
The data above shows no indication of that.
The data above is pre-tax prices. Since the taxation rate was reduced by 5%, and the pre-tax price did not change, it can be assumed that this means that there was a reduction in the post-tax price.
It's a win for consumers but it's a pain for suppliers.
Mind you, the eRep market bot is no longer active.
Understood. V+S now 🙂
The 'Market bot'? Is this an IRC bot which collects market data and reports it? Is the eRep API still online?
I assume (Because of the profound effect on the market) this means there was some automatic trading going on?
The market bot, from what I can gather, is a bot run by the admins that automatically buys from the market, acting as a price floor.
The eRep API is still online. The eABS continues to get data every hour.
The absence of the bot, has had the greatest effect on prices....by far.
Changing the tax does not effect the price of Q1 - Q4 because only bot buys them.
The numbers will be back up after today.