“When rich people save their money in banks[,] it makes the government more broke. The government is already in a huge debt. If a bank doesn’t agree to pay taxes they just shouldn’t operate it. I feel like every single corporate account should be actively monitored and taxed.
-Arch D Lit
Banks have been in DC for a while now, and while they do provide multiple perks for both personal and corporate use, many are finding that they can also be used for balance tax evasion.
But what exactly is a balance tax? Balance tax is basically how much the government takes from you based on your in-game player balance. For most players, that is fine. The only players who are taxed are the ones with more than $100,000.00 (One hundred thousand). Those who are taxed have a rate depending on which tax bracket they are in. Here is the tax rate for the players of DC:
| Bracket | Taxation Rate (% per week) |
|---|---|
| $0.00 to $49,999.99 | 0% |
| $50,000 to $99,999.99 | 1% |
| $100,000.00 to $199,999.99 | 1.2% |
| $200,000.00 to $299,999.99 | 1.4% |
| $300,000.00 to $499,999.99 | 2% |
| $500,000+ | 3% |
Now, while most players don’t have to worry, the rich do. And they have to get creative to preserve their wealth.
This is where banks come in. As of right now, banks are only charged a Financial Institution Tax (10%) and a Financial Institution Depositor Insurance Tax (10%). Totaling 20% of bank profits. (But the Department of Commerce may decide to grant or deny exemptions to non-profits and/or financial institutions on a case-by-case basis.)
While banks are charged tax for profits, they are not taxed for deposits/money they hold. This means that players can simply go to a bank, open an account, pay a possible (periodic) fee, deposit however much money needed, and bypass balance tax; and the periodic fee that they pay? It is most likely less than what they would have lost to the balance tax.
This also means that more and more money will be taken out of the economy, and less money for the players. Furthermore, it means that the government will have less balance to tax from the rich.
And there is another set of questions of “Who will pay the tax?” “Will the banks pay the tax?” “Will the depositors pay?” “Will it be split?” As of right now, it appears the best answer is that while banks will be the ones who are charged, the money will be passed on to the players who deposited the money.
Now, what exactly are the pros and cons of taxing banks for the deposits they hold?
| Pros | Cons |
| Less money sitting in banks and not moving in the economy | Less business or profit for banks and/or other financial institutions |
| More revenue to the government, allowing the opportunity to fund more things | Banks might charge more and offer less to all players, not just the rich |
| Possibility that other taxes will be lowered | Might prevent some businesses from growing or expanding |
| Prevents the rich from evading balance tax | Companies might start charging more to cover losses to the tax |
These could just be the tip of the iceberg; who knows what taxing banks on the deposits they hold might bring?
As of reporting, there is a petition to do exactly this, and it has 94 “ayes” compared to 52 “nays”. Furthermore, not only do citizens want it, but political parties like the RDC (Republic of DemocracyCraft) have made it one of their goals to usher in deposit taxes in DC.
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