Below is the official Prism Party statement regarding taxes on the server. If you have less than $20,000 in your account on the server, taxes will not apply to you every Monday at 11:30am Pacific Time. Taxes apply to all players, including those offline. Before you consider putting all your money into claim blocks, the transfer rate is not 1:1, so buying 1 claim block for $1.00 will get you $0.75 if you sell it back.
In any of the text below, gems refer to the server's in game currency and is denoted above and below with a $ dollar sign.
Quote from Discord --- "
The new tax system uses tax brackets, which work a lot like a measuring cup. If we need to add sugar for a cookie recipe, all we have to do is put the sugar into our measuring cup and scrape off the extra that the recipe doesn’t call for. Tax brackets don’t tax the money within their bracket, only the money after the given amount.
Imagine your Gems as the sugar in that measuring cup. Let’s say for argument that you have 10,000 Gems in the bank. If the tax bracket calls for 2% after 20,000 Gems, no taxes are taken out because you haven’t filled up the cup. Now let’s say you have 30,000 Gems. Under that same tax bracket, you have 10,000 Gems more than the bracket calls for, so only the extra, that 10,000 Gems, is taxed at 4%. That would mean taxes would take $400, leaving you with $29,600 gems after tax day.
" --- Pause Quote
So this analogy may not work anymore o_o
The way the current tax system works, once a player has reached the minimum tax bracket ($20,000), they are taxed a minimum amount (Tax Bracket * Bracket Percent), in addition to the extra gems that get taxed for the next bracket (Bracket Percent for Overflow).
If a player has exactly $20,000, on tax day they will be taxed $400 (20,000 * 0.02), leaving them with $19,600.
If a player has $21,000, they have a $1,000 overflow. They will be taxed a minimum of $400, as well as an additional $40 (1,000 * 0.04) using the next bracket percent, leaving them with $20,560.
If a player has $250,000, they have a $10,000 overflow. They will be taxed a minimum of $72,000 (240,000 * 0.30), as well as an additional $3,400 (10,000 * 0.34), leaving them with $174,600.
Resume Quote --- "
We’ve provided many many brackets to help ensure fairness & to ensure that players who are saving for leveling up aren’t majorly impacted. The current breakdown is as follows:
" --- End Quote
|Tax Bracket||Bracket Percent||Minimum Amount Deducted||Bracket Percent for Overflow|
Tax Record from 5/8/23
The below lists the amount of money before taxes = the amount of money after taxes.
1. 254,994.12* = 178,506.73
2. 200,001.13* = 156,000.88
3. 212,462.91 = 165,721
4. 200,801.20* = 157,498.54
5. 154,159.54 = 138,743.58
6. 141,804.24 = 127,623.81
7. 135,298.22 = 123,121.38
8. 124,700.86 = 115,489.75