The absurd part about taxation, is that it is applied to the job cost, so after the system index.

formula is :

- job_cost = (100+rig_bonus)/100 * cost_index / 100 * base_cost
- tax_cost = tax / 100 * job_cost
- total_cost = tax_cost + job_cost

If your base cost is 100, the system cost index is 2%, the tax is 10%, then your job cost is 2 is, and the tax is … 0.2 isk. So when the cost index is high, you can make money but ppl don’t go in your structure because it’s too expensive.

What’s even more absurd is that the rigs, that are reducing the job cost, also reduce your tax and thus you pay to gain less money.

A proposal for fix :

- tax from citadel is applied on base cost of item. 1% means it adds a flat 1 point to the cost index of the system, for a user.
- plus, minimum tax for industry (all activities) is set to 2% in empire, 1.5% in LS, 1% in NS/WS.
- plus, the effect of the rigs for reducing job cost, only apply to system cost index (so no more to tax).

With this modification, if I have 1.5% tax in LS (the minimum), with base cost 100, index 2%, with a -19% rig, the cost becomes ± 1.6 from cost index + 1.5 from tax, total = 3.1.

Same situation in HS, min tax is 2%, rig becomes -10% so total tax = 2 from tax + 1.9 from cost index = 3.9%

same situation in NS, min tax is 1%, rig becomes -21%, so 1% from tax, 1.58% from cost index => total 2.58% cost

new formula :

- job_cost = (100+rig_bonus)/100 * cost_index / 100 * base_cost (no change)
- tax_cost = tax /100 * base_cost
- total cost = job_cost+tax_cost (unchanged)