Fiscal Policy Analysis

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This page contains supplementary analysis of the Fiscal Policy, including current wealth distribution, tax vs interest crossover modelling, and projected revenue with balance decay. Data sourced from Bank of ASEAN accounts as at 24 March 2026.

1. Balance Tier Impact

The following table shows the monthly wealth tax for a player who remains idle for 30 days straight, broken down by starting balance tier:

Table 1: Monthly wealth tax by balance tier (30 days idle)
Starting Balance	Monthly Tax	Effective Rate	Remaining
$500,000	$0	0%	$500,000
$1,000,000	$44,550	4.5%	$955,450
$5,000,000	$437,400	8.7%	$4,562,600
$10,000,000	$1,231,200	12.3%	$8,768,800
$50,000,000	$8,316,000	16.6%	$41,684,000
$200,000,000	$34,938,000	17.5%	$165,062,000

2. Tax vs Interest Crossover

The following table shows how many days of continuous idleness it takes for cumulative wealth tax to exceed cumulative interest earned. Beyond this point, the account is in net decline.

Table 2: Days offline until cumulative wealth tax exceeds cumulative interest
Balance	Crossover	Observation
$500,000	Never	Exempt from wealth tax
$1,000,000	Never	Interest always exceeds tax — Low bracket (k=0.75)
$2,000,000	Never	Interest always exceeds tax — Low bracket
$5,000,000	~171 days	Mid bracket (k=1.25) eventually dominates
$10,000,000	~117 days	Full bracket range; interest scaling starts
$30,000,000	~35 days	Interest scaling (60% rate) + High bracket (k=1.75)
$50,000,000	~19 days	Interest scaling (37% rate)
$100,000,000	~6 days	Interest scaling (11% rate)
$200,000,000	<1 day	Interest effectively zero (2% scale)

Below $2M, interest always outpaces the wealth tax — the system is net-positive for smaller accounts regardless of activity. Above $5M, inactivity becomes increasingly punitive as both the tax brackets and the interest scaling work against idle wealth.

3. Projected Revenue

The following projections use real account data from the Bank of ASEAN (as at 24 March 2026) and simulate hour-by-hour tax collection with balance decay. Assumptions: 15% daily active rate (players who log in reset their offline clock), no new deposits.

3.1 Current Account Distribution

Table 3: Account distribution (922 accounts, $4.89B total)
Bracket	Accounts	Total Balance	% of Wealth
Under $500K (exempt)	611	$59,425,797	1.2%
$500K – $2.5M (Low)	146	$162,002,249	3.3%
$2.5M – $10M (Mid)	91	$428,502,375	8.8%
$10M – $50M (High)	50	$1,174,325,529	24.0%
$50M – $100M	12	$837,298,919	17.1%
$100M+	12	$2,230,116,200	45.6%

! Key observation: 66% of the nation's wealth is held in just 24 accounts ($50M+). These accounts are the primary source of wealth tax revenue — and are also subject to the steepest interest scaling (37%–2% effective interest rate).

3.2 12-Month Revenue Projection

Table 4: Projected wealth tax revenue (with balance decay)
Month	Tax Collected	Avg Daily	Remaining Taxable Balance
1	$187,008,063	$6,233,602	$5,105,208,568
2	$140,105,277	$4,670,176	$4,965,103,291
3	$131,285,373	$4,376,179	$4,833,817,918
4	$140,685,647	$4,689,522	$4,693,132,271
6	$118,126,882	$3,937,563	$4,431,641,251
9	$111,671,151	$3,722,372	$4,082,308,280
12	$117,608,637	$3,920,288	$3,761,728,182

12-month projected total: $1,530,488,449

Taxable pool reduction: 28.9% ($5.29B → $3.76B)

Revenue declines over time as the taxable pool shrinks — this is by design. The wealth tax is self-limiting: as idle balances are eroded, the remaining accounts contribute less, and the system naturally approaches an equilibrium where tax revenue matches new wealth creation from active economic activity.