Solo staker's taxes are a supposed reason for capping issuance. Proponents argue that solo stakers would be better off under the cap than a high staking ratio where their rewards come with higher dilution.
I think this argument falls apart when you model how much it costs to solo stake, which is unfortunately a lot. Electricity, hardware, internet, downtime, and the headaches of DIY are not free.
At a 70% staking ratio on today's curve (higher than I believe we can reach for the sake of argument). A 32 eth solo staker makes ~1.9% APR, ~$1167 gross. Operating costs are $537 (calculator here: taxes
@30% are $350. You make $280 per year net. (0.46% APR).
At a 40% ratio under a cap (lower than I believe we will reach for the sake of argument). You make ~0.8% APR, ~$491.50 gross. Operating costs are still $537, taxes are $147.50. You net to a $-193 loss. (-0.31% APR)
This effect applies even if you pump your eth stake way up to minimise the fixed operating costs. You have to argue about eth dilution and what that might do to the eth price because of stock to flow models, or make generous assumptions about why delegators making 0.72% APR for no effort will unstake, to try and make the math make sense.
What am I missing?
P.S. You make $1050 (1.71% APR) and $442 (0.72% APR) under these options if you delegate instead of solo staking. We definitely need to solve the disparity in taxation, and to make solo staking more economical, but this EIP does not seem to be beneficial for solo stakers as it claims to be.