There are a few small exceptions to ignition stacking, and that's basically any ignition that is applied for multiple rounds, which as far as I know only comes from Founder Madara and Susanoo Itachi chases (3 rds each), and maybe a few others I'm not familiar with. Ignition like this stacks with the more normal 1 round ignition, but not with each other as far I've been able to determine. So at most only 2 stacks of ignition, and I have confirmed this in PvE extreme team exam (4k off ignition on elemental puppets is a life-saver :P).
It doesn't stack. I use itachi susano'o a lot in 3vs3 arena. I have never seen a 2k+ ignition damage, regardless who i or my pals use as other ninjas.
@OP: ignition doesn't stack because as a secondary effect makes healings useless if stacked would be stronger than poison and this would make no sense.
Tag reduces the enemy defense and resistance by 30%. Beware that this doesn't mean your damage will increase by 30%, it's up on how high those values are on your enemy. The higher they are the lower the effect of tag is due to diminishing return of def/res (in the sense the difference in damage dealt to a target with 7k res instead of 10k res is way higher than the difference between the damage delivered to a target whose def was brought from 20k to 14k).
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