Daming 1805

Chapter 472 The Direction of Efforts

Emperor Zhu Jianyan of the Ming Dynasty presided over the tax reform in the capital, and Zhu Jingyuan accelerated the reform of the ticket system in the south of the Yangtze River.

Zhu Zhongliang, the Supreme Emperor, did not stay too long after the Gusu Qianzhuang incident was triggered in Suzhou.

After the relevant personnel of Gusu Bank were arrested, they were directly handed over to court officials for disposal.

Zhu Zhongliang continued his inspection by himself.

After leaving Suzhou, I went to Songjiang, mainly to see the shipyard.

Then I transferred to Nantong and went to see the automobile industry.

Then I went around to Hangzhou and Zhoushan, and went to the eastern naval base.

Finally, I went out for a lap with the latest aircraft carrier formation.

After Zhu Zhongliang observed and asked about the latest aircraft carrier combat training methods, he felt very satisfied.

What I have been looking forward to for decades is finally infinitely close to complete body.

According to the information I know, jet aircraft, ship-borne and airborne missiles, and ship-based early warning aircraft have also begun to be developed.

The real service will be in the next few years.

Xintianfu's theoretical research on atomic weapons has also been basically completed.

The follow-up is an engineering problem.

As long as I don't get seriously ill in the past few years, I will definitely be able to see it in my lifetime.

On April 11th of the [-]th year of Ankang, Zhu Zhongliang returned to the Forbidden City of Yingtianfu again.

Zhu Jingyuan put down the work at hand to meet and accompany the old man.

In the bedroom of Renshou Palace, Zhu Zhongliang was very comfortable lying on the recliner, talking to Zhu Jingyuan who was sitting beside him:

"How's the income tax reform thing going? Is your dad working it out?"

Zhu Jingyuan recalled the undisclosed news he had received from his father's notice:
"The Ministry of Rites, the Ministry of Taxation, and the Ministry of Punishment have worked together to formulate a collection plan for inheritance tax and gift tax.

"They are all calculated in a progressive manner, but the threshold and tax rate are calculated separately.

"Inheritance tax is levied on the receiver, and gift tax is levied on the giver.

"The threshold for the gift tax is a single one-hundred-silver bill, and 1000 two-hundred silver bills per year.

"A single gift of one hundred silver bills, and a total of 1000 two hundred silver bills throughout the year will not pay taxes.

"If a single gift exceeds one hundred silver notes, but the annual gift does not exceed 1000 two hundred silver notes.

"At that time, it was paid according to the determined single gift tax rate, and the full amount will be refunded with the tax payment certificate in the second year.

"The part between one hundred silver bills and one thousand silver bills is subject to a tax rate of 5.00%.

"The part between one thousand silver bills and ten thousand silver bills is taxed at [-]%.

"The part between 20.00 silver bills and [-] silver bills is subject to a tax rate of [-]%.

"The part between 100 silver bills and 30.00 million, the tax rate is [-]%.

"The part above 100 million silver bills, the tax rate is 40.00%.

"The inheritance tax threshold is [-] silver bills, and the part below [-] silver bills will not be taxed.

"The part between 5.00 silver notes and [-] silver notes, the tax rate is [-]%.

"The part between 25 silver bills and [-] silver bills has a tax rate of [-]%.

"The part between 25 silver bills and 100 million silver bills, the tax rate is 20.00%.

"The part between 100 million and 500 million silver bills is subject to a tax rate of 30.00%.

"The part above 500 million silver bills, the tax rate is 40.00%.

"The last is the tax rebate package.

"The first level is general tax rebate, which is given to both parties and inheritors, who have no criminal record or tax evasion record.

"For inheritances worth less than 25 silver notes, and gifts of less than [-] silver notes.

"The tax paid according to the normal proportion at that time will be fully refunded in the second year.

"The final effective tax rate is zero.

"Inheritances worth more than 25 silver notes, and donations of more than 50.00 silver notes, [-]% of the tax will be refunded.

"All tax rates at the corresponding levels above will be halved.

"Regardless of gift or inheritance, the final effective tax rate shall not exceed 20.00%.

"Basically again, the remaining part of the tax can be returned in half with the approval of the Ministry of Rites and Zong Bo.

"With the special approval of the father, it can be returned in full.

"However, a large number of officials, shopkeepers, nobles, and clans have responded that they cannot accept this plan.

"The main reason is that there should be no front-end universal tax rebate scheme.

"The upper limit of the direct tax rate should be set at 20.00%.

"Then on this basis, it will be refunded with the approval of government offices at all levels.

"Mr. Shen suggested that the draft be announced to the whole world for discussion, but they also disagree..."

Zhu Zhongliang sneered when he heard this and said:
"Obviously, people with assets of tens of thousands, hundreds of thousands, or even millions of silver notes will more or less have illegal records.

"According to Shizu's old rules, it is a crime to ride a horse and drive a car after drinking, and it is illegal to go in a wrong direction, and it is also illegal to evade taxes if you don't pay a penny.

"Those nobles and clans may not dare to make big mistakes, but there must be a lot of small mistakes, and few of them have never been punished by any yamen.

"It is basically impossible for all those who run industries and commerce to avoid any tax at all.

"The people who pay taxes honestly, live honestly, and do not violate the law at all are mostly workers and small businessmen.

"So if you follow this rule, this group of people is equivalent to giving up half of the tax directly.

"Of course they disagree.

"As for the public discussion... this basic plan is obviously restricting the wealthy class.

"Ordinary families...not to mention ordinary families, the vast majority of professional bureaucratic families and most ordinary businessmen should not have a family property of 25 silver notes.

"Even most people can't imagine that they can earn a family property of 25 silver bills in this life.

"When this tax law plan is announced, the relevant personnel will definitely feel very happy, and many people will definitely express their support.

"It's not because ordinary people don't see good in others, but taxing the rich can narrow the class gap.

"It is beneficial for the children of ordinary families to catch up with the children of rich families through hard work...

"However, there are basically no real ordinary families who can directly participate in the discussion, and most of them will be restricted.

"So most of the people around your father will stand up and oppose it.

“This plan will definitely need to be revised.

"At the very least, no illegal record, most likely to be changed to no criminal record.

"Even no criminal record in recent years, no record of tax evasion...

"It depends on how far your father can compete with them."

Zhu Jingyuan also nodded slightly:

"I originally thought that the inheritance tax would not be levied directly, but I didn't expect that the father really wanted to collect this tax."

Hearing this, Zhu Zhongliang couldn't help but sat up:
"You...you don't know how expensive Chai Mi is if you are not in charge, so you are too generous when making decisions.

"While I can still move, I will talk to you today.

"Emperor Shizu's method of lifting the roof is of course useful. Although the plan of lifting the roof is usually not the ultimate goal, the corresponding plan of opening the windows is not random.

"If it can be done, the roof-lifting solution is the final solution.

"If you can not compromise, if you don't compromise, then don't compromise, you must stick to your goals.

"Like this inheritance tax, if it can be collected, of course it will be collected.

"It's not that you give up when you find it difficult.

"If you feel that everything is difficult and you give up, then there is no need to fight outside.

"War is so difficult, just admit defeat!"

Zhu Jingyuan opened his mouth:
"Grandpa... It's not that I want to give up, it's that the inheritance tax is really too difficult to collect.

"It's not that the estate owner doesn't cooperate, but more importantly, it's difficult to quantify and deliver.

"For example, a family has a factory, and the market value is 100 million silver notes.

"According to the current temporary tax plan, when this factory is passed on to the children, a tax of 17 silver notes will be paid.

"The entire factory is only worth 100 million silver bills, and it is impossible to have a working capital of 17 silver bills in the account.

"Even if there are, if all of them are taken out to pay taxes, the whole factory will be paralyzed from then on, and it is likely to go bankrupt directly.

"If the level continues to rise, the pressure will become greater.

"A firm with a market price of 1000 million silver bills had to pay 330 million silver bills in tax at that time.

"It's impossible for the heir to get it...

"It is a similar situation with houses and estates.

"If an aristocrat's manor and land are worth tens of millions of silver notes, but the annual income may not exceed 100 million silver notes, he still has to deal with various expenses.

"It's impossible for his children to pay the inheritance tax..."

Zhu Zhongliang shook his head when he heard this:

"You usually consider issues from the standpoint of the workers, why are you now on the side of the factory owners?

"Even from the standpoint of the factory owner, you haven't fully grasped their methods.

"It's very simple for the heirs of factories and commercial firms to pay taxes if they can't come up with cash, they just need to hand over the equity proportionately.

"It just so happens that the imperial court already has a government-run consortium, and it just needs to give the shares to similar manufacturers of the government-run consortium to operate.

"If you don't want to hand over your equity, you can go to a bank for a mortgage and repay the loan over several years or even ten years.

"It is also possible to distribute the equity of the factory to the owners of the entire family, and even use the shares to hire important shopkeepers and managers.

"Because this inheritance tax plan is based on the tax rate calculated according to the amount of assets acquired by the heirs.

"The lower the amount of assets a single heir gets, the less tax he will have to pay overall.

"If the assets of 1000 million yuan are not split, you need to pay 330 million yuan in income tax.

"After distributing to ten people, each person's assets are 100 million, and they need to pay 17 silver bills in taxes.

"The total amount of tax that ten people need to pay is only 170 million silver bills left.

"The big owners of the factory actually only need to hold [-]% of the shares to fully control the entire factory.

"The rest can be distributed to important subordinates and partners.

"The [-]% of the shares will be divided among several children, and the tax paid by each child and the total tax will be less.

"The imperial court can also issue special regulations so that the tax rate can be further reduced in the case of splitting up the inherited family property.

"For example, if 1000 million yuan is distributed to five children on average, each child can get 200 million yuan, but each person only needs to pay income tax according to the 100 million standard.

"Plus in the part that will eventually be rebated, and the actual tax that needs to be paid will be even lower.

"This kind of plan can be regarded as a new version of the tweet order in a certain form...

"You don't have to worry, manufacturers will lose scale benefits after continuous splitting, large factories and commercial firms are of course government-run.

"The finer the classification of private manufacturers, the more stable the entire market will be.

"Just like the agricultural era, when the whole world was full of owner farmers and small landlords, society was much more stable than at the end of a dynasty when there were big landlords and tenant farmers.

"This method can also be used to transform the folk clan-style manufacturer management method into a commercial management method.

"Several heirs can all own equity, and the equity can be handed over to government-run manufacturers as inheritance tax.

"However, the entire plant itself, can continue to operate at full capacity.

"It's just that the manager has changed from the original owner's family to a professional shopkeeper that the imperial court can intervene in.

"What's more, the most important purpose of this tax reform is to finalize the law.

"The current situation in Daming may be difficult to carry out, but it can be used as a goal to work hard.

"In the future, around the existing tax laws, we will explore a reasonable implementation plan, establish a sound executive organization, and slowly put them away."

After hearing this, Zhu Jingyuan nodded again and again in a sudden realization:
"I... I really didn't think about it, my thinking really went astray...

"In fact, I didn't mean to think about the problem from the perspective of the factory owner.

"I just think from the perspective of the 'factory' itself.

"I didn't immediately consider the issue of separating the ownership and operation of the 'factory'..."

Zhu Jingyuan actually read a lot of news and self-media articles in his previous life.

I really feel that inheritance tax and gift tax are too difficult to collect.

I even considered that the factories that were normally operating would directly collapse because of the inheritance tax.

He did not consider other modern means, as well as simpler and cruder solutions that could be implemented in the era of royal power.

Zhu Jingyuan even subconsciously believed that the inheritance tax that some people claimed harmed the interests of the middle class.

However, the inheritance tax threshold in the United States in later generations has already mentioned more than 100 million U.S. dollars, and the total gift tax exemption is also more than 100 million U.S. dollars.

The middle class in the United States is said to have more than two million assets in 2000. In fact, the assets of most people are negative...

The actual starting point in the preliminary plan of Daming's inheritance tax is to put 25 silver notes directly, which is equivalent to 500 million yuan in later generations.

At the same time, the land and real estate prices in Daming were firmly held down by the imperial court and could not rise at all.

In this case, families with 500 million assets can only be the owners of small factories and manufacturers.

It is difficult for well-run self-employed individuals to meet this standard.

Moreover, even if the assets exceed 20 silver notes, the actual tax rate for less than 100 million silver notes is only [-]%.

This is equivalent to 40.00 million yuan of assets in later generations, and only [-]% of the inheritance tax needs to be paid. The inheritance tax rate in the United States is [-]%.

Compared with the bourgeois country of the United States in later generations, this is really conservative and traditional to a very high degree...

Listening to Zhu Jingyuan's explanation, Zhu Zhongliang quickly understood.

Compared with taking care of ordinary workers and farmers, my grandson actually cares more about industrial development.

Especially the promotion of industries such as aviation, enterprises, and shipbuilding has reached an extreme level.

It is understandable to worry that inheritance tax will cripple well-run factories and businesses.

(End of this chapter)