Rise of the 1630s South America

Chapter 2014 Financial Planning ([-])

"... Tax collection also needs to be economical. Whether the tax is economical or not usually refers to the administrative aspect. If there is a tax, a professional department needs to be set up for collection, and the cost of setting up an administrative agency is huge. If the tax collected is not enough to pay the huge establishment fee, then the tax is extremely uneconomical. Well, this kind of tax is indeed very rare, but the income of a certain tax only slightly exceeds the cost of its collection It is not uncommon in ancient times. Since the Ming Dynasty, many exorbitant taxes and miscellaneous taxes have been charged to the national treasury. Most of them have been collected by corrupt officials and subordinate officials who collect taxes. Disaster." In Huang Hanhua's office, the conversation between the two was still going on.

"When adopting a new tax, it also depends on whether it can be put into practice. There are some who are extremely fair in theory but difficult to implement once they are implemented. Generally speaking, it is rare for all kinds of taxes to be completely easy and unimpeded. Therefore, when adopting it, it is advisable to consider its size. Even if a type of tax can be applied within its maximum range, if it cannot be implemented, it can only be applied to a small part, then the country can adopt it. When adopting it, it is difficult In this case, the principle is slightly changed, so that the amount of the loss is not in the taxpayer but in the country, so that there is no harm in the principle of fairness. For example, the tax on farmers in this dynasty is limited to the field, and their personal income from working in slack farming cannot be determined. , The collection fee is high, so it is allowed not to pay. This is an inherent loss for the country, but it is beneficial to the people, so it is not levied. If it is similar to the former Ming Dynasty, the tax collectors are as fierce as tigers, and the reminders are urgent. It's normal to explode."

Kong Dahui was still talking eloquently, but the waiters filed in under the guidance of the secretary, and brought today's simple work meal.Of course, if it is a simple meal, it can be regarded as the honor of Vice Minister Huang Hanhua, so naturally it is not "simple".Steamed hake, braised white shrimp, grilled veal steak, clam tofu soup, stir-fried vegetables, plus a tomato and egg soup, is indeed relatively simple for Mr. Huang, which belongs to the nature of working lunch, but for ordinary civil servants and people on the street outside the window For countless working-class people, it's not that they can't afford it, but that they can't eat it every day.

For them, the white shrimp imported from the Tribunal District of Quito, Spain, the hake off the coast of the Namib Desert, the fresh veal from La Plata, and the famous Chilean dish clam tofu soup are all on the market during festivals. The food I bought for the Teeth Ceremony, I usually eat corned beef from the Pampa region in the south, salted fish from Patagonia, and red shrimp raised in cheap saltwater lakes. Senior civil servants like Huang Hanhua and Kong Dahui It's true that I dare not and don't need to eat and drink.

Some people may complain about the huge administrative expenses of the East Coast government for food and drink.Not to mention this kind of "light meal" that is not cheap, every official office of a certain level has a wine cabinet, providing a variety of beverages from red wine, white wine, beer to coffee, tea, etc., and the quality is very high .Moreover, many smoking officials (it can be said that most of them) can also receive premium Virginia shredded tobacco imported from North America on a monthly basis. It can be said that most of the things that can be seen on the market are available except for the lack of opium.

The reason for this may be related to the fact that the middle and high-level officials of the east coast government—especially the central ministries and commissions—are generally born in the family of the founding fathers, born rich, and accustomed to a high-quality and enjoyable life.For such a person, it is indeed impossible for you to let him eat potatoes and salted fish. They are even willing to spend their own money to buy all kinds of food, tobacco, alcohol, tea, etc., and they are not willing to lower their quality of life. This is the reality.

Kong Dahui was Huang Hanhua's confidant, and the two had worked together when they were in Guangzhou, so after his boss was promoted, he also rose to the top, and now he is a deputy bureau-level cadre, and I don't know how many people he envied.Not to mention, Huang Hanhua is now very likely to replace Wang Yan, who spends more time in the nursing home than in the office, and become a member in charge of the financial system, taxation system and the Precious Metals Administration. Thinking about it makes people dizzy and fascinated.

Therefore, Deputy Director Kong is now a popular person in the ministry. Even some officials whose ancestors were the founders of the country are more polite to him, and there are not a few who call him brothers and sisters. Therefore, his daily expenses and enjoyment are beyond the reach of ordinary people. within reach.Eating a "light meal" at noon, opening a bottle of good wine, and drinking some tea after dinner is really nothing, it's commonplace.

Of course he sometimes feels emotional.Before the Ming Dynasty, Guangdong was considered a prosperous province, with developed trade and prosperous commerce, but apart from some high-ranking and powerful people, there were a few dishes that could be easily picked up by officials on the east coast, including dishes from Southeast Asia. What about spices, spices from Persia, peppers from India, and other things from far away?The emperor of the Ming Dynasty liked to say that I was rich all over the world, but in Kong Dahui's view, this was not true. The rulers on the east coast were really rich all over the world.

The two chatted while eating like this, and soon the topic turned to what kind of tax to add. Kong Dahui, who was experienced in practice, proposed a tax similar to the capital gains tax of later generations, that is, the behavior of investing in stocks and bonds to levy profits. Taxes, and not only dividends and dividends are taxed, but also profits from trading stock price differences.To put it bluntly, this is to levy taxes on the increasingly prosperous financial industry in the two major markets of Qingdao and West Lake in order to enrich the national treasury.

In fact, this kind of securities and bond investment profits taxation has already been collected in the personal income tax.Of course, this is only in theory. In fact, due to various reasons, such as statistical difficulties and other factors, actual collection is difficult, and the situation of concealment and omission is extremely common, and the country loses a large amount of taxes in vain.

This time, Kong Dahui suggested that they should be listed separately and collected separately, and the industry and commerce department should cooperate. For example, it is mandatory to report detailed transaction information for all shareholding changes, and the tax department will evaluate and determine the actual tax amount.If there is no equity transaction that has been registered and submitted to the industrial and commercial administration department, the state will not recognize it, and it will not be protected by law in the event of future disputes.

To be honest, this tax is actually a bit sensitive. At a light level, it seeks to collect people's wealth, and at a serious level, it inhibits the development of industry and commerce. Therefore, the tax rate must be adjusted to a very low level, so that it can be implemented.In addition, considering that the most frequent equity investment company in the East Coast Republic is undoubtedly the well-known East Coast Company, which has made countless profits through equity investment and withdrawal since its establishment. The East Coast Company is pulling wool?If you really do this, you really have to think carefully about the consequences.

However, the benefits of imposing this tax are also very obvious.Due to the rapid economic development on the east coast and the prosperity of industry and commerce, the transaction behavior of enterprise transfer and transfer of part of equity is still very common, and the total amount is very high.Even if you only set a very low tax rate, the overall calculation is a very rich income.Moreover, Huang Hanhua is also pondering whether the scope of capital gains tax can be further expanded, not only the profits from stock trading and dividends, bond dividends, such as housing, land (mainly commercial land, agricultural land has a limit of [-] acres, Therefore, there are almost no transactions between private individuals) The profits from transactions can also be taxed, and the taxes that can be collected will be further expanded.

In addition, the capital gains tax has a real benefit, that is, it can greatly make up for the shortfall of the movable property tax that is being discussed for abolition.As we all know, chattel tax has been levied on the east coast for many years, but it has a very bad reputation. Many people call it robbery, which is actually an evil government among evil governments.Even many members of the Founders Council are gnashing their teeth at it, and it must be abolished soon. Therefore, it is estimated that this tax will not be levied for a few years, and a new tax source must be found to make up for it. The capital gains tax proposed by Kong Dahui seems to be a Very good idea, although the total amount may not be enough to make up for the big hole caused by the abolition of chattel tax, but it can make up a little bit, which is better than nothing.

Generally speaking, Huang Hanhua has a positive attitude towards the addition of this tax category.In fact, he still wanted to do something, but considering the sensitivity of this tax, he was a little hesitant. He was afraid of being hated by many people, which would affect his official career.However, maybe abolishing the mountain of chattel tax can restore the upper class’s opinion of him. It depends on how it is done. After all, chattel tax is too dark. Still got charged quite a bit, so they'd be cheering if they could cancel.

In addition, Kong Dahui also proposed to impose personal income tax on foreigners working on the east coast.In order to reduce the impact of this tax on immigration, Kong also proposed a "hard-earned income relief" proposal.To sum up, Deputy Director Kong suggested: 20. People from the East Coast who have worked in foreign countries for more than one year are still obliged to pay taxes; Lesson; third, the personal income tax collected for foreigners is divided into two types: hard-working income and property income. Hard-working income is caused by personal labor, and there is a reduction or exemption, ranging from [-]% to full reduction, depending on the nature of their work. , but the maximum amount shall not exceed [-] yuan, which is basically a green light for the vast number of non-national laborers.

The last of the above three items will not be ruled out to be extended to all citizens of the east coast in the future, that is, to reduce or exempt part of the personal income tax for those who earn income through honest work, so as to better encourage people to use labor to create wealth instead of relying on property income (such as collecting rent, etc.) to sit back and enjoy the benefits.This one, in fact, can improve Huang Hanhua's reputation, and he is quite tempted, but it is not suitable to implement it in the near future, so let's talk about it later.

All in all, with the country's social and economic development to a certain extent, the taxation system on the east coast is indeed time for reform.And considering the turmoil at home and abroad, the situation is unpredictable, and there are many places to spend money, so how to change it is still a test, and Huang Hanhua has to find someone to calculate it carefully.

(End of this chapter)