Dreaming back to 1949, the great powers were there to deceive us

Foster was speechless. This was the combat command center, why did the situation suddenly change and a group of staff began discussing sales and taxation?

What a versatile group of advisors.

In order to gain broad opinions, Xie Zhiyu even called Deputy County Mayor Zhu Jie, Tax Bureau Director Sheng Xiang, Industry and Commerce Bureau Director Ouyang Rong and Finance Bureau Director Qian Bin overnight.

At the beginning of the meeting, the Director of the Taxation Bureau, Sheng Xiang, said bluntly,

"Our county's tax system originated from the Nationalist government and consists of three main components: customs duties, salt taxes, and unified taxes. Since the outbreak of the war, Bao'an has been surrounded on three sides, and domestic sales have been almost completely cut off. The majority of goods produced are exported. This has led to a serious consequence: unified taxes and customs duties overlap for many businesses, significantly increasing their costs and reducing their export competitiveness..."

Unified taxes, also known as ex-factory taxes or commodity taxes, are primarily levied on industrial products such as cigarettes, wheat flour, matches, and cement. Based on the principle of "one tax for one item," these products can be circulated nationwide after a one-time tax is collected.

Tariffs and salt taxes are easy to understand.

Customs duties, unified taxes and salt taxes accounted for more than 90% of the National Government's tax revenue for many years.

Many people may be wondering, as my country is an agricultural country, where does the agricultural tax go? Is it not levied?

The Nationalist government really did not collect taxes.

Why didn't they collect it? Because it couldn't be collected. At the time, the country was divided among warlords, and collecting taxes on foreign territory would immediately spark war. Another reason was that the Nationalist government represented the interests of large landowners and bureaucratic capitalists. Imposing an agricultural tax would have been a threat to the landowners' interests.

Although the government waived agricultural taxes, this did not mean that farmers' burdens were any lighter. Three major obstacles weighed heavily on farmers. Imperialism, through unequal treaties, dumped goods, bankrupting farmers and artisans. Feudalism exploited the peasantry through exorbitant taxes and high land rents. Bureaucratic capitalism exploited its power to plunder wealth and hinder economic development, for example by inflating salt prices and overissuing currency.

As the saying goes, the head follows the butt. Precisely because the reactionaries' taxes do not come from the broad masses of the people, they have no motivation to protect the people.

In June 1938, the reactionaries blew up the Yellow River dike just to delay the Japanese army, resulting in the deaths of 6 people, 89 million people homeless, and 390 million people affected. A large area of ​​​​the Yellow River floodplain was formed and could not be cultivated, which directly led to the Great Famine of 1200.

Logically speaking, unified taxes are an important source of finance for the reactionaries, and they should encourage industrial development. Unfortunately, the unified taxes they collect are basically on raw materials and primary products, such as cotton yarn, matches, cement, cigarettes, flour, sugar, tea, bamboo, wood, fur, ceramics, etc.

As for the cars, weapons and aircraft needed by the country, they are all imported.

As for your desire to develop national industries, all kinds of corrupt officials and land thugs can fleece you to death.

Xie Zhiyu's eyes widened after listening to Sheng Xiang's explanation of the pros and cons of the reactionary tax policy. He had previously only known that the reactionaries persecuted the common people, but now this was the root cause.

The economic base determines the superstructure.

"Director Sheng, how do you think our export taxes should be adjusted?"

Sheng Xiang was silent for a long time before he uttered two words.

"duty free!"

"duty free?"

“Yes, tax-free!”

Deputy Head Liu Hu glared at him and shouted,

"Brothers are so poor that they can barely eat. If you remove the tax, how can we survive?"

"That's right, we can barely afford to pay the soldiers' death pensions."

Xie Zhiyu knocked on the table and waited until everyone was quiet before speaking.

"Director Sheng, tell me your reasons!"

"After the export tax reduction, we may face financial difficulties in the short term, but as long as we can survive one or two months, our income will increase significantly."

“The reason is very simple.

First, the orders received by enterprises can be greatly increased, and the unified tax we collect will also increase accordingly.

Second, with more orders, companies will expand production, and our income from renting land can increase significantly.

Third, with more orders, people's incomes will increase. Will they shop, buy houses, or dine out? Consumption will be more robust, boosting all industries and attracting more investment."

As soon as Sheng Xiang finished speaking, Edward, who was listening, immediately raised an objection.

"General Xie, please think twice. Any decision requires extensive consultation."

He had reasons for his opposition. Life in Hong Kong was very difficult. In the past, people had no choice but to swallow their anger and become second-class citizens. But now, Bao'an also implements free economic policies and there is no cold-eyed discrimination. Everyone votes with their feet and knows where to go.

In the past, Bao'an had tariffs, so many people smuggled goods into Hong Kong and re-exported them, hoping to profit at least a little. If Bao'an were also tax-free, would Hong Kong still have a future?

For a city to develop, it still needs people.

A city without people is a dead city!

Deputy Head Liu Hu immediately retorted,

"Mr. Edward, you are just an observer. You can listen, but please do not express your opinions."

"you!"

Edward's neck was red, his face was full of anger, and he shouted,

"General Liu, as an observer, I have provided a great deal of assistance to the security corps!"

Liu Hu slammed the table and shouted,

"Edward, what the hell do you mean? Just because you provided assistance, do you think we have to listen to you? If you have such thoughts, I only have one word for you: Get lost!"

Edward was furious and stood up suddenly. Foster quickly grabbed him and tried to comfort him in English. The gist of it was that if the security team was finished, Hong Kong would be the next to suffer.

Edward was dissuaded and sat down angrily.

Wu Heng saw that the hammering effect was good, and said with a smile,

"Mr. Edward, we learned tax exemption from you. We still have a lot to learn from the Gentlemen's Country."

Liu Hu grinned and said, under the hint of Wu Heng's eyes,

"Mr. Edward, we, Liu Lao Hu, are a rough man, not a cunning man, and we always say what we mean. We are grateful for your assistance, but we also have a responsibility to the people of this county."

Xie Zhiyu coughed twice and finally spoke.

"Mr. Edward, I hope the unpleasantness just now will not affect our relationship. We are poor, and only by solving the financial problem can we hold on longer. Don't you agree?"

What could Edward say? He could only let it go.

"Generals, your words are too serious. Even tongues and teeth can clash sometimes."

"Mr. Edward is truly a gentleman!"

Seeing that the relationship between the two sides had eased, Qian Bin, director of the Finance Bureau, said worriedly,

"Tariff revenue accounts for 37% of fiscal revenue. If we stop collecting it, we must raise a bridge fund. If we calculate based on two months of zero revenue, we will need approximately million yuan!"

Edward was secretly shocked. He knew Baoan was wealthy, but he didn't expect him to be this wealthy.

If calculated according to what Qian Bin said, Bao'an's annual fiscal revenue is as high as 4.8 million yuan. If we then reversely extrapolate its gross domestic product, it is probably between 20 billion and 25 billion yuan.

A few months ago, this small fishing village was extremely poor.

Xie Zhiyu pondered for a moment and asked,

"What's your solution?"

"One is issuing bonds, the other is taking out a loan!"

Xie Zhiyu said without thinking,

"Let's take out a loan. Issuing bonds takes too long and we can't afford it!"

"Yes!"

We definitely cannot issue bonds, as that would harm our own people.

Xie Zhiyu looked at Foster and Edward and said with a smile,

"To thank you for your assistance, how about you two each take half of this loan?"

……