Wealth

Vol 5 Chapter 1100: Where is the money?

At that time, the central government was not very clear about the local situation. Due to the influence of the Cultural Revolution, many local affairs had been corrupted. At this time, the central government still needed local support to restore its authority.

In a sense, the status of local officials at this time is tangible. They have considerable influence in the central government and are highly respected by high-level officials.

The reason for this is that the local governments themselves have control over the financial and administrative powers, while the central government needs to rely on the income of the local governments to make a living, which is too dependent.

Under this contract system, the local government and the central government are playing games, and the information between the two parties is asymmetrical. Local governments have information advantages.

Although the central government has to revise the contract quota every few years and continuously increase the proportion and base number that the local governments hand over to the central government according to the situation, the local government is still uncertain.

This is the so-called proportion of the extra-budgetary revenue of local governments is getting higher and higher, and even a large amount of illegal extra-system revenue is collected. The stronger the local government, the more it gets richer, and the so-called princely economy emerges.

The prince economy did exist at that time, but the prince economy is not necessarily a bad economy. Although local protectionism is on its bad side. But the princely economy also has its good side.

The competition of local governments is one reason for the Chinese miracle.

At that time, there was a problem in the report provided by the Queen's economic experts at the decision-making level of China Fire, that is, they assumed that the local government was evil, that is, self-interested, and the central government was good, that was altruistic.

But whether it is the local government or the central government. All have the internal impulse to expand power and pursue profit, mainly due to the lack of internal checks and balances and external restraint mechanisms.

In other words, they should assume that both are evil, and then consider the rules of government power checks and balances that are needed in the country. But they did not have such awareness at the time, but believed that if local governments were allowed to continue to do so, then China would disintegrate like Yugoslavia.

In fact, you cannot look at it this way. If it does lead to disintegration, it is a military problem. As long as the central government can maintain and control the army, it can control the promotion, appointment and removal of local government officials. It is impossible for other governments to disintegrate.

Such a unified vertical system in China obviously has a natural fear of the weakening of the central government's ability to control.

At that time, China was in the transitional stage and required a lot of fiscal expenditures, especially for state-owned enterprises that had a lot of losses. Therefore, the strategy of grasping the big and letting go of the small was put forward in the early 1990s. Before this, some places had quietly established local state-owned enterprises. Restructuring. There was a large-scale restructuring of township collective enterprises around 1992, and a second time around 1997. After these two times, there were basically not many township collective enterprises left, and basically they could be reformed. The changes are almost astonished.

The driving force for reform at that time was the comprehensive consideration of the government's tax revenue and profits from enterprises and the government's corporate management costs. Loss-making state-owned enterprises, local and township collective enterprises not only have to make up for the holes financially, but also have to support so many people.

Then the government found that developing private enterprises would be great. There is no burden at all, and you can still enjoy it. Just collect taxes. At that time, even if township and village enterprises and state-owned enterprises were doing well, they were still selling. The reason for this phenomenon. It is because privatization has become a tool for competition among local government systems, and it has also become an image tool for local government officials to promote ideological emancipation, political enlightenment, and attract foreign capital.

From the perspective of tax distribution and sharing, after the reform of the tax-sharing system, the central government has collected the bulk of the tax revenue and some of the most easily levied taxes. Local governments only get less than 50% of fiscal revenue. But they have to bear more than 80% of the expenditure responsibility, and the power of affairs and financial power are seriously mismatched.

The gap in revenue and expenditure in this part of the local budget is mainly resolved through transfer payments from the central government. For a giant transitional country like China, most of the expenditures have always occurred locally. The central government has no way to directly implement many expenditures, and can only do so through transfer payments.

That is to say, although the tax-sharing system reform at that time was an innovation based on the original system, it was not a tax-sharing system in the strict sense. As a result of this tax sharing, local governments generally rely heavily on transfer payments in their general budgets. The central government has a lot of revenue but not much revenue. A large amount of it is transfer payments. For every 100 yuan spent by local governments, more than 40 yuan is spent. Transfer payments from the central government.

There are two types of transfer payments, one is called general transfer payment and the other is called special transfer payment. General transfer payments are often relatively transparent. They are calculated based on formulas, such as the funding gap for compulsory education and public health, which can be easily calculated by the central government based on headcount standards.

Special transfer payments are linked to special funds held by many central departments, and their use is not transparent. It is easily affected by the money from local governments and enterprises.

But both of these have problems. First, general transfer payments are more comprehensively considered by local governments. Easily used for food finance, basic public services may still lack funds. Secondly, the transfer payment channel is too long, and the flow is blocked at various levels. For example, the higher-level government often misappropriates the transfer payment for other purposes or deducts the tax arrears of the lower-level government. This situation is more harmful to the backward areas. Thirdly, many backward areas mainly rely on central transfer payments, and no longer pay attention to cultivating and using local financial resources, forming local independent personality deficiency syndrome, and local areas lose the vitality of endogenous development.

Therefore, in fact, boss Zhu is still not satisfied with the reform of the tax-sharing system and believes that the reform has not been thorough.

But for the senior leaders at the time, such a change was the most appropriate, because the central government was financially rich, and if it had money, it would be rich and powerful, what it said would be effective, and someone would listen to it. There is no need to worry about local governments being disobedient, and there is no need to worry about the emergence of a princely economy, and the waist will be much harder.

In this way, even if Zhu Laohui had the intention to deepen the reform of the tax sharing system, he could no longer promote this work in depth.

Especially now that he is facing a change of office soon, Boss Zhu himself knows that he will definitely no longer have his place in the next government. At this time, he is in a big fight, and it is inevitable that some people will think that he has other intentions. Therefore, the continued deepening of the tax-sharing system will no longer be on the agenda.

But leaving this one-and-a-half pull-off project to leave, Boss Zhu didn't feel very happy in his heart. He always hopes to leave a better foundation for his successor. So when Fan Hyung mentioned about plugging the loophole of tax evasion before dinner in the evening. Boss Zhu immediately grasped this breakthrough sensitively.

Those present tonight are all people from the industrial and commercial sectors, and they are basically representatives of the industrial and commercial sectors with a certain status. Boss Zhu seemed to utter the news about cracking down on stealing...deleted. It’s not the same if it falls on everyone’s ears

Some people in the husband think this is Boss Zhu who is blowing to everyone, showing the central government's commitment.

Therefore, when the boss Zhu was careful about words, when everyone started the dinner, many people ran to the familiar friends. Let's discuss this together. The topic, predict whether the tax policy will become tighter in the future?

"Who is the young man next to Boss Zhu, his eyes are very good." Someone pointed to Fan Wuyao and asked others.

"You don't even know the famous Fan Investment Group boss?" Someone immediately said

.

"He is Fan Wuyi?!" The man immediately took a breath.

In fact, there are still many people who have dealt with Fan Wuyao. Although there are not many people who dare to run to Boss Zhu to ask about this tax evasion policy, there are not many people who can talk to Fan Wuyao. That's a lot, so when Boss Zhu sat down to talk with a few older business elders. Many business people who had been in contact with Fan Wuyao gathered around and asked Fan Wuyao for inside information about this matter.

"Does the government have to take any major actions to combat tax evasion?"

"Will the previous tax law be revised?"

"Regarding the issue of corporate tax avoidance, will it also be included in this time against tax evasion?"

"Does the government have any specific operational plans, for example, how many billions of work targets are planned?"

Everyone’s questions are babbled, and the design content is extremely wide. Fan Wubing smiled and listened to everyone’s questions, and then raised his hand and gestured for everyone to be quiet, “I know nothing better about this. How much more. But when it comes to the disadvantages of tax evasion, it is obvious. The existence of this kind of behavior not only harms national interests, but also poses a serious threat to us law-abiding operators."

This is a bit of an exaggeration, right? Everyone looked at each other immediately, saying that they knew that your father was Vice Premier Fan, but there is no need to speak for the government like this, right? After all, you are the biggest industrial and commercial tycoon. If the tax policy is tight, will it not affect you at all?

It is to sing a high profile. There is no need to put yourself in, right? Moreover, everyone knows that if Fan Investment Group is suspicious of this policy, its huge influence is enough for many companies to follow suit, and indirectly affects government decision-making, so that they are launching this policy. Consider it at the time and decide carefully.

However, now Fan Wubing seems to have reached a consensus with Boss Zhu.

Seeing Fan Wubing's calm expression, everyone would still not understand that they had already formed a tacit understanding.

What's more, considering the Deputy Prime Minister Fan Heng behind Fan Wubing, the Fan Investment Group cannot dismantle Zhu’s boss’s desk. If that happens, it would be equivalent to Fan Wu’s dismantling his father Fan Heng’s desk.

"The key is that everyone's position is different." Some people secretly sighed in their hearts. It seems that it is unrealistic to expect Fan to get ahead, but apart from the fact that a behemoth like Fan Investment Group can raise public doubts. Indeed, no company dared to express a different attitude on this issue.

Even if a few people put forward different opinions, their influence is limited. Not only is it useless, but it also invites accidents for themselves. Therefore, on this issue, no one dares to say no.

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Fan Wubing is naturally able to guess what is in the hearts of everyone. Therefore, the problem of combating tax evasion and evasion must of course be painfully exposed, so he said, "You may not have calculated it carefully. The annual tax revenue is about 17 trillion yuan, and the loss of tax evasion is about 500 billion yuan. What is this concept?"

Seeing that there was no response from everyone, Fan Wuyao opened his mouth and said, "I'll give you an example, let's take the current education as an example."

"A century-old plan. Education is the foundation, and the rise and fall of the country is tied to education. Although the most famous sayings are endless, people have time to take care of them because the cost of education has filled people's minds. The government is responding to the growing demand for education funding. Worry, the school is bothering about how to raise more funds, and the parents are worried about the innumerable educational expenses." Fan Wubing said with some emotion, "I guess you don’t need to worry about this, but many ordinary people are very I want to know how much money has been invested in education? Why are so many children still unable to go to school?"

Fan Wubing mentioned this sensitive issue, and it immediately attracted the attention of everyone. After all, the topics of education, medical care, and real estate are the issues that everyone is most concerned about today. Hearing Fan Wubing’s tone, it seems that he is ready to break the news. NS.

Boss Zhu was chatting with people there, and at this time he also noticed the situation on Fan Wubing's side~www.wuxiamtl.com~ I thought this guy was going to say something shocking and deafening. It seems that there are a lot of people who follow him. !

"The total national investment in formal education this year is about 920 billion. The total national education investment is divided into three parts. State financial appropriation, social school funding, student family education expenditure, referred to as state investment, social investment, and personal investment. "Fan Wubiao said, "In today's society, the main investor in education in most countries is the government, especially in elementary and secondary education. The average burden of residents in the world is less than 8%, but the domestic reality is far from the case. This year, of the total investment of 920 billion yuan in education, the state invested about 310 billion yuan, which is slightly higher than one-third, and social investment is about 35 billion yuan, accounting for less than percent. Four, and personal investment is about 580 billion, accounting for 63%."

"Oh Yi" listeners all expressed their understanding, no wonder everyone is yelling that school is difficult to go to school is expensive, personal investment accounted for the bulk, of course, can not afford to go to school.

"Where did all the money go?" Fan Wuyao spread his hands. "The annual tax loss just from tax evasion and tax evasion is about 500 billion yuan. If the 500 billion yuan is recovered, it will be used for offsetting. In terms of personal education investment, the personal investment directly dropped to 80 billion! That is to say, less than one-seventh of the personal investment is now!"

"Wow," the listener exclaimed again. They didn't expect the impact of tax evasion to be so great.

"What kind of concept is that?" Fan Wuyao looked around and said, "That is equivalent to the university with the highest tuition fees. Each student's tuition will immediately drop to a few hundred yuan! At this time, ordinary people will still Are there so many complaints?!"

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