20 Chapter 20: Taxes
{Friday, Saturday and Sunday there will be no chapters, i need to study}
{Here the extra chapter}
{ 50 stones = 1 Chapter }
{You could even sugget me a Chinese novel you would like to read with a good grammar, lemme know.}
-----
Prosperia, Exit-Entry Administration Bureau.
Chen Yang opened the site background and saw hundreds of visa applications, almost all of which were tourist visas.
Both visas require a clean criminal record and take time to issue.
It had only taken less than half an hour. Only the officials from various countries could prepare all the materials so quickly.
He took a look and saw that the number of applicants from each country was similar, ranging from four or five to a dozen or so.
From the number of applications for these visas, we can roughly see how much countries pay attention to Prosperia.
There is attention, but the level of attention is not as high as Chen Yang thought.
This was also expected by Chen Yang.
The only thing Prosperia has shown now is that he is rich.
He is very clear-headed and knows which things can be touched at this stage and which things cannot be touched even to death.
It's not that he is incapable of making nuclear threats, but the problem is that doing so is completely meaningless.
It will not promote the development of Prosperia in the slightest, but will make many people who have hopes for Prosperia become timid.
You are a country that is just starting out, and you are starting to use force against other countries before your economy has developed. Who would dare to go there?
Keeping a low profile, attracting people, and rapidly developing the economy are the top priorities of Prosperia at the moment.
As for other countries coming to colonize, or launching military force to suppress...
This problem is almost non-existent.
Now it is no better than before. In the past, the great powers used to colonize crazily. However, today with the mature industrial and agricultural socialization system, it is the other way around.
In order to allow the colony of Surinam to become independent, Holland almost knelt down and begged, but Surinam refused to agree. In the end, they reluctantly agreed, but offered a sky-high price and required Holland to pay 6.5 billion Dutch guilders before becoming independent.
After several discussions, Holland finally got rid of Surinam after paying 3.5 billion Dutch guilders.
The same situation exists in French Guyana and Porto Rico, which are frantically trying to get rid of this burden.
However, after seeing the impoverished lives of its former brothers Guyana and Surinam after independence, French Guyana resolutely rejected France's proposal and refused to be independent.
As long as they are not independent, they will have the nationality of the country at birth and enjoy the national treatment and various subsidies of the country. Once independent, they will become today's Guyana and Surinam in minutes.
The same is true for Porto Rico, which has neither rich oil, natural gas or other resources, nor its own advantageous industries. Once it breaks away from the United States and loses financial subsidies, it will soon become a backward and poor country, and its living standards will plummet.
In order to maintain its current affluent life, Puerto Rico is not only unwilling to be independent, but has continuously held referendums to join the United States and become the 51st state of the United States. In order to prevent Puerto Rico from becoming a heavy burden to itself, the United States directly refused.
But despite this, Puerto Rico still belongs to the United States in name. Except that they do not have the right to vote or be elected, they have the treatment enjoyed by Americans.
Similar to Puerto Rico, there is Saipan, the island closest to Prosperia.
A small island that was also unwilling to become independent and voted to become an overseas territory of the United States through a referendum.
Prosperia is such a modern city, and no resources have been found on the island. Even if there are, Chen Yang does not intend to investigate for the time being, because it is not yet time.
For such a small island with no benefits at all, the so-called colonial behavior is no different from taking over.
Looking around the world, where wars occur today, they are either caused by resources, or by issues left over from history such as territorial disputes and geopolitics.
Prosperia does not have any of these problems.
Of course, with the development of Prosperia, there will definitely be some problems in the later period, and there will definitely be troubles caused by the country overtly or covertly, but everything will be within a certain range.
As long as Chen Yang doesn't mess around too much, there will basically be no big problems, and small problems won't be a problem.
After closing the background, Chen Yang did not process these tourist visas.
Although he released the tourist visa, he planned to delay it for a few days.
Wait until these workers are in place before processing.
The reason why tourist visas are introduced simultaneously is because he is worried that officials from various countries and some investors may occupy work visas in order to come to Prosperia.
Chen Yang opened a document, typed on the keyboard and wrote down a few keywords.
"Tax laws, prices, insurance."
Among the several things he announced today, the luxury cruise ship attracted the most attention, and the recruitment was the most discussed.
However, the investment promotion that many investors are looking forward to has not been mentioned at all.
It's not that it's not mentioned, it's that the tax law has not been implemented.
He has reserved a lot of shops in Tano City, intending to prepare them for people who want to come to Tano City to do business and open shops.
There are not many stores, so I mainly plan to use a few as examples to promote them.
But no matter how much, the corresponding tax laws must be determined.
For those who choose to start their own business in the early stage, the Chen Yang plan will provide corresponding tax benefits in the first year.
Migrant workers recruited from outside are exempted from personal income tax in the first year.
After one year, it is time to pay taxes. Whether you are an external employee or a citizen of Prosperia, the tax rate is the same.
Chen Yang called up the personal income tax rates of various countries and planned to refer to them.
While referring to the tax rates of various countries, he formulated the tax rates for Prosperia... no, Tano City.
He temporarily plans to use Tano City as a pilot first. Although Prosperia currently only has this city, it will be more convenient to change the tax law in the future if it is limited to one city.
Soon, the personal tax plan was drafted.
The starting point for personal income tax is 5,000 yuan, and the rate is 3% for those with an annual income of more than 60,000 yuan and less than 100,000 yuan.
100,000 to 200,000 is 7%, and so on, divided into seven levels.
The higher the income, the higher the tax rate.
Next is the tax laws for self-employed individuals and companies.
When it comes to doing business, Chen Yang's policies are quite strict and strictly follow the standards of developed countries.
His core philosophy is that the more you earn, the more you pay, which is a bit like robbing the rich and giving to the poor.
The early distribution system will have a profound impact in the later stage. This move is mainly to try to smooth the gap between the rich and the poor.
As for this distribution system, if it is not implemented in the early stage, it will be almost impossible to change it in the later stage.
So although Chen Yang understands that high tax rates will bring about serious problems, such as foreign investment being afraid to come, some companies will not consider Prosperia in their assembly and manufacturing processes.
But these are not within Chen Yang's consideration at all.
If any company has a choice, it will definitely give priority to moving manufacturing to countries with low labor costs.
Even if the tax rate is higher than that of the home country, the low cost of labor is enough to close the gap, and you can even make some money.
But Chen Yang never considered introducing foreign investment in the manufacturing process from the beginning. In other words, you can come, but whether you can accept the high labor costs is your business.
Low labor costs will only widen the gap between rich and poor and cause social conflicts.
In his blueprint for founding the country, the real primary industry is not manufacturing or labor-intensive industries, but independent innovation.
In the early stage, whether it was a furniture factory or agriculture and fishery, it was just to boost the population.
After the furniture factory was built, he could have introduced foreign capital to take over, but he did not do so. Instead, he opened a furniture factory in the name of Prosperia.
Prosperia's own furniture factory, although it is also a manufacturing company, can provide more benefits and higher treatment to its employees.
As Prosperia's economy continues to grow, ordinary workers can also enjoy the benefits brought by economic growth.
This is not to say that there are no low-end manufacturing industries in developed countries, of course there are, but the profits are not as high as building factories abroad.
This is why many people envy blue-collar workers in developed countries.
They are also workers engaged in manual labor, but the life of blue-collar workers in developed countries is more dignified.
They have weekends off, enough national holidays, complete social welfare, enough to support their families and a stable income, so the company does not dare to fire them at will.
Same job, but they're just better off.
This is Chen Yang's plan for Tano City Furniture Factory.
It is impossible for a country to be without ordinary manufacturing. Without such intensive industries, it means that there are not enough people, which means that society will have problems.
But whether ordinary manufacturing workers can live comfortably depends mainly on the country's distribution system.
Therefore, the negative impact of high taxes is not a problem at all for Chen Yang.
On the contrary, with high taxes, the country can function normally and can be invested in social welfare.
The tax law is being improved bit by bit, and time is passing quickly.
After setting the general framework of the tax law, Chen Yang bought dozens of robots and left the rest to them.
There is no rush to attract investment for the time being. After the tax law is finalized, the investment promotion can be carried out simultaneously.
The next thing to consider is price.
Generally speaking, high income has high prices, high income has low prices, low income has low prices, low income has high prices...
But this can only be used as a rough reference. The specific price score category depends on import and export, the abundance of natural resources, and productivity.
Prosperia currently only has one city, but it is no exaggeration to say that the technology of seed and fertilizer is the best in the world, and it is moving towards mechanized agricultural production. The agricultural output is enough to meet the daily needs of this city.
On the basis of high efficiency and low cost, basic food prices will not be too high.
The same is true for the animal husbandry industry. The entire process of breeding, raising, and slaughtering production and processing of breeding animals is highly automated. After costs are diluted, prices can also be reduced.
Let's not talk about the future, just say that now, the price of agricultural products can basically be lower than that of Longguo.
Chen Yang suddenly felt a little regretful. He had been thinking about attracting people to come here, but he didn't realize the benefits of developing agriculture until he considered the price.
Chen Yang feels that he has considered it comprehensively enough, but he still fails to consider many details. Some problems even come to light after encountering them.
Fortunately, it's just a city with enough room for error.
In addition to agricultural products, there is also fishery.
It relies on the sea to eat the sea, and the seafood production is sufficient.
Seafood in many coastal cities is cheap. There is no way around it. The production is so large that supply exceeds demand. Plus, the cost of shipping is reduced, so prices naturally come down.
The prices of some light industrial products can also be kept down. There is no monopoly on this kind of thing. Whoever bids the lowest will purchase it. Even after paying for freight and labor, the price will not be much higher.
As for technological electronic products, it's even simpler. They are free of tariffs and have lower value-added tax. You don't expect to make money from this, just make a small profit.
If outsiders really guess, there is a consortium behind Chen Yang.
When the consortium saw the prices set by Chen Yang, they dropped their picks and left in no time.
How about using this little profit for charity?
There's nothing we can do about it. Since we focus on long-term development, there will definitely be little room for short-term benefits.
It's already pretty good to be able to make a profit without losing money, so what else do you want from a bicycle?
After the basic commodity prices are roughly determined, the next step is housing prices.
-------
- End of chapter twenty -
[2,344 words]
Author's note: Please drop some stones for this poor beggar...
Let me know in the comments if you like this style of translation. stay tuned for more chapters!
Author, OUT!
