Chapter 576： Cruel taxation

Chapter 576

"These excellent employees are the company's most valuable asset. Their loss will accelerate the company's decline."

George said lightly, "Besides, high house prices will **** up ordinary people's deposits. House slaves have been carrying debts for decades in advance, and their spending power in the next few decades will not be greatly improved. This will cause the manufacturing industry to lose its entire future."

George said in a positive tone, "Hong Kong's existing distribution system determines the decline of manufacturing."

Xu Wenbiao's face became a little pale, and every word of George fell on his sore spot.

He lowered his head and added what George hadn't said.

"Although from the current price point of view, these discounted manufacturing industries have a good appeal. However, these manufacturing industries have lost their future, and high housing prices are destined to reduce their profits year by year and their costs to increase year by year."

"In a few years, those manufacturing industries that seem to be profitable will also go bankrupt and lose money."

George nodded and said faintly, "Hong Kong's existing distribution system has determined that it is not suitable for the survival of the manufacturing industry. Obviously, we are enterprises and businessmen. We cannot change Hong Kong's distribution system."

Xu Wenbiao said in a bitter tone, "Unless the citizens recognize this and are willing to make sacrifices to protect Hong Kong's manufacturing industry. Otherwise, the manufacturing industry will slowly disappear in Hong Kong."

He said in an annoyed tone, "But why can house prices continue to rise on the basis of a bubble? People's income has not risen accordingly."

George smiled and explained, “House prices do not need to correspond to the increase in people’s incomes. It’s good to understand house prices as taxes. House prices are a kind of tax. As long as the tax can continue and the rule can continue, the house price can maintain."

"House price is an invisible tax." Xu Wenbiao murmured.

"If you know about the Muggle world... uh, the history of the human world." George was quick to speak, and he had already spoken smoothly. He slowed down and said slowly. Portable space: the famous abandoned concubine has a little field

"Franklin once said that only death and taxes are inevitable. The only thing that the human world cannot escape is death and taxes."

"From everything you consume, your breakfast in the morning, to the clothes you wear, the dwelling you live in, and the vehicles you commute to and from get off work. There are endless taxes hidden behind everything you encounter."

George said in a relaxed tone, "All other costs can be compressed, but tax can not be compressed. If you can see this, you will understand that the price of breakfast is not because of the uncle who sells breakfast. I feel I should get a high income."

"It's because of taxes, which pushed up the cost of selling breakfast. He can work harder himself, but he can't pay less tax. The fundamental reason for the price increase of breakfast is because of the increase in taxes."

"So clothes are too expensive because of taxes. Houses are too expensive, but also because of taxes. Traveling is too expensive, in fact, because of taxes."

George said slowly, "The city you live in, everything that surrounds you in modernization, behind everything, there are tax reasons that play a role. What keeps the whole city running is the tax, and what keeps the whole city running, those Official income is also tax."

"When the cost of running a city is too high, and the income of officials is too high, all costs of the entire city will continue to rise under the influence of taxation, which will eventually lead to a high cost of living in the entire city."

Xu Wenbiao nodded, "Hong Kong is a country with an ostensibly low tax system. Nearly half of the Hong Kong government's fiscal revenue is based on land transfers. Government officials have great incentives to push up land prices and jointly push up housing prices."

George said flatly, "The price of land transfer, the deed fee for the transfer of real estate, and other taxes and fees brought by investment, real estate accounts for most of the Hong Kong government’s tax revenue. In this case, as long as the Hong Kong government’s tax revenue If they can maintain it, they will do their best to maintain Hong Kong’s high housing prices."

"Could it be that Hong Kong's housing prices will continue to rise? So much that everyone can't afford it?" Li Youran asked curiously. No one in Hong Kong would not care about the trend of housing prices in Hong Kong. Reborn Master Almighty

The other colleagues were listening to George's analysis attentively. They are all Hong Kong people and have immediate interest in Hong Kong's housing prices. They are eager to know how Hong Kong housing prices will change.

They all want to know whether they should buy in debt now, or wait to buy a house when they have money. Or simply need to sell their own house, waiting for the price drop.

George slowly explained, "House prices are taxes. These invisible taxes are an important means to ensure the financial balance of the Hong Kong government. They have the greatest willingness to maintain high prices."

"But the Hong Kong government is not omnipotent. The Hong Kong government adopts the linked exchange rate system. This is a more restrained and more effective exchange rate system. The Hong Kong government itself cannot directly issue Hong Kong dollars and must have the corresponding U.S. dollars as a guarantee. , The Hong Kong government can use US dollars to increase the Hong Kong dollar in the market."

George said slowly, "These Hong Kong dollars are an important means of pushing up housing prices, but Hong Kong's manufacturing industry is declining. If under normal circumstances, with the decline of Hong Kong's manufacturing industryHong Kong can obtain The US dollar will become less and less, and finally house prices will reach their peak."

Xu Wenbiao nodded and said, "So logically speaking, the decline in Hong Kong's manufacturing industry has brought people's incomes that cannot keep up with the growth of house prices, which should have caused house prices to fall. But now, because everyone is optimistic about the speculation factors after the return, Instead, it attracted more U.S. dollars at home and abroad, pushing up housing prices."

Li Youran asked cautiously, "Then, only when those U.S. dollars that are optimistic about Hong Kong house prices leave, will Hong Kong house prices fall?"

"That's the case." George said in a positive tone. "Look at those dollars. When will it be more and more difficult for Hong Kong to obtain dollars? When will those dollars start to stop growing. The last bubble in Hong Kong housing prices."

"When will this time be?" Xu Wenbiao frowned and said nervously.

If he can, he hopes that time will be faster. Hong Kong's manufacturing industry can no longer afford the current high housing prices. Just wait a year or two longer and Hong Kong's manufacturing industry will be completely swallowed up by real estate.

(To be continued.)