Chapter 515： tax reform fourth

"Or..." Paul glanced at the officials of various departments present one by one. "Should we cut the budget of a certain department?" There was silence in the conference room. "No! Lord Graeman." Hansel took the lead to break the silence, "I think it is imperative to abolish the tax system." "Yes, the old system is outdated." "We agree with Greeman Master Man's wise decision." Others also reacted. Cut departmental budgets? This is simply intolerable. The current Government Council is rapidly expanding its scale, and everyone is desperately recruiting jobs for their own departments to highlight the importance. It cannot be done without sufficient budget. Who wants to sit on the bench with a shrinking budget? Obviously, no one here is willing. In contrast, it is better to let those old landlords in the countryside lose their money. In fact, Earl Gramain's dislike of the tax system is well known in the Government Council. The Earl has expressed his dislike many times in different places and at different times, so his decision today did not make everyone feel too sudden. . However, Hansel quickly discovered a problem, even if the taxpayer system is abolished, can more taxes be collected? "Master Graeman." He raised his question carefully, "Are you going to raise the tax rate?" Paul asked blankly, "Raise the tax rate?" Hansel made a hypothesis, "For example, every head in the territory needs to Give 100 copper shields to the lord. When the taxpayer is present, each person will receive 110 copper shields. He will give 100 copper shields to the lord's mansion, and keep the remaining 10 copper shields for himself. Now you The taxpayer was cancelled, and 100 copper shields were collected directly, but from our side, we actually got the same amount as before the cancellation of the taxpayer.” Paul laughed heartily, pointing his finger at Hansai He nodded twice in the direction of Er, and said: "This is indeed a problem. Fielding, my tax director, what do you think?" Fielding thought about it, and then explained to everyone: "Sir Abbott's doubts It makes sense, but in theory, without taxpayers taking advantage of the middle, people can keep more money in their hands, and the extra money can stimulate their desire to consume, thereby promoting the prosperity of the market, which means As more goods circulate and more products are manufactured, the more taxes we can collect in commerce and industry." So many people understood it in their hearts. "The abolition of tax collectors is only the first part of the reform." Paul continued: "The second part of the reform is to change the taxation by head to property tax and income tax." Everyone knows the poll tax. The people in the territory, regardless of men, women, old or young, rich or poor, high or low, are counted by head, and everyone has to pay a certain amount of property. This is the most stable and basic tax source for the lords of Aldo and even His Majesty the King, so The size of the population in the territory determines whether a lord is strong or not. The king directly has the largest population in the territory, so the king is the most powerful "lord" in the whole country. It’s just that Arda has vigorously developed industry and commerce in recent years, and has levied taxes on commodities and manufactured products circulating in the city, so the head tax here has been reduced to a less conspicuous position—after all, people cannot be produced continuously like products in factories However, the poll tax is still one of the important tax sources of the Government Council. As for property tax, in fact, this era has already existed, and it is very common. You have to pay taxes to the lord for the house you live in, you have to pay taxes to the lord for the land you plant, and you have to pay taxes to the lord for inheriting your parents’ property. There are even livestock taxes. Animal tax, window tax, stove tax and other messy taxes, some territories even have to pay taxes to the lord if you have a cat or dog. When Hansel first worked under Paul, one of his most important tasks was to check the properties in the territory, which offended many people. After Paul got the important tax source of industry and commerce, he canceled most of the taxes that he found ridiculous, and only kept a few taxes such as land tax, property tax, and inheritance tax. This is why Arda is more attractive than other territories. important reason for migration. As for income tax, this is the first time that everyone here has heard of it. Paul explained to everyone that taxation is based on the profits earned by individuals or groups, such as income from wages and salaries, income from production and operation of industrial and commercial households, income from contracted operations and leased operations, income from labor remuneration, interest, income from share dividends, and property leases. Income, income from property transfers, etc. "In the future, everyone here and your subordinates will have to pay taxes on the salaries they receive in their positions." Paul first reminded everyone. Old Ford said with some concern: "This may cause some people to complain about Lord Graeman, so everyone should lead by example, and provide psychological counseling to the staff in their departments, and pay more attention to their remarks." This will be a huge tax!" Hansel made a rough estimate in his heart, and couldn't help being a little speechless. But yes, Earl Gramain canceled so many miscellaneous taxes and poll taxes, and now that he is in financial difficulties, what should he do to make up for it in other ways? Wait, but the poll tax has been abolished. Whether this income tax can fill in the loopholes and achieve tax revenue growth still has to be concluded in practice. Not only Hansel, but every attendee has similar doubts in their hearts. If the property tax and income tax cannot make up for the loss of the abolition of the poll tax, UU Reading will not be worth the loss, even if it can be equal to the poll tax , that is just a change of name, what is the significance of the reform. Count Graham must have other means. "There is a third item in the reformation!" Unsurprisingly, Paul continued to announce. "Whether it is property tax or income tax, we will implement stepped tax rates in the future." Stepped tax rates? This is the first time everyone has heard of this description. Except for McLone and Old Ford, who agreed with Paul on the content of the reform, everyone looked puzzled. "Let me explain to everyone." Paul explained to everyone, while observing everyone's expressions. "Taking personal income tax as an example, a person's income is his tax amount. If his monthly income does not exceed 1 silver shield, then he does not have to pay tax. If his monthly income is between 1 and 5 silver shields, then He will pay 2% tax, if his monthly income is between 5 and 10 silver shields, then he will pay 5% tax, if his monthly income is between 10 and 20 silver shields, then he will pay 5% tax. To pay 10% tax, if his monthly income is between 20 and 50 silver shields, then he will have to pay 20% tax, if his monthly income is more than 50 silver shields, then he will have to pay 40% tax Taxes." "In short, it is to divide income into steps, and each step has a different tax rate. People with low incomes pay less or even no taxes, and people with high incomes pay more taxes. Many." "Of course, the tax payment ladder and tax rate in my example above are all made up for the sake of illustration. How this ladder should be divided and how many tax rates should be set for each step still need to be approved by the tax department. Only through detailed research can we draw conclusions." As soon as Earl Graham finished speaking, there was a bang in the minds of everyone present, as if something had exploded.