Steel, Guns and the Industrial Party Across the World Chapter 515

"or…"

Paul scanned the officials of various departments present one by one with his eyes.

"Should we cut the budget of a certain department?"

There was silence in the conference room.

"No! Graham-sama."

Hansel took the lead in breaking the silence, "I think it is imperative to abolish the tax system."

"Yes, the old system is out of date."

"We unanimously agree with Graham Lord's wise decision."

Others also reacted one after another.

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?

bidige

"Master Graham."

He asked carefully, "Are you going to raise the tax rate?"

Paul asked blankly, "Raise the tax rate?"

Hansel made an assumption, "For example, each head in the territory needs to be handed over to the lord 100 copper shields. When the taxpayer is present, each person collects 110 copper shields, and he gives 100 of them to the lord. Lord's Mansion, the remaining 10 copper shields are reserved for yourself. Now you have canceled the taxpayers and directly collected 100 copper shields. as much."

Paul laughed out loud. He pointed his finger twice in Hansel's direction 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 are justified, but in theory, without the taxpayers taking advantage of it, the people can keep more money in their hands. The extra money stimulates their desire to consume, thereby promoting the prosperity of the market, which means that more goods will be circulated and more products will be manufactured, and the taxes we can collect in commerce and industry are as much as More."

It turns out that this is the case, and many people understand it in their hearts.

"The abolition of taxpayers is only the first element of reform."

Paul continued: "The second part of the reform is to change the tax from head to property tax and income tax."

Everyone knows the poll tax. People in the territory, regardless of men, women, young or old, rich or poor, are counted by head, and everyone has to pay a certain amount of property. Stable and the most basic source of taxation, 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, you have to pay taxes to the lord for inheriting your parents' property, and 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 Graham, so everyone should lead by example, provide psychological counseling to the staff in their departments, and pay more attention to their words."

"It's going to be a huge tax bill!"

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, everyone at the meeting had 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, wouldn't the gain outweigh the gain? It is just a name, what is the significance of the reform.

Count Graham must have other means.

"There is a third item in the reform!"

Unsurprisingly, Paul went on to announce.

"Whether it is property tax or income tax, we will implement a stepped tax rate in the future."

Tiered 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~www.mtlnovel.com~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 tax."

"In short, it is to divide the income into steps. Each step has a different tax rate. People with low incomes pay less or even no taxes. People with high incomes pay more taxes. The more income they have, the more they have to pay."

"Of course, the tax brackets and tax rates in my example above are all made up for the sake of illustration. How this ladder should be divided, and how much tax rate should be set for each step, needs to be studied in detail by the tax department. get conclusion."

As soon as Earl Gramain's words fell, there was a bang in the minds of everyone present, as if something had exploded.

Chapter end

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