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Chapter 1100 Where did the money go

.The situation at that time. The central government was not very clear about the situation in the local area. The influence of Qianhuojia Zeqi was affected. Many local things were already deteriorated. At this time, the central government wanted to restore authority, but it still could not do without local support.

In a sense, the status of local officials at this time is real. They have considerable influence in the central government and are highly respected by the senior management.

The reason is that the local government itself has the financial power, while the central government needs to rely on the income of the local government to survive, and its dependence is too strong.

Under this lump sum system, local governments and central governments compete, and the information of both sides is asymmetric. Local governments have information advantages.

Although the central government has to modify the contract quota every few years and continuously increase the proportion and base of local governments to submit to the central government according to the situation, it is still difficult to deal with local governments.

This is what is called the proportion of local government extra-budgetary income is getting higher and higher, and it even collects a large amount of illegal extra-system income. The local governments become stronger and stronger and richer, and the so-called princely economy emerges.

The vassal economy did exist at that time, but the vassal economy was not necessarily a bad economy. Although local protectionism was a bad side, the vassal economy also had its good side.

Competition from local governments is one of the reasons why China's miracle was born.

There was a problem in the report provided by the imperial economic experts at the decision-making level of the China Fire at that time, that is, they assumed that local governments were evil, that is, self-interested, and the central government was good, that is, altruistic.

However, both local governments and central governments have the internal impulse to expand power and seek profit, mainly due to the lack of internal checks and balances and external constraint mechanisms.

In other words, they should assume that both are evil and then consider the government's checks and balances required by the country. But they did not have such awareness at the time, but believed that if local governments were allowed to continue doing this, China would disintegrate like Yugoslavia.

In fact, we cannot see this way. If it really leads to disintegration, it will be a military problem. As long as the central government can support and control the army, it can control the promotion and appointment of local government officials. It is impossible for other governments to disintegrate.

This unified vertical system in China obviously has a natural fear of the weakening of the central government's control capabilities.

At that time, China was in the stage of transformation and needed a lot of fiscal expenditure, especially to raise a lot of state-owned enterprises that were losing money. Therefore, in the early 1990s, the strategy of focusing on the big and letting go of the small was proposed. Before that, some places had quietly reorganized local state-owned enterprises. There was a large-scale reorganization of township collective enterprises around 1992, and the second time was carried out around 1997. After these two times ended, there were basically not many township collective enterprises left, and basically all the changes were almost gone.

The driving force for reform at that time was the comprehensive consideration of the tax revenue and profits obtained by the government from enterprises and the government's enterprise management costs. State-owned enterprises, local and township collective enterprises that were losing money not only had to make up for financial holes, but also had to support so many people.

Then the government will show private enterprises. It is very good. There is no burden at all, and you can enjoy the benefits. Just collect taxes. At that time, there was even a phenomenon of selling even if township enterprises and state-owned enterprises are doing well. This phenomenon occurred because privatization has become a tool for competition in local government systems, and also an image tool for local government officials to boast of ideological liberation, political enlightenment and attract foreign capital.

From the perspective of tax distribution and share sharing, after the tax sharing reform, the central government collected the bulk of the tax and some of the most easily collected taxes. Local governments only received less than 50% of fiscal revenue. However, they had to bear more than 80% of expenditure responsibilities, and the power of affairs and financial power were seriously incompatible.

This part of the local budget gap is mainly solved through central transfer payments. For a giant transition country like China, most of the expenditures have always been borne by local governments. The central government has no way to directly implement many expenditures, and can only be made through transfer payments.

That is to say, although the tax sharing reform at that time was an innovation based on the original system, it was not a tax sharing system in the strict sense. The result of this tax sharing resulted in the general budget of local governments relying heavily on transfer payments. The central government had a lot of income and not much income spent, and a large amount of it was transfer payments. For more than 40 yuan per 100 yuan spent by local governments were transferred payments by the central government.

There are two types of transfer payments, one is called general transfer payments and the other is called special transfer payments. General transfer payments are often relatively transparent and calculated based on formulas, such as funding gaps in compulsory education, public health, etc., which can be easily calculated based on the capping standards.

Special transfer payments are related to the special funds mastered by many central departments, and their use is opaque and vulnerable to the money from local governments and enterprises.

However, both of these problems are problems. First, general transfer payments are more comprehensively considered by local governments. They are easily concentrated for food finance, and basic public services may still lack funds. Secondly, transfer payment channels are too long and intercepted layer by layer. For example, higher-level governments often use transfer payments for other purposes or deduct tax arrears from lower-level governments. This situation will cause greater harm to backward areas. Secondly, many backward areas mainly rely on central transfer payments, no longer focus on cultivating and utilizing local financial resources, forming local independent personality deficiency, and therefore local governments lose their endogenous vitality.

Therefore, in fact, Boss Zhu is not very satisfied with the tax sharing reform and believes that it has not been completely changed.

However, for the senior executives at that time, this change was the most appropriate, because the central government had financial wealth and money, and it became richer and more powerful, and it worked, and someone listened to it. There was no need to worry that the local government would be disobedient, nor did it worry that the princes would have an economy, and the back would be much harder.

In this way, even if Zhu Laocun is determined to deepen the tax sharing reform, he is unable to promote this work to a deeper level.

Especially now that he is facing a short time change, Boss Zhu himself knows that he will definitely have no position in the next government. At this time, he is in a big fight and will inevitably be considered by some people to have ulterior motives. Therefore, the continued deepening of the tax sharing system cannot be put on the agenda.

But just leaving this one and a half-finished project, Boss Zhu was not very happy. He always wanted to leave a better foundation for his successor. Therefore, when Fan Heng mentioned a little about plugging the loophole in tax evasion before dinner at night, Boss Zhu immediately seized the breakthrough sensitively.

The people present tonight were all business people, and they were basically representatives of the business community with some status. The news that Boss Zhu seemed to be plain and said about crackdowns and steals... Deletes. It would be different if it was in everyone's ears.

Some people think that this is Boss Zhu's blowing to everyone and showing the central government's attention.

Therefore, when Boss Zhu was very particular and everyone started the dinner, many people came to their close friends and discussed this topic together, predicting whether the tax policies in the future will become tighter?

"Who is the young man next to Boss Zhu? He has a very good eye." Someone pointed at Fan Wubing and asked someone.

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

.

"He is Fan Wubing?" The man immediately took a breath of air conditioning.

In fact, there are still many people who have dealt with Fan Wubing. Although there are not many people who dare to go to Boss Zhu to carefully ask about the policy of combating tax evasion, there are many people who can talk to Fan Wubing. Therefore, when Boss Zhu sat down to talk to several older business veterans, many business people who had contacted Fan Wubing surrounded him and inquire about the inside information about this matter from Fan Wubing.

"Does the government take major actions to crack down on tax evasion?"

"Will the tax law be revised?"

"Will the issue of corporate tax avoidance be covered in this campaign to combat tax evasion?"

"Does the government have specific operational plans, such as how many billions of work goals are planned?"

Everyone's questions were talkative and the design content was very extensive. Fan Wubing smiled and listened to everyone's questions, then raised his hand and waved it, indicating that everyone was quiet, "I don't know much about this matter than everyone. But when it comes to the disadvantages of tax evasion, it is obvious. This kind of behavior not only harms national interests, but also poses a serious threat to us law-abiding operators."

This is a bit exaggerated? Everyone looked at each other and thought to themselves that they knew your father was Vice Premier Fan, but there was 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, it will have no impact on you?

Even if you want to sing a high-profile, there is no need to put yourself in it, right? Besides, everyone knows that if Fan's Investment Group has doubts about this policy, its huge influence is enough to allow many companies to follow suit and indirectly affect government decisions, so that they can consider and make careful decisions when introducing this policy.

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

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

What's more, considering Vice Premier Fan Heng behind Fan Wubing, Fan Investment Group will not be able to destroy Boss Zhu's platform no matter what. If that is the case, it would be equivalent to Fan Wubing's platform that his father Fan Heng.

"The key is that everyone has different positions." Some people sighed in their hearts. It seems that it is unrealistic to expect Fan to make a comeback, but except for a behemoth like Fan Investment Group that can raise public doubts, no company dares to show different attitudes on this issue.

Even if some people have different opinions, their influence is limited. Not only will it be useless, but it will also cause unexpected results for themselves. Therefore, no one dares to say no to this issue.

.

Fan Wubing can naturally guess what everyone thinks, so he certainly has to make a statement about the harm of the problem of tax evasion. So he said, "You may not have calculated carefully. Now the domestic tax revenue is about 1700 billion yuan per year, and the loss of tax evasion is about 500 billion yuan. What is this concept?"

Seeing that everyone had no reaction, Fan Wubing opened his mouth and said, "I'll give an example, take the current education as an example."

"A century-old plan. Education is the basis. The rise and fall of the country depends on education. Although the truth and reputation are endless, people have difficulty in taking care of it. Because the cost of education has filled people's minds, the government is worried about the increasing demand for education funding, schools are worried about how to raise more funds, and parents are worried about the countless educational expenses." Fan Wubing said with some emotion, "I guess you don't need to worry about this, but many ordinary people want to know how much money has been invested in education? Why are many children still unable to afford to go to school?"

When Fan Wubing mentioned this sensitive issue, it immediately attracted everyone's attention. After all, the topics of education, medical care and real estate are the most concerned issues for everyone now. But listening to Fan Wubing's tone, it seems that he is preparing to reveal the news.

Boss Zhu was chatting with someone there, and at this time he noticed the situation on Fan Wubing's side. He thought to himself that this guy was about to say something deafening. It seemed that there were many people paying attention to it!

"This year, the total investment in formal education in the country is about 920 billion yuan. The total investment in education in the country is divided into three parts. National fiscal appropriations, social school funds, and student family education expenditures, referred to as state investment, social investment, and individual investment." Fan Wubing said, "In today's society, the main investors in education in most countries are the government, especially junior middle school education. The proportion of residents burdens is less than 8% in the world, while the reality in the country is far from this. This year, of the total investment in education of 920 billion yuan, the country's investment is about 310 billion yuan, accounting for one-third, which is slightly higher. Social investment is about 35 billion yuan, accounting for less than 4%, while individual investment is about 580 billion yuan, accounting for 63%.

"Oh one" The audience expressed their understanding. No wonder everyone was shouting that it was difficult to go to school and that personal investment took up the big part, so of course they couldn't afford to go to school.

"So where did the money go?" Fan Wubing spread his hands and said, "The taxes lost in tax evasion every year are about 500 billion yuan. If the 500 billion yuan is recovered and used to offset personal education investment, the personal investment will be directly reduced to 80 billion yuan! That is, less than one-seventh of the personal investment is now!"

"Wow" the listener exclaimed again, not expecting that the impact of tax evasion was so great.
Chapter completed!
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