Chapter 110: Where Did the Money Go?

[Please keep in mind the domain name of this site" ", or search in Baidu: Sanlian Literature Network]

At that time, the central government was not very clear about the local situation. Due to the influence of the Cultural Revolution, many local things have been eroded, and the central government still cannot do without the support of the local government if it wants to restore its authority.

In a sense, the status of local officials at this time is real, has considerable influence in the central government, and is also very respected by the high-level.

The reason for this is that the local governments themselves have financial power, while the central government needs to rely on the income of local governments to survive, and it is too dependent.

Under this kind of lump sum system, the local government and the central government play a game, and the information of the two sides is asymmetric, and the local government has an information advantage. Although the central government has to revise the contract quota every few years and constantly increase the proportion and base amount of local government to the central government according to the situation, it still cannot deal with local governments.

This is the so-called local government's proportion of extra-budgetary income is getting higher and higher, and even a large amount of illegal extra-institutional income is being collected, and the local government is getting stronger and richer, and the so-called princely economy has emerged.

At that time, the princely economy did exist, but the princely economy was not necessarily a bad economy. Although local protectionism is the bad side, the princely economy also has its good side.

The competition of local governments is one reason for the Chinese miracle.

One of the problems in the reports provided by the royal economic experts at the central decision-making level at that time was that they assumed that the local government was evil, that is, self-interested, and that the central government was good, that is, altruistic.

However, both local governments and the central government have an inherent impulse to expand their powers and pursue profits, mainly due to the lack of internal checks and balances and external constraints.

That is, they should assume that both are evil, and then consider the rules of checks and balances of government power that are needed domestically. But they didn't have that kind of realization, but thought that if the local government continued to do so, China would disintegrate like Yugoslavia.

As a matter of fact, we cannot look at it this way, if it really leads to disintegration, it is a military problem, and as long as the central government can maintain and control the armed forces and can control the power to promote, appoint, and dismiss senior local government officials, it is impossible for the local government to disintegrate.

The vertical system of large-scale unification in China obviously has a natural fear of the weakening of the central government's ability to control.

At that time, China was in a stage of transition, and it needed a lot of fiscal expenditure, especially to raise a lot of loss-making state-owned enterprises, so in the early nineties, it put forward the strategy of grasping the big and letting go of the small, and some places had quietly carried out the restructuring of local state-owned enterprises. Around 1992, there was a large-scale restructuring of township and town collective enterprises, and around 1997 there was a second one.

At that time, the impetus for reform came from the government's consideration of the tax revenues and profits obtained from enterprises and the government's cost of managing enterprises. Loss-making state-owned enterprises. Local and township collective enterprises must not only make up for the holes financially, but also support so many people.

Then the government found that it was good to develop private enterprises, without any burden at all, and to sit back and enjoy the benefits, just collect taxes. At that time, there was even a phenomenon that township enterprises and state-owned enterprises sold even if they did well. The reason for this phenomenon is that privatization has become a tool for competition in the local government system, and it has also become an image tool for local government officials to flaunt ideological emancipation, political enlightenment, and attract foreign capital.

From the point of view of tax distribution and sharing, after the reform of the tax-sharing system, the central government has collected the bulk of the tax revenue and some of the most easily collected taxes. Local governments only receive less than 50 percent of fiscal revenue, but they have to bear more than 80 percent of the responsibility for expenditure, and there is a serious mismatch between administrative power and financial power.

For a giant country in transition like China, most of the expenditures have historically been incurred locally, and the central government has no way to directly implement many expenditures, so it can only be carried out through transfer payments.

In other words, although the reform of the tax-sharing system at that time was an innovation based on the original system, it was not a tax-sharing system in the strict sense. As a result of this tax sharing, the general budget of local governments relies heavily on transfer payments, and the central government has a lot of revenue and not much money to spend. A large number of them are transfer payments, and for every 100 yuan spent by local governments, more than 40 yuan is transferred by the central government.

There are two types of transfer payments, one is called general transfer payment and the other is called special transfer payment. General transfer payments tend to be more transparent and calculated according to formulas, such as funding gaps in compulsory education and public health, which can be easily calculated by the central government based on the capitation criteria.

Special transfer payments are linked to special funds held by many central departments, and their use is not transparent, and they are easily affected by the money of local governments and enterprises.

But there are problems with both, the first is that general transfers are more often considered by local governments as a whole, and are easily concentrated on food finance, and basic public services may still be underfunded. For example, higher-level governments tend to divert transfer payments for other purposes or offset the tax arrears of lower-level governments, which is more harmful to backward areas. Thirdly, many backward areas mainly rely on central transfer payments, and no longer pay attention to cultivating and utilizing local financial resources, resulting in local independent personality deficiency, and local governments lose the vitality of endogenous development.

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

But for the high-level at that time, such a change was the most appropriate, because the central government had money in the finances, and with money, it would be rich, and what it said would be effective, and someone would listen to it, so there would be no need to worry about the disobedience of the local government, and there would be no need to worry about the emergence of a princely economy. The waist bar is also much stiffer.

In this way, even if Boss Zhu has the intention to deepen the reform of the tax sharing system, he is no longer able to promote the in-depth development of this work.

Especially now that he is facing the change of office in the near future, Boss Zhu himself knows that there will definitely be no place for himself in the next government, and it is inevitable that some people will think that he has other intentions at this time, so the continued deepening of the tax sharing system can no longer be put on the agenda.

But leaving this half-pulled project to leave, Boss Zhu's heart was not very happy, he always hoped to leave a better foundation for his successor, so when Fan Heng mentioned a little before dinner at night to plug the loopholes of tax evasion, Boss Zhu immediately sensitively grasped this breakthrough.

The people present tonight are all people from the business community, basically all of them are representatives of the business community with some status, and the news about cracking down on tax evasion and tax evasion that Boss Zhu said seemingly very plainly fell in everyone's ears, so it was not quite the same.

Most people think that this is Boss Zhu blowing the wind to everyone and expressing the attitude of the central government.

Therefore, when Boss Zhu finished speaking and everyone started the dinner, many people ran to their acquaintances to discuss this topic together, predicting whether the future tax policy will become tighter?

"Who is the young man next to Boss Zhu, his eyes are very good." Someone pointed to Fan Wuxian and asked others.

"You don't even know the famous boss of Fan's Investment Group?" Immediately someone expressed surprise.

"He's Fan Wuxi?!" The man immediately gasped.

In fact, there are still many people who have dealt with Fan Wuxi, although there are few people who dare to go to Boss Zhu's side to carefully inquire about this policy of cracking down on tax evasion and tax evasion. But there are many people who can talk to Fan Wuxi, so when Boss Zhu sat down to talk with several older business veterans, many business people who had been in contact with Fan Wuxian came over and asked Fan Wuxian for inside information about this matter.

"Will the government take more action to crack down on tax evasion?"

"Will the tax law be revised?"

"As for the issue of corporate tax avoidance, will it also be included in this crackdown on tax evasion?"

"Does the government have a specific operational plan, such as how many billion work targets are ready to be set?"

Everyone's questions are gossiping, and the design content is extremely extensive, Fan Wuxian listened to everyone's questions with a smile, and then raised his hand and waved, signaling everyone to be quiet. "I don't know much more about this than you do. However, when it comes to the disadvantages of tax evasion, it is obvious that the existence of this kind of behavior not only harms the interests of the state, but also poses a serious threat to us law-abiding operators. ”

That's a bit of an exaggeration, isn't it? Everyone immediately looked at each other, and said in their hearts that they know that your father is Vice Premier Fan, but there is no need to speak for the government like this, right? After all, you yourself are the largest industrial and commercial tycoon, and if the tax policy is tight, will it have no impact on you?

Even if you want to sing a high note, you don't have to put yourself in it, right? Moreover, if Fan's Investment Group is skeptical about this policy, its huge influence is enough for many companies to follow suit, and indirectly influence the government's decision-making, so that they can consider and make a prudent decision when introducing this policy.

However, now Fan Wuxian seems to have formed a consensus with Boss Zhu.

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

What's more, considering Vice Premier Fan Heng behind Fan Wuxi, it is impossible for Fan's Investment Group to demolish Boss Zhu's platform no matter what, if that is the case, it will be equivalent to Fan Wuxian demolishing his father Fan Heng's platform.

"The point is that everyone's position is different." Some people sighed in their hearts that it seems unrealistic to expect Fan's to come out, but apart from a behemoth like Fan's Investment Group, which can openly question, there are really no companies that dare to express a different attitude on this issue.

Even if a few people put forward a different opinion, their influence is limited, and not only will it not help, but it will also invite accidents for themselves, so there is really no one who dares to say that they can't say anything on this issue.

Fan Wuxian is naturally able to guess what everyone thinks in their hearts, so for this problem of cracking down on tax evasion, of course, he wants to bitterly state its harmfulness, so he said, "You may not have carefully calculated, now the annual tax revenue in China is about 1.7 trillion yuan, and the loss of tax evasion is about 500 billion, what is this concept?" ”

Seeing that everyone had no reaction, Fan Wuxian opened up and said. "I'll give you an example, let's take the current education as an example."

"The 100-year plan, education-oriented, the rise and fall of the country, tied to education. Although there are many wise sayings, people rarely have time to take care of them, because the cost of education has been stuffed in people's minds, the government is worried about the increasing demand for education funding, schools are worried about how to raise more money, and parents are worried about the untold amount of education costs. Fan Wuxian 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 there so many families whose children still can't afford to go to school? ”

Fan Wuxian mentioned this sensitive issue, which immediately attracted everyone's attention, after all, education, medical care and real estate are the topics that everyone is most concerned about today, and listening to Fan Wuxi's tone, it seems that he is ready to break the news.

Boss Zhu was chatting with people there, and at this time, he also noticed the situation on Fan Wuxi's side, and thought that this guy was going to say something deafening again, it seems that there are a lot of people who are concerned!

"This year, the total investment in formal education in the country is about 920 billion yuan, and the total investment in education in the country is divided into three parts, national financial allocation, social school running funds, and students' family education expenditures, referred to as national investment, social investment, and individual investment." "In today's society, the main investor in education in most countries is the government, especially in primary and secondary education, and the proportion of residents who pay less than 8 percent of the burden in the world is far from the same situation in China. This year, of the total investment in education of about 310 billion yuan, the state has invested about 31 billion yuan, accounting for a slightly higher one-third of the total, the social investment is about 35 billion yuan, accounting for less than 4 percent, and the individual investment is about 580 billion yuan, accounting for 63 percent. ”

"Oh-" The audience expressed their understanding, no wonder everyone was shouting that it was difficult to go to school, and that personal investment accounted for the majority, and of course they couldn't afford to go to school.

"So where does all the money go?" Fan Wuxian spread his hands and said, "The annual tax loss in tax evasion alone will be about 500 billion, if the 500 billion is recovered and used to offset personal education investment, then personal investment will directly drop to 80 billion!" That's less than one-seventh of what individuals put in now! ”

"Wow-" The listener exclaimed again, not expecting the impact of tax evasion to be so great.

"What's that concept?" Fan Wuxian looked around, and then said, "That is equivalent to the university with the highest tuition fee now, and the tuition fee for each student will be immediately reduced to a few hundred yuan!" At this time, will the people still have so many complaints?! ”

There are no pop-ups