Chapter 530 Zhu Kezang is the biggest victim (please subscribe!)

Author: Linjiang Jun

"And relax, a large amount of grain will soon enter Daming this year, and coal mines will also increase greatly this year."

How to do it?

The Ming Dynasty's Nanyang granary is about to have a bumper harvest. There is no shortage of food!

As for the coal mines, there is no need to worry. The Ming Dynasty has perfect steam engines, which will greatly increase the efficiency of coal mining. There are also cheap labor forces such as vassal state workers, bannermen captives, and Nanyang natives to help. I am afraid there will be no place to digest the dug coal!

Therefore, Zhu Kezang now has the confidence to invest in such a large amount of infrastructure.

After hearing what the emperor said, the sadness on Prime Minister Chen Yonghua's face was obviously gone.

Of course he was happy when his financial income suddenly increased so much.

Although 15 million taels were issued by the bank, if it could be filled with goods, it would be equivalent to the court making money in advance.

And it’s not over yet!

These millions of taels are just the income from land purchase. Those eight companies will still have to pay taxes after they start infrastructure construction.

For example, if Xu Dehai wanted to build roads in a commercial street, he would have to purchase cement in large quantities.

For example, if he purchases 200,000 silver dollars of cement, according to the Commercial Tax Law, the state-owned cement factory must pay 15% of the 200,000 silver dollars in tax.

That is 30,000 silver dollars.

Therefore, by doing this, the tax base will be expanded, and the tax amount will naturally increase.

Not only that, it also creates employment for a group of people and stimulates consumption.

It was Chen Yonghua who felt that Zhu Kezang was the one who suffered the most when the Commercial Tax Law came out!

Most of those state-owned and imperial-owned factories and companies are the property of Zhu Kezang!

The land sale on the first day of October ends at 3 p.m.

The news immediately spread quickly among the officialdom of Yingtian City.

"What! Sold out!" Hong Lei was so surprised that his jaw almost dropped, "Who bought it?"

This was not his only doubt. It would not be cheap to win those lands.

Everyone is willing to give the emperor face, but the money in their pockets does not allow it!

If you have tens of millions of silver dollars in your pocket, spending a tenth of them to please the emperor is a trivial matter.

Hong Lei was thinking: Could it be fake news? Is there really someone willing to go bankrupt and take out so much money?

Only in the evening did the accurate news get out.

Hong Lei shouted: "The bank is also involved! No wonder! No wonder! How could this happen! This is a trick of giving money from the left hand to the right hand! This is playing with fire and burning yourself!"

Why does Hong Lei say this is a trick of giving money from the left hand to the right hand?

When Yingtian New City sells land, it means those companies go to the Royal Bank to borrow money. The Royal Bank starts the minting and printing presses, prints the money to them, and then they pay the money to the Ministry of Accounts.

In other words, most of the money that comes to the account department is money given by the Royal Bank.

For example, this time, a total of 4.2 million square meters of land was sold, and the direct income of the Household Department was 16.8 million silver dollars.

Because land income is directly attributed to fiscal revenue and is not considered a tax.

The various taxes that follow may cost more than two million silver dollars. Of course, these are the affairs of the Imperial Taxation Administration.

The final total is almost 20 million!

This kind of gameplay was far beyond the expectations of Hong Lei and others. They did not expect Royal Bank to participate.

You know, if the Royal Bank lent so much money at once, if it couldn't get it back, it would cause big bad debts and trigger a financial crisis.

Hong Lei shouted: "This is bad government, this is bad government!"

On the night of the first day of October, the world view of almost the entire Yingtian capital officials was re-examined by the emperor.

Some people criticized Zhu Kezang for dancing on the edge of a knife.

Some people shouted that this was the wisest money-making technique in history.

Officials and emperors are both prosperous and suffer losses. If Zhu Kezang can't pay, won't they still suffer?

The Jinyiwei are pressing so hard. If they dare to reach out and take advantage of others and leave evidence behind, they will not be able to live in peace later.

The land sales under the first five-year plan have just begun, and a large-scale controversy is about to break out.

What was Zhu Kezang, the chief architect of the First Five-Year Plan, doing at this time?

He is still settling accounts.

Is the income from land sales just the money given by the businessmen to buy the land?

If you really think it's that simple, you're too young.

There are several other incomes here.

One is taxation.

The second is the interest on the loan.

Zhu Kezang does not make business taxation very complicated now, he just does not want to raise the cost of businessmen too high.

At least initially, business will be encouraged vigorously.

As long as there is a transaction here, it involves paying taxes. These companies have taken away the Royal Bank's money, which is basically used to build buildings and build roads.

Moreover, those who participate must have wages, and as long as the wages meet the standards of the new personal income tax law, they must also pay taxes.

Is this where taxes end?

not at all!

When you sell a house, that's your income. If you have income, you have to pay taxes according to tax laws.

This business model is feasible in this era, the prerequisite is that someone comes to buy a house.

So here’s the question. In this business model, Royal Bank also has income. This is the bank’s income. The bank’s expenses are in addition to the bank’s basic operating expenses, and the rest is the interest on people’s savings.

According to the current Royal Bank deposit interest rate, the bank is definitely making money.

Royal Bank has made money, what should it do?

Part of it is left for your own operation, and part of it is turned over to the national treasury.

After turning it over to the national treasury, it will of course be invested in people's livelihood construction and foreign export trade, so as to make more money to stimulate the development of other places.

Wait, it's not over yet.

People who buy a house have to pay interest when they take out a loan from the Royal Bank.

So will anyone be willing to buy a house next?

Suppose a house in an urban area costs 6 silver dollars per square meter. If you buy a 100 square meter house for 600 silver dollars and get a loan from the Royal Bank, the total repayment amount is 1,000 silver dollars. It will be repaid in 30 years. The annual repayment is 33 silver dollars and the monthly repayment is 2.75 silver dollars.

Can you afford it?

With the current income of the people of the Ming Dynasty, many people cannot afford it.

But some people can definitely afford it.

Many people can even buy it in full.

It's just that ordinary people can't afford it.

Then the problem comes again.

Ordinary people cannot afford to buy a house, only the rich can afford it. Doesn’t this run counter to Zhu Kezang’s efforts to improve people’s livelihood?

Here we need to understand an economic law.

When any new product comes out, it is only used by a small number of people.

Why?

Because it is determined by production capacity and technical level!

Production capacity determines the quantity and marginal cost of goods, and technology level determines the unit price cost of goods.

The urbanization of the New Ming Dynasty also had to follow this path.

While Hong Lei and others were crying and worrying about the collapse of the earth, the emperor was already happy.

The urbanization of the New Ming Dynasty has taken a stable step forward.

This is a small attempt at urbanization, and it is also a new way of income.
Chapter completed!