Chapter 1260 - 712, Tax Pressure
Chapter 1260: Chapter 712, Tax Pressure
Black, it is indeed black.
The 1.3 trillion mentioned in the “Alliance Plan” is actually not much of a problem.
According to the Empire’s standard of one-tenth taxation, with a total population of ten trillion in the five-star systems, an annual tax revenue of one trillion is reasonable; the additional 300 billion comes from some worlds with higher levels of development, hence they pay a bit more tax.
There are quite a few planets within the Alliance with high levels of development, especially the two core circles of the Dragonhawk Star Domain that Gu Hang has managed for a long time: the Seven Horse Territory and the Yunluo Center, which are quite prosperous.
Some planets, with high levels of development, are required to pay higher taxes.
However, similarly, there are two Founding Worlds, Jindi Star and Alamita, that are tax-exempt; at the same time, two Battle Groups, Blood Shark and Phoenix, that have achieved meritorious service, can also claim tax exemptions for their home planets.
Previously, neither of them had Recruitment Planets. Having now achieved meritorious service, they can naturally request one, and the Central Empire has already approved this, with their locations set within the Alliance’s territory.
Although, their model is completely different from ordinary battle groups. The home planets are managed by the Alliance, and the planet’s income is also managed by the Alliance. Theoretically, they own the wealth of their home planets, but it is meaningless. What the Alliance gives them is far more than what their home planets produce.
Ordinary battle groups also need to expand their influence, using the home planet as the core, radiating to the surroundings, letting dozens to hundreds of planets supply their development, maintaining a good balance; it is impossible to solely rely on an uncertainly wealthy or poor planet to supply all the needs of a battle group.
Gu Hang need not worry that these two battle groups will become infiltrating sand from the central empire.
Phoenix is absolutely impossible.
Blood Shark is unlikely as well. Not to mention that, within this battle group, one-third is already new blood provided by the Alliance; they do not want to return to the Dark Outer Domain, and want to develop well within the borders, contending for influence with the Alliance is meaningless, as the Alliance can easily lock them down.
Following the Alliance has become their only path.
Unfortunately, the Spear of the Dragon King, Furyflame, and New World Torch, all three have been sentenced to penance expeditions. The latter two with a penalty of a 200-year expedition period; the former is much less, only fifteen years. But even the smallest Spear of the Dragon King has been stripped of ownership of their home planet.
Of course, on their home planet in the Thistle Muster Star Field, although nominally no longer theirs, Gu Hang still allows them to station and operate there long-term.
The current income of these three groups relies entirely on Alliance support.
They also rely on the protection of the Alliance to avoid truly facing desperate battles like other penance expedition groups.
But they can’t provide the Alliance with tax exemption quotas.
So be it. The two Founding Worlds and two Recruitment Worlds, the tax exemption quotas they can provide are not insignificant in absolute terms, after all, if the Founding Worlds were taxed according to their level of development, it wouldn’t be low; Gu Hang will also give the two more developed Recruitment Planets exemption quotas which need to be utilized properly.
The combined tax amount, possibly around a thousand billion or so.
Say what you will, but compared to the entire tax amount the Alliance is required to pay, it… only slightly eases the pressure, and the effect is not significant.
However, overall, according to the “Alliance Plan,” the biennial tax settlement involves three hundred billion in the first year, five hundred billion in the second year, combine to eight hundred billion in taxes, which is actually quite manageable.
Even, it is relatively easy.
Just the Dragonhawk Star Domain, by accounting for the taxes, and taking out the fiscal surpluses of the two years, would cover it with plenty left over.
And under the stimulus of war, under the constraint of taxation, the Alliance’s developmental strength will rise rapidly in the coming years; with the advancement of reconstruction works, other star systems will also gradually show potential.
Completing the taxation goal of 1.3 billion ultimately is just somewhat challenging, but actually not at all.
The dual-level governments at the Star Domain and Cosmos Domain levels need funds for their own developmental use, though some have been handed over, they are quite confident that the Alliance’s developmental speed will surpass everyone’s expectations. After offering this sum, there will also be enough resources for their own development.
For the normally high tax costs within general imperial regions, the Alliance has even less pressure.
The administrative efficiency of the Alliance is considerably high.
Although, when a political entity reaches a scale of four thousand worlds, more than half of which has been acquired within the last fifteen years, with all sorts of issues; the population scale within the political entity reaches the trillion level… with such a size, achieving absolute efficiency is unrealistic.
But whether it is efficient or not is a comparative matter.
Although Gu Hang is dissatisfied with the inevitable bloating and inefficiency following the expansion of the Alliance Government, and does not shy away from stating that corruption issues within the Alliance, although constantly suppressed, cannot be eradicated.
Nevertheless, despite many issues, as long as the comparison target is the overall situation of the Empire, the Alliance immediately becomes a high-efficiency and clean system.
The cost of taxes would never reach the dreadful level of 60% usually speaking;
In the context of unified collection, management, and transportation, the Alliance can keep losses below 10%, even 5%.
Completely fine.
Moreover, the Alliance possesses a condition that other imperial forces fundamentally lack — two Founding Worlds that Gu Hang can now claim complete control over. These two Founding Worlds’ output can also be utilized by the Alliance, contributing to the Alliance’s tax revenue.
However, what Xu Fuzhen mentioned about handing over the entire Spiderweb Domain to Gu Hang, letting Gu Hang be the chairperson, and raising the tax standard to 2.1 billion a year… that’s where the pressure becomes significant.
Primarily because, besides the three star systems, Proud Claw, Thistle and Mustard, Alfonso which the Alliance had previously captured, the other regions of the Spiderweb Domain are completely devastated.
The Alliance is so reliable; once conquering an area, it governs that area. With the threat of the Insect Race, the Pest Control Office is established for local governance; although prior to finalizing its status, along with the Alliance’s main focus still on the war, no direct inputs were made in the regional economic and political reconstruction. But honestly, as long as governance keeps up, and there is no haphazard meddling, many worlds, even without external support, would merely recover a bit slower.
What governance experience does the Alliance have?
Setting aside those little insights, techniques, and methods.
The most core theory: do not meddle haphazardly, just carry out normal operations.
Just this point already surpasses countless places.
The reason for such obvious contrast is because many places are meddling haphazardly.
Like the previously mentioned other places in the Spiderweb Domain.
They are complete burdens, and yet to let Gu Hang bear an additional 800 billion/year tax obligation, that pressure is massive.
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Posting one Chapter, more to follow later.