Vol 5 Chapter 59: , Untouchable inheritance tax

"If you want to get rich first build roads", this sentence was also applicable at the beginning of the 20th century. Don't look at Bulgaria's plans for a bunch of industrial projects. In fact, most of them have not yet started.
Is everyone waiting for the government to build roads? As long as the traffic problem is not resolved in one day, the big industrial plan is nonsense!
The local Balkan region has been developed very well. Ferdinand does not intend to continue to develop heavy industry here, while the development of other areas is very backward. Even the Asia Minor Peninsula, which has been operated by the Ottoman Empire for hundreds of years, has none. What a decent industry.
Since the Bulgarian army landed on the Peninsula of Asia Minor in 1916, road construction has already begun. At present, there are more than one million prisoners of war under the railway company, struggling for this great and sacred cause.
If you add prisoners, ordinary railway workers, industrial workers and technicians from supporting enterprises, and all the personnel of the Bulgarian Railway Company, it will exceed 2.6 million!
Now as soon as the Great Highway Project is launched, the Bulgarian road construction army will once again exceed one-tenth of the total population, to be precise, one-tenth of the registered population!
Such a high labor input ratio is naturally impossible under normal circumstances. Other industries in the country also need labor. Fortunately, this is a colonial era and cheap labor is available.
By the end of 1921, the population of Bulgarian residents with household registration had exceeded 48.76 million, of which more than 3.4 million were naturalized immigrants, and the rest were new population growth.
Perhaps it has been suppressed for a long time during the World War. Since 1919, the domestic baby boom has erupted, and the birth rate reached a peak of 5.18% in 1920. (Refer to Russian data)
This is also the peak since the founding of Bulgaria. According to estimates by experts from the Population Department, this wave of baby boom may last until around 1930.
This means that in the next ten years, Bulgaria’s population growth rate will remain between 3.1% and 3.8%. They are all optimistic about the population doubling plan within two decades.
As a price, the Chancellor of Finance cries poorly to Ferdinand every day!
From now on, the Bulgarian government will pay more than one million mothers’ wages during pregnancy each year, and the rural population has also been included in the budget.
According to the new labor law, the minimum wage in Bulgaria shall be no less than 75 lev per month and no less than 3 lev per day, which is 450 lev for half a year.
In this item alone, the annual expenditure exceeds 450 million lev! If you calculate the free medical expenses during the childbirth period and the incentive policy starting from the third child, for family planning, you will have to invest up to 700 million levs every year.
If the investment in this area is high, the investment in other areas will be low. There is no alternative. In the early 1930s, Bulgaria was also a properly developed country.
However, in terms of social welfare, Bulgaria will lag far behind European countries. Germans have established a universal pension system as early as the 1880s.
Since then, the era of human pensions has begun, and most countries in Europe have established pension systems. The establishment of Bulgaria's social pension system has long become a hot topic in society.
This problem has also plagued Ferdinand for a long time. At present, the most popular pension system in the world has funding sources: pension insurance and government financial appropriations.
The social pressure in the short term is not great. The average life expectancy in Bulgaria has just exceeded 65 years, and the age of the population has not yet arrived.
But the future will be in trouble. Perhaps in a hundred years, Bulgaria will not have to worry about pensions. Anyway, there is oil behind, and the government cannot be poor!
If Ferdinand was only the president of the country, he would be happy to do so, without thinking so far, to directly build a high-welfare society, hello, me, hello, everyone!
It is a pity that he is the king and must consider long-term. If oil resources are developed, or the birth of new energy replaces oil, what should Bulgaria do?
History has told him that a country that is over-reliant on resources, once the resources are exhausted, the entire society will immediately collapse!
As soon as Ferdinand smiled again, it seemed that this loophole could be plugged in advance.
Bulgaria is still a struggling country. Everyone has a strong sense of social responsibility. There are still very few people who are greedy for pleasure. If a shackle is set up in advance to limit the dependence of future generations on resources, it seems to be very troublesome!
...
After April Fools' Day, Ferdinand asked the whole society for opinions on establishing the Bulgarian pension system and also held a government seminar.
Prime Minister Constantine reported to Ferdinand: "Your Majesty, this is our government's plan for establishing a pension system, please have a look!"
Ferdinand took the document and did not open it, so he asked directly: "Let me talk about what kind of pension system the government intends to establish, where will the funds come from, and how is the distribution ratio calculated?
Cover the crowd, and who are there? How can we ensure the smooth implementation of this plan and long-term development! "
Constantine thought for a while and said: "The pension system planned by the government is mainly to learn from the three countries of Britain, France and Germany. We are currently preparing to implement pension insurance.
This means that young people pay old-age insurance funds and provide pensions to the elderly. Our government has calculated in detail that there are currently about 2.2 million people in Bulgaria who are over 60 years old.
According to the principle of fairness, we only need to pay pensions to people who have made contributions to Bulgaria, that is, people who have worked in Bulgaria for more than 20 years and have Bulgarian citizenship, this part of people only accounts for 1.8 million.
According to the current minimum wage standard in society, a total of 1.62 billion levs will be required to pay pensions.
At present, the number of young men and women of school age in the country is as high as 23 million. If calculated according to 1.62 billion levs, then each person only needs to pay 71 levs.
This is less than their monthly salary, which is completely within everyone's tolerance! If the cycle continues, we can adjust the pension insurance according to the actual situation! "
Looking at such a simple and rude pension system, Ferdinand shook his head helplessly, and then said: "Your Excellency, have you considered whether the life expectancy in Bulgaria is 65 years, but in 1889, Bulgaria was at that time. The average life expectancy is only 52 years!
If nothing happens, you will be surprised to find that within ten years, our average life expectancy will exceed 70 years, and in 20 years, our average life expectancy may reach 75 years!
As the average life expectancy continues to increase, the demand for pensions in the society will also rise sharply. The rapid growth of our population cannot continue indefinitely. What should we do once an aging society comes?
I also want our citizens to have little economic pressure on the surface, and everyone’s life is pretty good, but don’t forget that they also need to raise children. It’s not uncommon for two adults to raise four, five, or even seven or eight children. .
The rewards and subsidies provided by our government now seem to be enough for them to raise their children in the short term, but don’t forget the existence of inflation. As the economy develops, price increases are inevitable.
We cannot guarantee that the income of each of them can rise simultaneously. The current pensions don't seem to be too much, but what about the future?
1.8 million people are now receiving pensions. Ten years later, it will be 3.8 million or even 4 million receiving pensions. However, it is impossible for our payers to double in ten years!
And this payment base will continue to increase? What should we do if we wait for decades to come when the population is aging?
If one day, our society becomes four generations under one roof, or five generations under one roof, what should we do?
Ten young people raise one old man, everyone can afford it, and five young people raise one old man, and everyone can afford it, but one young man raises several old people, it is estimated that this will force our offspring to death!
Don't rush to deny this possibility. With the deepening of industrialization, the decline in the birth rate is also inevitable. At the same time, the population carrying capacity of the earth is also limited. It is also inevitable that this will happen someday in the future! "
Constantine was dumbfounded, and everyone was dumbfounded. He thought it was just a simple problem, but now it has become such a complex social problem.
What should I do? Ferdinand didn't know what to do! Relying on the social pension insurance system will certainly not be able to solve Bulgaria’s future pension problems, unless the average life expectancy of the whole society is reduced, or the payment period is continuously increased and the pension payment period is reduced.
In that case, it is better to open this issue directly to the whole society, and let the Bulgarian people decide whether to establish this pension system!
That's right, Ferdinand doesn't plan to jump high in the huge pit of welfare. It is only the beginning of the 20th century. The wealth created by the whole society is limited and it is impossible to endlessly improve social welfare.
The pension system still needs to be established, but the payment standard cannot be as high as the outside world guessed. With the development of social economy, the social wealth consumed by human beings on the issue of food is becoming more and more limited.
Therefore, the establishment of a pension insurance fund with a minimum living guarantee is in line with the actual situation in Bulgaria, but to establish a pension system that is equivalent to the income of ordinary workers, then it is unnecessary to talk about it, he does not want to pit his descendants!
Whether or not to pay for the pension insurance, this issue is left to the people to decide. It is really not possible for the government to establish a rescue agency in the future.
Seeing everyone's stunned expressions, Ferdinand knew that these issues were not in their consideration. No way, this is also the reality. How many politicians will consider issues in the next few decades?
If everyone considers so long-term, Europe will not decline in future generations. Most countries are dragged to death by high welfare!
"Well, I hope you will study this issue in depth, consider the issue more comprehensively, and explain the situation to the whole society at the same time, to see who has any good solutions to solve this problem!" Ferdinand said again.
The Chancellor of the Exchequer Kennedy thought for a while and said: "Your Majesty, can we solve this problem through taxation?
For example: collect personal income tax and achieve this goal by increasing the taxation of high-income groups, without transferring this burden to the whole society! "
Ferdinand shook his head and said: "Personal income tax can be collected, but solving the pension problem by this is tantamount to idiotic dreams!
And it is very troublesome. Perhaps the money received is not enough to pay tax staff!
We simply can't supervise it. Some capitalists have ways to avoid taxes, personal income taxes, and in the end they can only collect part of the middle class money!
For example: What if the company does not pay dividends? They even gave themselves an ultra-low salary of 1 lev, and put all their profits on the corporate accounts. All their expenses can be spent on the company's account without affecting their daily lives at all!
You can never collect personal income tax according to his company's finances, right? "
Kennedy said unwillingly: "What if an inheritance tax is imposed?"
Ferdinand shook his head and said: "Inheritance tax must not be collected!
The collection of inheritance tax will cause very bad social impacts, and even affect the stability of Bulgaria!
We now want to encourage everyone to invest in industry. If the government wants to levy an inheritance tax, who would dare to invest in industry?
Once the assets become real estate, your inheritance tax rate is slightly higher, and the heirs can't pay taxes on the cash, what should you do?
Should the company go bankrupt directly? Or is it that the government can still accept the failure of shares? If this is the case, it may not be long before we are left with our state-owned enterprises in Bulgaria!
More often, the capitalists signed an inheritance treatment agreement before they were alive. For example, if they sell the enterprise at a price of one lev, is this tax still necessary?
Of course, we can also collect according to the actual value of the company, and the consequence is back to the previous question. The company will either go bankrupt or the government will take over the shares! "
Kennedy was silent. As long as the main body of Bulgaria's economy is industry, then it is doomed that the inheritance tax will not work. There is even greater resistance, from traditional forces, the whole society will oppose the collection of inheritance taxes!
If this tax is released, the peasant class will riot. The Bulgarian peasant class is now very powerful and the most combative class.
Military aristocrats are the spokespersons of the peasant class in the government. They stand together in terms of interests. Whoever dares to move their land will kill them!
Now Bulgaria can collect any tax, but inheritance tax cannot be touched. Whoever touches it will be finished!
Kennedy seemed to have thought of something. His forehead had already begun to sweat. Fortunately, it was raised at a high-level government meeting, and the news would not be leaked.
If he is left outside, he will be ruined by the proposal of imposing inheritance tax, and he should not do anything against all the Bulgarian people!
After Kennedy looked at Ferdinand gratefully again, he knew that he had gone to the ghost door just now. If it weren't for Ferdinand's evasive explanation, once the lid was opened, he would be finished!
Of course, what he didn't know was that the king in front of him was the backbone of the opposition to the inheritance tax. Who made his vests spread all over Bulgaria?
Once the estate tax appears, there will be a scene that makes him the most sad. Most of the estate tax in the country is paid by him alone!
How can this work? Isn't this equivalent to a tax set specifically for him alone?
As the boss of this country, he can pay taxes is already very shameful. If there is another kind of tax set specifically for him, is there any king?
This hidden danger must be suppressed in the cradle. He has decided to add a clause to the constitution, not to impose inheritance tax on any real estate or land!
Taking advantage of the current social environment, all the vested interests in Bulgaria are members of opposing the collection of inheritance taxes~EbookFREE.me~ directly eliminate this hidden danger!
At this time, many people reacted, looking at Kennedy's eyes, they were a little uncomfortable. Even if you want to die, don't you bring this?
Everyone has a lot of fiefdoms? Once the inheritance tax is levied, one of the people sitting here counts as the main force in paying the tax.
They are all a generation of nobles, and there are few who can get the money! If there is no money, the fief will be cut. Isn't this killing them?
Ferdinand had been silent for Kennedy for three seconds in his heart, knowing that his future would be difficult. Considering that now, he still needs this capable finance minister, so he opened his mouth to relieve him.
"Well, regarding the increase in taxes, stop here, no one is allowed to mention it outside!
The topic of today’s discussion is the issue of pensions. The government must consider the issue in a comprehensive manner, and at the same time publicize these possible situations to all sectors of the society.
The establishment of a pension system is a long-term social issue. We cannot make direct decisions arbitrarily. It must be discussed by all the people in Bulgaria and let them decide whether to establish this system!
And whether to achieve full coverage is also a question. Everyone's income is different, and the economic level of each region is also different. How to determine this standard is also a very serious problem!
When the government comes down, we need to go out to see more and listen to what ordinary Bulgarians say. Before the pension system is established, we can establish a social assistance system.
Provide the most basic social assistance to those elderly who have made contributions to Bulgaria but have lost their labor force, have no children, or whose children cannot afford their pension obligations! "
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