Sail across the sea

Chapter 440 With money, nothing is impossible.

"Xiao Gao, your request is a bit excessive, haha."

Liu Tiancheng considered his words carefully, and finally used a half-joking, half-serious way of putting it.

When Gao Fan heard Liu Tiancheng say this, he smiled and said, "County Chief Liu, oh no, how about I call you Uncle Liu? Is that alright?"

"Shouldn't you call me Uncle Liu?" Liu Tiancheng pretended to be a kind elder, but in his heart he was sighing. This young man is not simple. He has steered my attention astray with just one address.

Liu Tiancheng just said that Gao Fan's demands were excessive. This word can be interpreted as an accusation or as a joke, depending on the relationship between the two parties.

Liu Tiancheng's intention was more to criticize. He wanted Gao Fan to know that this request exceeded the tolerance of Cangtang County, and if Gao Fan knew what was good for him, he should get out of there as soon as possible.

However, Gao Fan then requested a change in address, calling Liu Tiancheng "Uncle," essentially playing the personal emotional card. If Liu Tiancheng accepted this form of address, his use of the word "excessive" could be interpreted as playful banter between acquaintances, giving Gao Fan an opportunity to argue his point.

Can Liu Tiancheng refuse to be called "Uncle"?

the answer is negative.

If someone claims to be a junior and you say something like, "What right do you have to call me uncle?" or "I don't deserve to be called uncle," then you're slapping them in the face, and the next step will be a fight to the death.

Gao Fan may be a child, but this child has built a private enterprise that generates $5000 million in foreign exchange annually. Behind him are ministerial and departmental level leaders like Zheng Linong and Xu Ying. His father has risen rapidly in rank because of him and is now an official at the same level as Liu Tiancheng, with a high probability of being promoted further within a few years.

Is someone like this someone you can just slap in the face at will?
"Uncle Liu, I'd like to ask about some data. What was the total industrial output value of Cangtang County last year, and what was its fiscal revenue?" Gao Fan asked.

Liu Tiancheng didn't know why Gao Fan suddenly asked this, but he still answered, "Last year, the county's total industrial output value was 1.2 million yuan, and its fiscal revenue was 1800 million yuan. Actually, as you know, half of this 1.2 million yuan in total industrial output value was contributed by Canghai Fertilizer Plant and your Canghua Science and Trade Company. Before the fertilizer plant was renovated, the county's annual total industrial output value was less than 6000 million yuan."

Canghai Fertilizer Plant produces 4 tons of urea annually, and with other by-products, its annual output value is over 2000 million yuan.

Of the two industries of Canghua Science and Trade, the production of vitamin C and vitamin E is located in Yanxiu and Wuyuan respectively. According to the principle of territorial jurisdiction, their output value cannot be calculated in Cangtang County. Only the production of chemical cleaning agents can be calculated in Cangtang County.

Last year, Canghua Science and Trade exported more than 1000 million US dollars worth of chemical cleaning agents to Japan and Southeast Asia, which is equivalent to about 3000 million yuan according to the exchange rate. Adding domestic sales, the total amount is close to 4000 million yuan.

The two figures combined amount to over 6000 million, accounting for half of the total industrial output value of Cangtang County.

However, in terms of its financial contribution to Cangtang County, Canghai Fertilizer Plant is less valuable than other county-owned enterprises. County-owned enterprises remit their profits and taxes to Cangtang County, while Canghai Fertilizer Plant, whose funding for the ammonium sulfate-to-urine conversion project was allocated by both the central and provincial governments, became a provincial enterprise after the conversion was completed. Its profits and taxes are directly remitted to the provincial treasury, leaving Cangtang County with only a small share. Furthermore, Canghua Science and Trade is a subsidiary of Canghai Fertilizer Plant, and its revenue is naturally attributed to Canghai Fertilizer Plant, thus excluding Cangtang County.

Gao Fan said, "After Canghai Chemical and Canghai Fertilizer Plant are separated, the ownership of Canghai Chemical will return to Cangtang County. In the future, our taxes will be paid to Cangtang County. I don't know the fiscal revenue sharing ratio between Cangtang County and the province, but I dare say that the contribution of Canghai Chemical to the county's finances will be more than the total contribution of all other industrial enterprises in the county."

The fiscal system in the 80s was extremely complex. The revenue sharing between provincial and municipal/county governments changed almost every year, and each county had its own policy. Currently, the fiscal system stipulated by the province is called "classifying tax categories, verifying revenue and expenditure, and tiered contracting." Simply put, it first determines a base amount of fiscal revenue for each municipality/county, and then stipulates that the portion exceeding the base amount is divided between the province and the municipalities/counties at a fixed ratio.

Since the base for fiscal revenue is determined in advance, if a county has a highly profitable enterprise that can pay a large amount of profits and taxes, this amount exceeds the base, and the county can obtain a certain percentage of it as its own fiscal revenue.

Canghai Chemical's chemical cleaning company is located in Cangtang County, with an annual output value of 4000 million yuan and a profit of 2000 million yuan. Because it was previously a collectively owned enterprise and an important export-oriented enterprise, the province granted it a special policy, levying only 25% industrial and commercial income tax, which amounts to 500 million yuan annually.

Cangtang County has about 100 state-owned and collectively owned industrial enterprises, with an annual total industrial output value of 6000 million yuan and total profits and taxes of less than 1000 million yuan, which is twice that of Canghai Chemical.

In Gao Fan's plan, the chemical cleaning company's business will be further expanded, and it will be easy for the tax payment to exceed 1000 million. Therefore, he dares to make the boast that the financial contribution exceeds the sum of all other companies.

Liu Tiancheng frowned again. He had to admit that Gao Fan's calculations were correct, but this calculation made him feel rather embarrassed. At the same time, he realized that he didn't really have the confidence to refuse Gao Fan's request, since the other party was a major investor in the county.

Seeing the change in Liu Tiancheng's expression, Gao Fan continued, "There are so many government agencies and enterprises in the county, full of talent, yet the profits and taxes they generate are only about the same as our makeshift team. If some of their talent could be allocated to us, the county's loss would be negligible, but our contribution to the county could at least double. Why not?"

“The county’s work is not limited to generating tax revenue; it also includes improving people’s lives, maintaining social stability, and developing education, science, culture, and health. If the people in these departments are transferred out, how will the county get any other work done?” Liu Tiancheng retorted.

Gao Fan chuckled: "But we can make money for the county. With money, what can't we do?"

"Then tell me, how much money can your Canghai Chemical Company make for the county?" Liu Tiancheng asked.

Gao Fan said, "It depends on how many people the county can give us."

"How many people do you want?"

"Of course, the more the better. If we can bring in 50 cadres who are both virtuous and capable, I am confident that we can increase the output value to 1 million yuan next year and pay no less than 1200 million yuan in taxes."

Gao Fan said confidently.

(End of this chapter)