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4 trillion US dollars of foreign exchange awaiting settlement, which is 24 trillion Chinese yuan, how was such a huge amount of foreign exchange reserves concealed?
Davic couldn't figure it out.

Wei Yan also couldn't figure it out.

24 trillion, not 24!
On average, every citizen of Longguo can get nearly 24 yuan from trillion Longguo yuan, which is not a small amount.

"Four trillion US dollars, how come such a huge amount of money to be converted has only been discovered now?" Davic asked with a gloomy face.

He had never expected that Longguo actually had a backup plan. No wonder it dared to implement universal free medical care during the economic deflation. He thought it had "hidden energy behind it."

"Robert Carter, head of the Society for Worldwide Interbank Financial Telecommunication, said that this part of Longguo's account did not go through the SWIFT bank settlement system, but was distributed among various banks in an external way. Now that Longguo has initiated a settlement application, the SWIFT data center has captured the information."

The secretary responded quickly.

As soon as he finished speaking, Wei Yan and Davic both had a look of surprise in their eyes.

The funds were cheated in and the total amount was hidden. The think tank of Dragon Country might have anticipated this day and laid the groundwork early on.

Perhaps many people don’t know how popular Dragon Country products used to be.

Let’s put it this way, if you pick up a piece of glass, it may be made in Long Guo; if you pick up a pair of scissors, it may also be made in Long Guo; even if you pick up a bag of nails, it may still be made in Long Guo.

From TV and air-conditioner remote controls to glass kitchen knife displays, Dragon Country products have captured most of the global market share.

It is for this reason that products with the Dragon Country label have become synonymous with good quality and low price.

This is why, at its peak, Dragon Country’s foreign exchange reserves reached 7 trillion. But in reality, it was far more than 7 trillion, with a large amount of external funds that had not been settled.

What is the cheating amount?

To put it bluntly, it means not to convert foreign exchange into RMB.

Before the advent of domestic settlement systems, foreign exchange settlement had to go through the SWIFT bank settlement system for trade settlement.

Who is the buyer, who is the seller, and how much you earned, as long as it goes through the SWIFT bank settlement system, it will be recorded in the Society for Worldwide Interbank Financial Telecommunication database.

But if you don't convert the currency into RMB, the Society for Worldwide Interbank Financial Telecommunication does not have the ability to know all the cooperation orders.

This is a bit like a "bathing veteran". Although they can pay with a scan of WeChat or Alipay, they are used to carrying thousands of yuan in cash. As for what it is used for, only the two parties to the transaction know.

……

After sorting out the incident, Wei Yan couldn't help but sigh: "It seems that the Dragon Kingdom is not just talking, it really wants to use all its strength to build free medical care for all people, so as to break the economic deflation."

“But will it really last?”

Davic couldn't help but ask.

If Longguo only had a population of 1 million, it would be entirely possible to provide free medical care to all citizens based on the current production capacity, and even free education and pension could be further improved.

But for a country with a population of 13 billion, which will soon become 14 billion, the annual free medical expenses are estimated to be more than 30 trillion.

Is Longguo sure it has enough funds to invest?
Davic expressed doubts.

"This combination of punches should not be finished yet. It is impossible that Longguo is unaware of the expenses of free medical care." Wei Yan said in a deep voice.

Just as he expected, meetings were being held in all prefecture-level cities in Longguo.

What meeting?

A meeting with local wealthy people!
The Xinlong Kingdom has been established for less than a hundred years, and all aspects of taxation are still imperfect.

Things like departure tax, inheritance tax, and various direct taxes are not implemented.

As for why it has not been implemented, the main reason is that the top leaders want to create a group of rich people first and let them lead others to become rich later.

Now that this group of people are already very rich, the wealth in their hands also needs to be restrained and must flow back into society to a certain extent.

After several days of talks, local departments also reported their opinions and information.

half a month later.

After compiling opinions from various prefecture-level cities, the Tax Bureau further added support for "free medical care" and made high-profile posts on various social media platforms.

[In order to further improve my country's tax system, optimize the tax structure, and promote social equity and economic development, it is decided to implement property tax, departure tax and inheritance tax nationwide. The relevant matters are hereby announced as follows:
1. Property tax.

Purpose: Property tax aims to regulate the real estate market, promote the rational use of resources, increase local fiscal revenue, and provide financial support for public services.

Scope of taxation: Property tax will be levied on multiple homes and commercial residential properties across the country, and the specific scope includes properties in cities, county towns, and established towns.

Tax basis and tax rate: The basis for calculating property tax is the assessed value or market value of the property. The specific tax rate will be set differently according to different regions, property types and values ​​to ensure that the tax burden is fair and reasonable.

Exemption policy: Exemptions and reductions may be granted according to law for low-income families, special hardship groups and properties for specific purposes.

2. Departure tax

Purpose: The departure tax is intended to regulate capital flows, prevent illegal outflow of assets, and safeguard national economic security.

Taxable objects: Departure tax is mainly imposed on individuals and enterprises that are about to leave China, and is levied on their property, income or capital gains obtained in China.

Tax rate and calculation method: The departure tax rate will be set based on factors such as the type, value and holding period of the property. The specific calculation method will be announced separately.

3. Inheritance Tax
Purpose: The inheritance tax aims to regulate wealth distribution, promote social equity and prevent excessive concentration of wealth.

Scope of taxation: Inheritance tax will be levied on the personal legal property left behind by citizens upon death, including real estate, deposits, stocks, jewelry, etc.

Tax rate and calculation method: The inheritance tax rate will be levied progressively based on the total amount of the inheritance. The specific tax rate and calculation method will be announced separately.

Exemption policy: Exemptions may be granted according to law for inheritances from low-income families, special hardship groups and inheritances for specific purposes.

4. Implementation time

The specific implementation time of property tax, departure tax and inheritance tax will be notified separately to ensure a smooth transition and implementation.

This announcement will take effect from the date of publication. If you have any questions or suggestions, please promptly report them to the relevant departments.]
The announcement on the implementation of property tax, departure tax and inheritance tax has caused the recently quiet Internet in Longguo to explode again.

Almost in the blink of an eye, the term "tax reform" rushed to the hot search list, and the number of views also soared rapidly.

100 million.

700 million.

3000 million.

5000 million.

The surge in the number of viewers also brought about countless discussions among netizens.

[Xiaotang doesn't know martial arts]: "If I remember correctly, property tax, departure tax and inheritance tax are taxes on the rich, right? Could it be that the country wants to rob the rich to help the poor and use this part of the tax revenue to fill the hole of free medical care?"

[Ming Jing Jiuzhou]: "No wonder the country dares to implement free medical care for all and exempts the payment of medical insurance. It turns out that there is a combination of punches!"

[Fast as Lightning]: "The rich should pay more taxes. Only when the tax revenue is balanced can social wealth be redistributed."

[Me in the mirror]: "I feel the country's decision to achieve universal free medical care. If nothing unexpected happens, housing prices will slowly fall from their high point."

Multiple properties are subject to tax, and commercial residential properties are also subject to tax. To put it bluntly, except for houses that are needed for basic needs, all other additional properties will be subject to a tax.

Like the United States and other developed countries, they also have property taxes, which are levied every year, and the amount levied is calculated based on 1% to 3% of the total price of the house.

For example, suppose you bought a house worth 100 million US dollars in the United States. In addition to paying daily management fees, you also need to pay 1 US dollars in property fees.

Of course.

This is the lowest 1% tax. Whether it is 1% or 3% needs to be evaluated by a professional organization, but generally speaking, it is often 1.5% or 2%, taking the middle value to collect taxes.

Because they have to pay property taxes every year, American people tend to rent houses.

Even if they really want to buy a house, they will do it within their means. After all, if they cannot pay the property tax, the house will be seized and auctioned.

As for inheritance tax and departure tax, these are too far away for ordinary people.

Let’s talk about inheritance tax first. Although it also has an impact on ordinary families, it obviously has a greater impact on wealthy families.

Even if a 100% tax is levied on both an inheritance of 100 million and an inheritance of 10 billion, the latter would amount to a full 10 billion in taxes.

The impact on ordinary families can be fully compensated by free medical care.

As for the departure tax, many people may have misunderstandings. In fact, it is not a tax levied upon leaving the country, but it is only levied upon leaving the country to settle down. Tourism is not affected at all.

For example, suppose a wealthy businessman obtains a US green card and decides not to live in China anymore and wants to sell his domestic assets at a low price. At this time, a departure tax will have to be levied.

Translated into plain language, the departure tax is actually a "cutting fee".

After paying this money, you can go wherever you want and be whoever you want.

Because of the need to "cut", the departure tax collection rate is also the highest. For example, the departure tax of the island country is 10%, Germany is about 20%, and the United States has the most severe collection rate, which is 23.8% for individuals and 21% for companies.

According to the U.S. departure tax, assuming you have a net worth of 1000 million U.S. dollars, you need to pay 238 million U.S. dollars before you are allowed to legally leave the United States.

otherwise…

The US tax department will issue a global arrest warrant.

Not only will there be a wanted notice, but there will also be a late payment fee, which is often 1% of the payment amount and is calculated on a daily basis.

Although the U.S. tax system is very complete, there are still loopholes.

For example, they can circumvent inheritance tax by setting up charitable foundations, and most of the wealthy Americans are using this method.

Do you think they really want to do charity?

No, no!
They are just trying to avoid taxes.

……

First, there was a 10 trillion yuan plan to build free medical care for all the people, and then there was the imposition of a "rich tax". This has caused the housing prices in Longguo to begin to shake, and real estate speculators are left with no tears to cry.

I had thought of getting rich by speculating in real estate, but now I had to sell at a loss.

Landlords who own multiple properties and rent them out for profit also received text messages asking them to go to the tax department to register their profitability.

And at the same time.

The imperial capital of the Dragon Kingdom.

Yuquan Mountain.

In a courtyard near the stream, Wang Shan was drinking tea with a few elderly people, all of whom had worried expressions on their brows.

"This is a huge gamble. Our current fiscal funds can only sustain universal free medical care for one to two years. If we can't turn the situation around, it will be a devastating disaster."

"Yes, the $4 trillion in foreign exchange reserves have also been exposed. If we lose this bet, I can't believe how bad the domestic economy will be."

"Life is a series of choices and games. I hope our choice is the right one this time."

As the elders were sighing, Wang Shan glanced at the memo on his phone. He took a sip of tea and said, "We cannot lose this battle that will determine our country's fate. We can't afford to lose. Okay, drink slowly. I have to go to the ASEAN headquarters building. The power supply agreement needs to be re-finalized."

He had already kept in mind several of Chen Xing's suggestions.

It is a good idea to use electricity to add value to the Dragon Country currency.

You should know that Longguo’s power grid not only supplies electricity to the country, but also extends to Southeast Asia.

Longguo Power can be found in Vietnam, Myanmar, Laos, the Philippines, and even Brazil, Australia and Italy.

It is no exaggeration to say that if the power in Longguo is cut off, dozens of countries will also suffer power outages. This is the terrifying background of the State Grid.

The "Ultra-high Voltage Transmission Technology" is the unique skill of Longguo and also the magic weapon for supplying power to many countries.

Hearing this, the other old men nodded.

"Go ahead, the electricity agreement really needs to be re-written, and we can't just use the US dollar cheaply any more."

"Before, they could only pay in U.S. dollars, but now they have to pay in Dragon Country currency."

"You are right. Only when our currency becomes hard currency can we truly break the economic restrictions imposed by the United States on us."

Wang Shan nodded slightly, then asked the guard to drive the car, planning to fly directly to ASEAN.

And on the other side.

Shencheng Longgang.

Longxing Group Landscape Base.

Although Gu Ren went to the Northwest Nuclear Fusion Base, Chen Xing had the synthesis formula for room-temperature superconducting materials, and it was easy for other system talents to build a mass production factory.

Since room-temperature superconducting materials are top secret, he chose a location in a corner, avoiding relatively mature industrial areas.

For the landscape base, Longxing Group has been investing in its development in an orderly manner.

At present, 60% of the business workshops of the Guancheng production plant have moved to the Shanshui base.

As for Tengfei Industrial Park, the production factories of Longxing Silicon Industry and Longguo Chemical Industry have all been moved out.

The current Shanshui base is a super factory that integrates automobile, semiconductor silicon wafer, photoresist, chip and mobile device businesses, and the number of employees has exceeded 10.

Yes!

A full 10 workers!

10 workers may seem like a lot, but for a trillion-dollar company like Longxing Group, the number is just average.

Of course, it’s not that Chen Xing deliberately reduced labor costs, but most of the production lines have been semi-automated.

For example, a single production line of the Brilliant X2 only requires 6 people to control it.

"According to the current production schedule, the daily output of room-temperature superconducting materials is 1.4 tons. Is it necessary to expand production capacity?"

Li Tiao, the general manager of room-temperature superconducting materials, asked.

Chen Xing closed the equipment purchase document and said, "Maintain this production capacity. All room-temperature superconducting materials will be shipped to warehouses 76 to 80 and sealed. No one is allowed to move without my permission. You must do a daily inventory."

"Okay CEO."

Li Tiao nodded in response.

Room-temperature superconducting materials are top secret and cannot be used for the time being, but Chen Xing will not wait until they are really needed to produce them. What he has to do now is to prepare for a rainy day.

While Chen Xing was still at the Shanshui base, directing the mass production of room-temperature superconducting materials, far away in the R&D building of the Longxing Group's Bantian base, in the ternary computer programming laboratory, Jiang Ce and other programmers held their breath, waiting for the operating results of the new number system.

(End of this chapter)