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Text Chapter 272 Adverse Reactions

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    Chapter 272 Adverse Reactions

    ??Although on the surface, just selling the shops will only reduce a part of the rent, but in fact, this is the basis for the survival of the free city. When these shops are sold, they will no longer exist at all.

    Twenty percent tax, which is what the saying goes: five taxes and one tax. This tax is actually very low. What is particularly worth mentioning is that the entire transaction is only taxed once. In a free city, except for the moment of transaction,  , no one needs to pay a penny of tax, why?  In fact, the tax is included in the fee, which is the rent of the store.

    Twenty percent of the tax must be handed over to the kingdom, and about 5% must be handed over to the Holy See. After deducting these, what is left is only 10%.

    But now the question arises, doesn¡¯t a city need to spend money?  Is the 10% tax all profits?  No of course it can't be that simple.

    Roads need to be built, buildings need to be built, and workers need to be paid. To manage such a large industry requires more than 100,000 people to work for it. The wages of these 100,000 people alone can account for 5% of the tax!  Only high, not low.

    After deducting the taxes of the royal family and the Holy See, and deducting the salaries of employees, the actual remainder is only 5% tax, but even this money is not pure profit!

    The city always needs to develop. Even the parts that have been repaired still need to be repaired. Moreover, the city needs to continue to expand outwards. It requires a huge army to protect the safety of the city. In terms of military expenditure alone, the remaining 5% is  Not enough. Although a city only needs 10,000 guards, you must know that the soldiers in this world are definitely different from ordinary people.

    Those who are qualified to serve as the guard of the free city must at least be seventh-level masters. A legion composed of tens of thousands of seventh-level masters, the backbone of which are eighth-level warriors, and their salaries are very high, plus weapons, combat  For Class A equipment, the 5% tax is basically the same.

    In other words, on the surface, 20% of the tax revenue seems to have fallen into the hands of the Grand Duke, but everyone only sees how they make money, but not how they spend it.

    Of course, Lu Yi's side is better. He directly got forty ninth-level masters. There is no need for any legion at all. Therefore, the 5% tax is pure income. But you must know that after the Kingdom of Gary took over, the situation will be different.  That's not the case anymore. No ninth-level master is willing to do anything as a guard. After reaching the ninth level, what can you do without making money?  Who wants to be so humble as a bodyguard?  That is, the urban management on earth!

    The forty ninth-level masters that Lu Yi had found were parasitized and had lost their consciousness. Lu Yi gave the order, let alone being guards. Even if they were asked to die immediately, there would be no trace of them.  Hesitant, because in fact, there is no brain plasma in the brains of these people. Instead, they are actually mature parasites!  All their actions are controlled by the parasite, and the parent body of the parasite is the brain-eating worm!  The brain-eating worm is Lu Yi's clone and is part of his body.

    The next thing to talk about is the rent of the store. In fact this is the biggest source of income for Free City!  Although it seems that the rent of the house is not too expensive for the time being, as the free city develops, it will become more and more prosperous, and the rent of the shops will become more and more expensive!

    I believe everyone knows that the price of a rural store is definitely not high. If it is over a thousand square meters, it would be good to pay 1,800 yuan a month. But for the same thousand square meters, you can get it in a big city or the most prosperous one.  For the location, the price is no longer a matter of 1,800 yuan a month. You can't even get 18,000 yuan, but if you get a 108,000 yuan a month, no one will pay you a favor.

    Tens of thousands of commercial shops are the foundation for the existence of a free city!  It's a money tree!  Without this part of income, under the 20% tax rate, there is basically no income. Even if you plan carefully, you may end up losing money and making money.

    In the next six months, the Free City is still developing, and it is more prosperous than before. More and more businessmen have arrived here, squeezing the Free City to the limit!  However, since the Free City has abolished other types of taxes and only collects taxes during transactions, even though there are many people, the city lord has no income!  Instead, I filled in a lot of money!

    The current situation is that although there are many people in the city, there is no need to pay any taxes!  If the store is still in your hands, you can get more profits by raising the rent, but now the store has been bought out by an individual, and the money you earn is your own and has nothing to do with the City Lord's Mansion!

    Although shops also sell things and restaurants are open to the public, they actually do not pay taxes. They are all service organizations that provide services to businessmen from all over the world. Taking shopping malls as an example, no matter how many things are sold, they will not pay taxes.  NeedTax, their tax is actually included in the rent. As the city becomes more prosperous and the location becomes more precious, the rent will be constantly adjusted. On the surface, it is exempt from tax, but in fact, the tax is included in the rent.

    Lu Yi has a lot of such methods, such as tax reform fees. He has seen too many on the earth. As long as he can say it well, he can really implement it!

    Now, after this part of the tax has been cancelled, it means that all retail sales in the entire free city are completely tax-free. Only large-scale transactions that occur in the trading area can collect 20% tax. This alone  Part of the funds were simply not enough to spend. After deducting the taxes of the royal family and the Holy See, deducting labor wages, and deducting military expenses, not only did it not make any money, but it also lost a lot of money!  The amount of compensation is increasing every month!

    With tens of thousands of shops, how much is the monthly rent?  If there are 10,000 shops, how much is that?  What is particularly noteworthy is that the highly profitable industries are always in the hands of the Grand Duke, and there is no need for taxes at all, because all income is pure profit!

    For three consecutive months, the number of losses each month increased greatly. Faced with this, the eldest prince panicked. Losing money was a trivial matter. For the eldest prince, he focused on the entire country. For him, money was nothing.  It's just a number, it doesn't mean much. The only thing he wants is the throne of the king!  It¡¯s to inherit the throne!

    Now, the time has come to prove him. The Free City with unlimited potential has fallen into his hands. As long as he can manage the Free City well and let the Free City flourish in his own hands and become a cash cow for the Gary family, then the next leader of the country will have  The throne belongs to him.

    But before he came, he thought very well. He could dream of the infinite prosperity of the Free City, and the scene of him gloriously ascending to the throne of the country. However, the reality was extremely cruel. After falling into his hands, the Free City turned out to be  Not making money!  Instead, they are losing money every month, and they are losing more and more!

    Due to the influx of a large number of people, the security environment is also deteriorating rapidly. Therefore, more troops are needed to maintain order and protect tranquility. This military expenditure is really too huge. With the size and development potential of the Free City, it will require at least three  Only an army of ten thousand people can maintain it.

    Originally, the development outline formulated by Hana can no longer be implemented. With no income, the money brought by the eldest prince has been lost one after another. Without the money, what can be used to develop the city?

    Lu Yi can develop a city well because he has a construction army of 10,000 people and forty ninth-level masters stationed for a long time. Coupled with the Military Intelligence agents trained by the three Amy sisters, he can completely manage a city.

    According to the development outline, a large amount of money was originally supposed to be invested to continuously expand the Free City. However, now, although the royal family generally knows the future development plan of the Free City through Hana's report, it has not been given a specific time.

    Because I don¡¯t know the time, I don¡¯t know the urgency of the expansion of the Free City. With the influx of a large number of people, the Free City is overcrowded. A large number of foreign businessmen have no place to live and can only live on the streets. The whole city suddenly changes.  Dirty, messy and poor.  The pressure of sanitation and environmental protection work has doubled!

    Faced with the deteriorating situation, the eldest prince had no good solution. In fact, there were two reasons for this. The first was the loss of ownership of the shops in the city, and the second was the rapid development of the free city.  .

    In many cases, fast development is not necessarily a good thing. If the infrastructure cannot keep up, but the development is too fast, it will cause a disconnect. Once out of touch, there will inevitably be chaos. Once there is chaos, order will be lost. And once it is lost,  Order, then it will not be good.

    The situation the eldest prince is facing now is that he has no money, cannot carry out his work, and can only watch the environment deteriorate. And most importantly, since he took over the free city, he has only seen a lot of money being spent, but not a penny.  If you can't earn it back, you can suppress the taxes you owe to the royal family, but no one dares to expose the taxes owed to the Holy See, and you have to pay the workers' wages, otherwise who will do the work?

    Seeing that the urban environment was deteriorating day by day, all kinds of feces were even all over the streets, and the smell could make people faint. In desperation, the eldest prince finally reached out to the royal family of Gary to request funds. The free city must be expanded according to the plan.  Otherwise, there is no way to run it.

    Faced with this money, the royal family quickly allocated it and sent the royal construction corps to be responsible for expanding the free city. The reason why it is so exciting is because the development potential of the free city is too great. Once developed,  , the profits it brings are simply immeasurable, and can equal the total tax revenue of half the principality!

    After receiving a large amount of aid funds and help in building a legion, the eldest prince finally gave up and went to work.Hundreds of billions of aid funds were spent, and the Free City was quickly built three times, and the environment in the city was finally improved.

    However, although the environment has improved, what makes the eldest prince depressed is that there is still no income. Although the shops in the newly expanded area belong to the city lord's palace, the number is relatively small after all, and the location is remote. The rent is very low, which is simply a drop in the bucket.  , not useful!

    Faced with this situation, the eldest prince really had no choice but to write to the royal family and ask for a solution. After repeated arguments, the royal family's financial chief gave his opinion and adjusted the tax rate from 20% to 100%.  Thirty, that is, three taxes and one tax!  Only in this way can Free City have a large profit!

    Indeed, this calculation is correct. If Lu Yi was here, he would probably have to do this. After all After all the stores are lost, if the ratio of three taxes and one is not set, it will indeed lose money. Who can replace it?  It's all the same.

    But the problem now is that when the tax rate reaches three taxes and one tax, the free city model is destroyed. Merchants no longer have interests, so they will not sell goods in the free city. Instead, after resting here for a period of time,  Drive yourself to the destination to sell instead of turning around here.

    The reason why everyone changes hands here is that the tax rate is low and consumption is low. But now that the tax rate has been changed from five taxes and one to three taxes and one, the tax rate has almost doubled, and the profits there are very little, not even close to them, not at all.  It is necessary to change hands.
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