Chapter Five Hundred and Seventy-Six Cruel Tax

Chapter 576 Cruel Taxes

"These excellent employees are the most valuable assets of the company, and their loss will accelerate the decline of the company."

George said lightly, "In addition, high housing prices will drain the savings of ordinary people. The house slaves have been in debt for decades in advance, and their spending power will not be greatly improved in the next few decades. ...which in turn will cause manufacturing to lose its entire future."

George said in a positive tone, "Hong Kong's existing distribution system determines the decline of the manufacturing industry."

Xu Wenbiao's face turned pale, and every word of George fell on his sore spot.

He lowered his head and added what George didn't say.

"Although from the current price, these discounted manufacturing industries are attractive. However, these manufacturing industries have lost their future, and high housing prices are destined to reduce their profits year by year and their costs to increase year by year."

"In a few years, the manufacturing industries that seem to be profitable will also go bankrupt and lose money."

George nodded and said lightly, "Hong Kong's existing distribution system has determined that it is not suitable for the survival of the manufacturing industry. Obviously, we are enterprises and businessmen, and we cannot change the distribution system in Hong Kong."

Xu Wenbiao said in a bitter tone, "Unless the citizens can recognize this and are willing to make sacrifices to protect Hong Kong's manufacturing industry. Otherwise, the manufacturing industry will slowly disappear in Hong Kong."

He said in an annoyed tone, "But why can housing prices continue to rise on the basis of the bubble? People's incomes have not increased accordingly."

George smiled and explained, "House prices don't need to correspond to an increase in people's income. You just need to understand house prices as taxes. House prices are a kind of tax. As long as the tax can continue and the rule can continue, the house price can be maintain."

"House prices are an invisible tax." Xu Wenbiao murmured.

"If you've ever known the Muggle world...well, the history of the human world." George was quick to speak, and he was already speaking a little more smoothly. He slowed down and spoke slowly. Portable Space: Abandoned Concubine of Famous Family

"Franklin once said that only death and paying taxes are inevitable, and the only thing that cannot be avoided in the human world is death and paying taxes."

"From every item you consume,

The breakfast in the morning, the clothes on your body, the dwelling you live in, the vehicle you commute to. Behind everything you encounter, there are endless taxes lurking behind. "

George said in a relaxed tone, "All other costs can be compressed, only taxes cannot be compressed. If you can understand this, you will understand that the price of breakfast is not due to the uncle who sells breakfast. I feel like I deserve a high income.”

"It's because of the tax that pushes up the cost of the uncle who sells breakfast. He can work harder by himself, but he can't pay less tax. The fundamental reason for the increase in the price of breakfast is because the tax is rising."

"So clothes are too expensive because of taxes. Houses are too expensive because of taxes. Travel is too expensive because of taxes."

George said slowly, "The city you live in, everything that surrounds you with modernization, and behind everything, there are tax reasons at work. What keeps the whole city running is the tax, what keeps the whole city running, those The income of officials is also a tax.”

"When the cost of running a city is too high, and the income of officials is too high, all the costs of the entire city will continue to rise under the influence of taxes, which will eventually lead to a rise in the cost of living in the entire city."

Xu Wenbiao nodded, "Hong Kong is a country with an ostensibly low tax system. Nearly half of the Hong Kong government's fiscal revenue comes from the sale of land. Government officials have great motivation to push up land prices and jointly push up housing prices."

George said flatly, "The price of land transfer, the deed fee for real estate transfer, plus other taxes and fees brought by investment, real estate accounts for most of the Hong Kong government's tax revenue. In this case, as long as the Hong Kong government's tax revenue is still If they can maintain it, they will do their best to maintain the high housing prices in Hong Kong.”

"Could it be that the housing prices in Hong Kong will continue to rise? So high that no one can afford them?" Li Youran asked curiously. No one in Hong Kong would not care about the trend of housing prices in Hong Kong. Rebirth Almighty Big Brother

Other colleagues were listening intently to George's analysis. They are all Hong Kongers and have a vital interest in Hong Kong's housing prices. They are eager to know how Hong Kong's housing prices will change.

They all want to know if they should buy now with debt or wait until they have the money to buy a house. Or you may simply need to sell your house and wait for the price to plummet.

George explained slowly, "House prices are taxes. These invisible taxes are an important means to ensure the financial balance of the Hong Kong government. They have the greatest willingness to maintain high housing prices."

"But the Hong Kong government is not omnipotent. The Hong Kong government adopts the linked exchange rate system. This is a more restrained and more effective exchange rate system. The Hong Kong government itself cannot directly issue Hong Kong dollars, and must have the corresponding US dollar as a guarantee. , the Hong Kong government can use the US dollar to increase the Hong Kong dollar in the market.”

George said slowly, "These Hong Kong dollars are an important means to push up housing prices, but Hong Kong's manufacturing industry is declining. Under normal circumstances, with the decline of Hong Kong's manufacturing industry, the dollar that Hong Kong can obtain will become more and more Less, and eventually house prices will peak.”

Xu Wenbiao nodded and said, "So it stands to reason that the decline of Hong Kong's manufacturing industry has caused people's income to not keep up with the increase in housing prices, which should have caused housing prices to fall. But now, because everyone is optimistic about the post-return hype factor, Instead, it attracts more dollars from home and abroad, pushing up house prices.”

Li Youran asked cautiously, "So, only when those dollars who are optimistic about Hong Kong's house prices leave, will Hong Kong's house prices fall?"

"Exactly." George said in a positive tone, "Look at those dollars, when it became more and more difficult for Hong Kong to obtain dollars, when those dollars began to stop growing. That's when The last bubble in Hong Kong housing prices."

"When will this time be?" Xu Wenbiao frowned and said anxiously.

If possible, he hopes that time will be faster. The manufacturing industry in Hong Kong can no longer afford the current high housing prices. Just wait another year or two, and Hong Kong's manufacturing industry will be completely swallowed up by real estate.

(To be continued.)