Chapter 1134: Give up Halfway

Fan Wubing's lobbying activities have achieved good results. At present, Fei Lao is the leader of the Wushan 20th Party Congress, and a consensus has been formed. They have expressed their support for Fan Heng's re-election and must keep his seat on the Standing Committee.

When Fan Wubing met with Boss Zhu, he also got a clear answer. Boss Zhu believed that Fan Heng had made great contributions in the past few years and his achievements were obvious to all, plus he was just over sixty. Relatively young, he should continue to play an important role in leadership positions.

As for the attitude of the number one commander, it is a bit ambiguous. As a key figure in the handover between the new and the old, the number one commander obviously cannot easily express his position, otherwise it will easily cause unpredictable consequences to the current situation. However, he also has a certain understanding of the situation. Fan Wubing said that Comrade Fan Heng should always be given a better arrangement.

Although Fan Wubing didn't get the answer he wanted, after comprehensive analysis, he could basically conclude that his father's re-election was a certainty, and he no longer had any doubts.

After solving this matter, Fan Wubing felt very comfortable, and there was also good news from the company.

Before the National Day, the computer design department of Fanshi Investment Group launched an advanced computer with a measured computing speed of more than one trillion operations per second, which passed the appraisal of an expert group composed of academicians of the Chinese Academy of Sciences.

This super computer with core technology of independent intellectual property rights has reached the tenth place in the current ranking of the world's top 500 super computers. The top nine computers are all made in Japan and the United States.

This computer is designed using the main components produced by Fanshi Investment Group. The total length of the computer is ten meters, including fifteen cabinets, 256 computer function node machines, 526 high The powerful processor has a total memory capacity of 10,000 and a total system hard disk space of 10,000. It has the advantages of easy use, easy management, easy deployment, scalability, high availability, easy maintenance, and high performance-price ratio.

In the process of development. Fanshi Investment Group has mastered a large number of core technologies with independent intellectual property rights, including 23 authorized patents.

This first-class computer can run the international standard addition benchmark program and use a single processor to solve a system of linear equations of the first order. The measured performance reaches 1.8 trillion floating point operations per second. It has been used to run a number of large-scale scientific engineering calculation applications such as petroleum mulberry data processing, reservoir simulation, weather forecasting, drug molecule design, and fluid mechanics, and has achieved satisfactory results.

Experts generally believe that this class of computer has reached the current advanced level of similar international products as a whole, and some technologies such as cluster management system, cluster monitoring system, cluster system performance optimization technology and cluster infrastructure have reached the current advanced level of similar international products. leading level.

Through the design and manufacturing of this first-class computer, the strength of Fanshi Investment Group's chip research department and overall design department has been rapidly improved.

It can finally join the ranks of the top international chip manufacturers.

Fan Wubing was quite satisfied that his company's technical staff could achieve such results. Therefore, in addition to heavily rewarding meritorious personnel, he also invested more research funds in the laboratory to support his laboratory's success in This goes a little further.

When Fan Wubing visited Boss Zhu, Boss Zhu was having a headache over the issue of tax and profit reform.

Today's tax rebates in general transfer payments, including value-added tax and consumption tax, personal income tax and corporate income tax base rebates, are that the richer provinces get more, the poorer areas get less subsidies, and the public funds in backward areas get more. Services remain underfunded.

However, the tax refund itself is a kind of benefit compensation for local governments as a result of the central government's changes in the financial management system. Therefore, the impact of this compensation mechanism on backward areas cannot be overemphasized, and as the total amount of central transfer payments increases, the proportion of this part is decreasing.

The big problem in China is that there are relatively few general transfer payments, and a large number are special transfer payments.

There have been many adjustments recently. If tax refunds are not included, general transfer payments account for an increasing proportion of all central transfer payments. The management of special transfer payments is even more irregular and arbitrary, so there has been a phenomenon of money flowing into the department that has been criticized in recent years.

In special transfer payments, the current operation is often problematic. If it is a 20 million joint project, the local government usually has to report 50 million or more. Why? This is because many projects now require local matching funds, which is very troublesome for some remote local governments. There is not much fiscal revenue, and a certain proportion of supporting funds cannot be provided.

what to do? Then double the amount in advance. Why should the quotation be more than double? Considering that the central government will cut off part of the budget based on local bargaining and add management fees, which is called rent-seeking cost in economics. And if all provinces and cities apply to the ministries and commissions with approval authority

The daily fees add up to a very considerable sum, which is all about game theory. For a large country like China. To complete the transformation of governance methods, the inherent requirement is the autonomy of local governments on the basis of decentralization, and the fiscal and taxation system is the core of the entire governance mechanism. The current urbanization process in the country is also forcing the transformation of the entire tax base. Local governments must have their own stable sources of revenue to support administrative expenditures, economic infrastructure and the supply of public goods, and they must also shift to public finance-based expenditures. Structured.

The existing tax-sharing system is far from being able to adapt to the current stage of China's economic and social development and the inherent requirements of China's political transformation.

Boss Zhu told Fan Wubing, "There are four main problems with China's current fiscal system. All of them are very difficult."

The four problems he mentioned are: first, the highly centralized power of tax legislation. my country's tax legislation is highly concentrated in the central government, which cannot fully mobilize the enthusiasm of local governments to cultivate tax sources. Moreover, the legislative power of taxation is often concentrated in the hands of the government, which is formulated and implemented by decisions, notifications, and regulations. The role of the National People's Congress and local people's congresses is limited. Moreover, the personnel structure of the latter two is also problematic. The Budget Law has delegated the decision-making power of the fiscal management system to the State Council at one time, which is equivalent to the financial power of a family being completely handed over to the housekeeper or nanny, or a. The financial power of a company is transferred from the board of directors to the general manager.

Second, China is not a decentralized country in law. All fiscal arrangements and adjustments of affairs and powers between the central and local governments so far are the result of negotiations and compromises between the central and local governments. Due to its authoritative position in politics and administration, the central government often has the main initiative and decision-making power on the division of affairs and financial powers, and therefore lacks inherent stability and legal protection.

Third, the current local tax system is imperfect. The local tax system structure is unreasonable. There is a lack of local main tax types.

The income scale of a single local tax type and its proportion of the total tax revenue are relatively large, which leads to the local government's own fiscal budget being unstable and highly dependent on extra-budgetary and extra-institutional funds, land finance and debt.

Fourth, in terms of fiscal expenditure, the efficiency is still very low. Governments at all levels generally attach importance to revenue and ignore expenditure efficiency. The lack of a transparent and constitutionally constrained public fiscal budget system has led to the inability of taxpayers and the media, as the secondary power department, to effectively supervise the government's fiscal expenditure. The taxes paid by taxpayers are also not matched with the public services they enjoy.

Although Fan Wubing is not very clear about the domestic tax system, he has studied American affairs, so he told Boss Zhu. "In mature and competitive federal countries, such as the United States, the boundaries between the market and the government are first defined, and then the powers of governments at all levels are defined according to the principle of subsidiarity. Then, according to the powers of governments at all levels, expenditure responsibilities and expenditure needs are determined, and finally the revenue needs are determined. The source of the right to income is the power of affairs, the power of expenditure, and the expenditure needs. All these powers are granted by the citizens in the jurisdiction and are arranged within the constitutional framework. The so-called principle of subsidiarity means that all matters that individuals and markets can handle are left to them to handle; the power of government is left to the lowest necessary level of government to perform, and the higher-level government provides auxiliary support. Moreover, before the higher-level government takes over or intervenes, it must also consider whether it can really solve the problem better. So the United States is a little different from us."

Obviously, in the reform of the tax system structure itself, local governments must have their own stable financial resources, which is also the basis of local government autonomy itself. For example, according to the experience of the United States, the overview of the financial pillars of the three levels of government is that personal income tax and wage tax (similar to social security tax) belong to the federal government (central government); sales tax and corporate income tax belong to the state (equivalent to the provincial level in my country); property tax belongs to the local government (grassroots government).

China is the country with the most government levels in the world, with five government levels (central, provincial, municipal, county, and township), which is one of the important reasons for the current confusion in the division of power and financial power. The reform of the fiscal and taxation system requires the support of the administrative system reform. In the medium and long term, China's administrative system obviously needs to undergo a series of reforms.

"However, these problems are no longer my headaches. After the handover of work next year, I can live my retirement life steadily." When Boss Zhu talked about this, he also felt a little breathless.

Although he had presided over the daily work of the State Council for many years before, he was the prime minister for only one term and did not thoroughly reform the economy and finance according to his own ideas, leaving behind many half-finished projects, which is very regrettable.

It can be imagined that after the new leader comes up. His own set of work ideas may not be able to continue, and some efforts will be abandoned halfway.