Economic Wisdom to Apply in Your Twenties

Chapter 19

Chapter 2 Section 7 You Cannot Avoid Taxes, But You Can Pay Less Taxes
Beard tax: In Russia, those who grow beards have to pay taxes. If they refuse to pay, the inspectors will definitely cut off his beard.

Fat Corpse Tax: The city of Birmingham in the UK stipulates that the width of the coffin used by the deceased is 23 inches (58 cm), and the width of the coffin exceeding 1 inch is 7.5 pounds.

Window opening tax: According to the ancient Greek regulations, all households should pay window opening tax for windows that open toward the street and outside.

Childless tax: The Soviet Union has imposed a childless tax on married couples without children since February 1987, 2. The tax rate is 11% of my monthly salary.

Divorce tax: The state of California stipulates that couples who have been married for less than two years, have no children and have no valuable property. If they want to divorce, they only need to mail a divorce tax of 30 US dollars to the state government legal department, and ensure that the two parties divide their private property without disputes, and their divorce will automatically take effect. .

Foreign bride tax: In the United Arab Emirates, such a regulation has been promulgated. If you marry a foreign woman, you must pay a considerable amount of "foreign bride tax" to the government.In the country, a man has to give a gift of tens of thousands of dollars to the woman’s family when he gets married. Many men turn to marry foreign women because they cannot pay such a heavy gift. In order to control this behavior, the UAE government came up with this strange thing. trick.

The above all sorts of strange taxes may seem like jokes, but they really exist, reflecting that some governments control people's behavior through taxation at specific times.

As early as 1789, Franklin, the founding father of the United States, said: "In this world, nothing is certain except death and taxes." It is a form of fiscal revenue obtained through compulsory and free land expropriation as a tool to participate in the distribution and redistribution of national income and social products.

The purpose of taxation is to raise funds for various government expenditures, or to obtain the maximum tax revenue with the lowest tax collection cost.The amount of tax depends on the tax base (national income) and tax rate, and the cost of tax collection depends on the efficiency of tax collection and management.The tax rate is the quantitative relationship or proportional relationship between the tax amount and the taxable object, and refers to the scale of taxation.

In the Xia Dynasty, the first slavery country in ancient my country, the earliest fiscal collection method was "tribute", that is, the subjects offered items to the king. "Gong" is the embryonic form of tax. "Fu" appeared after "tribute".In the Western Zhou Dynasty, the collection of military supplies was called "Fu"; the collection of native products was called "tax".In the late Spring and Autumn Period, taxes and taxes were uniformly levied on the basis of acres of land. "Fu" far refers to military Fu, that is, the military service and military supplies collected by the monarch from his subjects.But in fact, the income collected by the state is not limited to military taxation, but also includes products used for other aspects of state expenditure.In addition, the income collected by the state from gates, markets, mountains, water surfaces, etc. is also called "fu".Therefore, "fu" not only refers to military supplies collected by the state, but also has the meaning of "tax".

Later, "tax" and "tax" were often used together, collectively referred to as taxation.During the Qin and Han Dynasties, land tax, adult tax and household registration tax were levied separately.In the Ming Dynasty, the stalls entered the land and were taxed according to the land.At the end of the Qing Dynasty, taxation became a general term for various taxes.Peasants pay rents in kind to the landlords and taxes in loans to the state.

my country's taxation system has undergone continuous evolution for thousands of years, but it remains the same. The essence of taxation has always been "taken from the people and used for the people".In a market economy, taxation is an important tool to regulate income distribution.Since my country's economic system reform, with the adjustment of income distribution policy, the income gap of residents has gradually widened.As an important means of adjustment, taxation can effectively adjust income distribution through policy adjustments and increased collection and management.Taxes such as progressive taxes, property taxes, and inheritance taxes are designed for this purpose.

The country wants to tax more, and we want to pay as little tax as possible.This is the game of tax avoidance.The law does not allow citizens to evade taxes, but reasonable tax avoidance can save us a lot of money without breaking the law.As wages get higher and higher, there will be a big difference between knowing how to avoid taxes and not knowing how to avoid them. This difference is not just as simple as paying a few hundred dollars more every month, but also related to whether your wealth can be accumulated faster stand up.Therefore, if you are in your twenties, don't think that taxes have little to do with you.You have to figure out, who are you paying for?Can you pay the bill for less?
Wisdom Pieces: Three Reasonable Tax Avoidance Measures

1.Remuneration in batches
Some people do part-time jobs in their spare time, and then receive remuneration. You will find that the tax you have to pay is different when you receive 6000 yuan at a time for half a year and 1000 yuan a month in batches.If your remuneration is paid in one lump sum, you'd better declare it in batches and go to the bank to collect it in batches.

2.Receive bonus in batches
Similarly, for the year-end bonus, we can also collect it in batches.You can apply to the company to let the year-end bonus be issued in batches, so that your money will be spread equally every month, which can reduce the tax you have to pay.In the same way, other bonuses can also be claimed in this way.

3.Overpaid provident fund
This is a good way to make reasonable use of the policy, because according to the relevant regulations of the tax department, the housing provident fund paid by citizens every month is deducted from before tax, so everyone can make full use of the provident fund to avoid tax.It is very cost-effective to pay more provident funds.

(End of this chapter)