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Chapter 701 The Industrialization Model of Borrowing Chickens to Lay Eggs

Perhaps because the benefits were too great, as soon as Hudson returned to the territory from the royal capital, the envoys of the dark elves came over with gifts.

All are "local specialties" from the inner earth world.

Since the arrival of the tax officials, the gifts prepared for Mr. Ha have become the only tax-free goods.

"Elder Luticia, tax rate is a very complicated issue.

Xueyue Ling's tax laws were formulated after comprehensive consideration from many aspects.

The 70% tax rate you mentioned is not a single tax, but the sum of multiple taxes.

These include kingdom import tariffs, territory import tariffs, transit taxes, vehicle and vessel taxes, road construction taxes, transaction taxes, kingdom export tariffs... as well as rare import tariffs from other worlds and mainland import tariffs.

The tax rates for any single type of tax are not high. The main reason is that your situation is special and many taxes are concentrated in one.

If adjustments are to be made, the tax law must be revised, which cannot be accomplished overnight. "

For the sake of the gift, Hudson explained patiently.

As a moral noble, he would not charge excessively, and all taxes were in accordance with the law.

Although the law was enacted by oneself, it was also in compliance with legal procedures.

This explanation immediately changed when it fell into the ears of Elder Luticia.

Just borrowing a Tao from Xue Yue once, you have to bear more than thirty kinds of taxes, which is simply life-threatening.

There are just other taxes. There are actually import tariffs from other worlds, making it seem like there is cross-border trade.

The tax law is obviously designed specifically for them.

In addition, there are many weird tax laws.

For example: Mainland China’s import tariffs sound like that, but who is qualified to enact and levy this tax?

There are even more overlapping and repeated levies. Under normal circumstances, it is impossible for transit taxes, import and export duties, and transaction taxes to coexist.

Just using the road and paying the transit tax is enough.

Transaction taxes and import duties will only be incurred when goods are sold within the territory, but transit taxes and export duties are not applicable.

These detailed issues require someone who specializes in tax law to figure them out.

Although dark elves have a lot of contact with humans, no one can popularize tax law knowledge to them.

In other words, even if they know there is something wrong with the taxes collected, they don't know how to appeal.

Except for Hudson himself, it is estimated that no one knows that he is a lord who strictly abides by the laws of the territory.

In the eyes of the outside world, the taxation of the territory was entirely decided by the lord. The taxation imposed on the dark elves by the Xueyue Taxation Department is now under the instruction of Hudson.

In fact, Hudson only found out about the super high tax rate of 70% after receiving protests from the dark elves.

The previous actions were all decided by the subordinates themselves.

Every department has performance appraisals, and the tax department is no exception.

Most of Xueyue's properties are the private property of Mr. Hudson. When calculating the tax rate, no one dares to reach out.

Private transactions are also protected by tax laws. Once trouble occurs, you will also be held accountable.

The fat sheep of the dark elves was quickly targeted.

At first, everyone was just testing the situation. They never expected that the dark elves would pay the taxes without having a detailed discussion with them.

After the first collection was successful, the tax rate enjoyed by the dark elves later was fixed at 70%.

The wool of the foreign race will not turn white until it is sheared. Even the most conscientious tax officials have no intention of telling the dark elves that they are paying taxes twice and can apply for a tax refund.

After making mistakes for several months, the dark elves finally couldn't stand it anymore!

According to the 70% tax rate, no matter how rich the mineral resources in the inner earth world are, most of the minerals will lose their mining value.

Especially those bulk minerals, even if they are smelted in the inner world, are not cost-effective when transported to the surface world.

In this context, although the tax rates the dark elves bear are high, they do not pay much in-kind taxes.

It's just that because of their rarity, these "specialties" are extremely valuable in the Aslant continent, causing the tax department's performance to skyrocket.

“Marshal, that’s not how the account is settled.

The ultra-high tax rate of 70% is a disaster for both of us.

According to this tax rate, it is simply impossible for us to develop the resources of the inner earth world.

Apart from occasionally carrying some rare minerals, there is usually no trade at all.

If you lower taxes and make us profitable, then the development of the resources in the inner earth will definitely go further.

When the total trade volume increases, even if the tax rate is lower, you will be able to earn more! "

Elder Luticia tried her best to persuade her.

She didn't have time to delve into the types of taxes.

Based on her understanding of the human noble lords, these guys can only levy taxes that they can't think of, and there is no tax that they can't collect.

Relatively speaking, Xueyue collar is pretty normal.

At least there is no meal tax, drinking water tax, toilet tax, window tax, opening tax, closing tax, and even the door tax has been cancelled.

To be precise, there are very few weird taxes in the entire Alpha Kingdom.

It's not because the lords are benevolent, it's mainly because there are too few free people, and almost all the territories are serfs.

The serfs themselves were the property of the noble lords, so they naturally did not have to pay taxes.

When the cost of taxation exceeds the total amount of tax revenue, making taxation unprofitable, everyone’s enthusiasm for formulating weird tax laws will disappear.

"Theoretically, there is no problem, but how can we ensure that you will not evade taxes?

It is too easy to hide rare minerals from tax officials if they are mixed with bulk commodities.

Maybe after the tax law is revised, the taxes Xueyue Ling can receive will decrease instead of increasing.

In addition to economic benefits, there are also political implications to consider.

The orcs are the great enemy of the kingdom. A large amount of earth's core resources are pouring into the orc empire. This is to support the enemy! "

Hudson said with a smile.

If you look for problems, they will naturally exist.

Economic win-win does not mean political win-win. More often than not, political influence far outweighs economic benefits.

"Marshal, what do you want?"

Elder Luticia asked calmly.

Reason told her that since Hudson could spare time to see her, he must have some ideas.

If you simply want to refuse, just stay behind closed doors.

The most serious consequence is nothing more than the interruption of trade. These losses are not unbearable for Xueyue Territory.

“It’s very simple, you can avoid all taxes by selling me the resources from the inner earth directly.

After getting the money, you can buy everything you want from Xueyue, and everyone truly achieves a win-win situation! "

Hudson said without changing his expression.

How much money does it cost to collect taxes?

Only by keeping the dark elves and turning them into raw material suppliers can we truly maximize our profits.

Frankly speaking, the political risk is gone, but the economic risk is increased.

Monopoly raw material suppliers have a very strong say in downstream industries.

If something unexpected happens, it will immediately affect the development of downstream industries.

There is no perfect solution for Hudson, but there is one stupid solution, and that is to stockpile a lot of goods.

The industrial level of Xueyue Territory is in the middle and upper reaches of the Alpha Kingdom, but it is nothing when looking at the entire continent.

If you want to stand out in the competition and rely solely on your own strength to promote industrial upgrading, you don't know how many years it will take to get started.

Instead of wasting money on this, it is better to rely on better quality raw materials to stand out from the competition.

Once you occupy the market, capture profits, and then come back to promote industrial upgrading, the difficulty will definitely be greatly reduced.

"Marshal, selling them all to you would be..."

Before Elder Luticia could finish her words, Hudson interrupted:

“Your Excellency, don’t refuse in a hurry, this is also a good thing for the nobles.

If you calculate the distance, you will know that it is thousands of miles away from the cursed land to your territory.

Coupled with the distance to the inner world, transportation costs are definitely not a small number. The distance severely restricts the development of your industry.

What's more, the Dark Elf clan doesn't have many people to begin with. If you put a large number of clan members here, you will be in danger.

The Orc Empire is not a kind place. If you want to gain a foothold in that place where the weak and the strong prey on you, you can't do it without strength.

If you choose to cooperate with me, your people can get more time to practice instead of engaging in these meaningless things! "

After listening to Hudson's deception, Elder Luticia's position became unstable. Deep down, she couldn't help but greet the Hudson family again.

The dark elves' current predicament was entirely caused by Hudson.

If it weren't for Hudson's persecution, they wouldn't have settled thousands of miles away, thus staying away from the Earth's Core Passage.

Even without ultra-high tariffs and without taking into account the transportation costs along the way, this journey is still full of dangers.

The Orc Empire is not a peaceful land. There are endless bandits and bandits along the way.

The orc tribe in the middle is not a fuel-efficient lamp either. If you really want to transport it on a large scale, you will inevitably have your skin peeled off.

In theory, shortening the land transportation distance from sea transportation can reduce most of the troubles. Unfortunately, the dark elves are all landlubbers.

There are many merchants in the fleet led by Xue Yue, but these people all point to Master Hudson for dinner.

Without Hudson's permission, no one would dare to take on the Dark Elf's transportation business.

Viewed in series, this was clearly premeditated in order to force them to give up industrial development.

It's useless to know. The dark elves who have fallen into the trap from the beginning have no better choice.

Vaguely, Elder Luticia even felt that Hudson's proposal was good.

All mining uses slaves, and the raw materials are sold directly to Hudson. They only need to send a small number of dark elves to supervise it to complete it.

Not only does it save labor, but it also avoids being jealous of other orcs.

Compared with the endless flow of convoys, this kind of transaction that only exists between the two major forces is undoubtedly much more confidential.

The subsequent procurement of materials is nothing to worry about.

The Orc Empire has a developed smuggling trade, and the volume of transactions in the black market is even greater than the legal transactions.

If any tribe does not trade with human merchants, it can only prove that they are a small tribe of bumpkin.

When all the orc tribes traded with smugglers, the originally illegal business gradually became a legal industry.

If it weren't for the sake of face, the law prohibiting transactions with human merchants would have been abolished by the empire long ago.

"Marshal, this is a serious matter. This has exceeded my authority. It must be reported to His Majesty before making a decision!"

Elder Luticia said slowly.

She looked very embarrassed on the face, but she knew very well in her heart that as long as the transaction price was not too low, the deal would be considered a success.

After all, the dark elves are just a small clan. There is no problem in separatist rule. If they want to dominate the continent, they are just looking for death.

Affected by the number of clan members, it is destined that they cannot be involved in all industries and must make choices.

This aspect is somewhat similar to that of the elves. The difference is that in addition to themselves, the elves also have a large number of vassals.

"Your Excellency, please!"

Hudson said with a smile.

As long as he can achieve his goal, he has no interest in aggressive things.

After seeing Elder Luticia away, Hudson went straight to work.

Compared with a few years ago, the quality of talent in the territory has improved significantly, but there are still deficiencies in many areas.

For example: the layout of various industries is terrible.

Not only are they scratching their heads, but the entire continent is in the exploratory stage in these fields.

In order to pay less tuition, Hudson had to personally plan some industries.

Time always flies when you are busy, and a year is over in the blink of an eye.

This made Hudson very helpless. He originally worked hard in order to be able to lie down as soon as possible, but he found out that there was no end to the struggle.

The results are also impressive. Under his painstaking planning, the industrial structure of the territory has undergone earth-shaking changes.

It would be appropriate to double the value of industrial output.

If nothing else happens, we can continue to double our growth in the next one or two years.

It’s not about how fast the development is, but mainly because Xueyue collar’s ​​industrial base is low.

The growth rate of the Mountain Territory, which is also developing vigorously, is only a quarter of that of the Xueyue Territory, and this rate will continue to decline.

If compared with agriculture and animal husbandry, Xueyue collar's industry is a younger brother, and its output value is not even as high as fishery.

Being able to take it out on its own is mainly because Hudson is willing to invest in this aspect.

The plan is grand and the future looks promising.

Whether it can be realized depends on the opening up of the international trade market.

Since the failure of reform, Hudson had lost faith in the kingdom's internal market.

There is only a small size in total, and there are a lot of competitors. It would be very laborious just to support the industry of the Mountain Territory, let alone plan for the more ambitious Xueyue Territory.

According to Hudson's plan, Xueyueling's industrial investment in the next five years will be as high as five million gold coins, which is many times higher than the current industrial output value.

Once the production capacity is released, it will be almost the total industrial production capacity of the Alpha Kingdom, or even exceed it.

There is no place to digest such a large increase, so the only option left for the Xueyue Territory is war.

Taking steel as an example, the annual output of the Mountain Territory once exceeded 2 tons at its peak, but was cut in half twice as soon as the war ended.

No one objected to Hudson's generosity, because everyone knew that Hudson was preparing for war.

The destruction of the Orc Empire is not just words, but actual actions.

Once the war broke out, the important task of raising strategic supplies fell on the nobles on the front line.

The rear will also work hard, but due to distance limitations, the transportation cost will be a terrible number.

In this context, procuring strategic materials nearby is the best and only feasible option for the kingdom.

If you look at Xueyue collar's industrial plan, you will know that most of the industries revolve around war.

For example: Hudson's big steel plan has a production capacity of 150,000 tons per year.

In the agricultural era, apart from war, it was difficult to think of any other market that could absorb so much steel at once.

In fact, this is also true. Most of this steel production capacity will flow into the arsenal and become a killing weapon.

Including the new cavalry suit combination, which seems to be to make profits, but is actually preparing for war.

If it can be sold to other countries, it can also be used by our own people. Everyone is using weapons from the human race and there is no racial barrier.

Even the humble cavalry ration package is actually a weapon for future cavalry expeditions to the prairie.

A standardized production template is always better than a temporary batch of noodles.

If you start in advance, you can also spend more time studying the nutritional combination and taste.

Overcapacity affected the kingdom's economy, which was a problem after the war.

At least for now, the kingdom is very supportive of Hudson's industrialization.

With an additional reason to "prepare for war against the orcs", nobles from all over the country not only failed to be wary of the development of the Xueyue Territory, but instead supported many technical personnel from Hudson.

After taking a look at the assembled industrial development plan, a subtle smile appeared on Hudson's lips.

For such a big plan, it would be difficult to see results in a short period of time if Xueyue Ling worked on it alone.

It is a rare honeymoon period for cooperation, so we must seize the opportunity.

"Sir Jose, draft an official document for me on the "Preliminary Preparatory Plan for the Destruction of the Orc Empire". I will use it at the next palace meeting.

Emphasis is placed on the difficulty of logistics for a large army, and it is recommended that the royal government put the production of war materials on the front line as much as possible to reduce the kingdom's logistical pressure during wartime! "

Hudson said with a smile.

The more wool, the better. If it doesn't become white, it won't become dirty.

After understanding the position of the kingdom's nobles, it was natural to play the card of destroying the orcs well.

Once this proposal is passed, the kingdom's industrial production capacity will inevitably be transferred to the Near East and Xueyue Lake.

If you want to undertake the transfer of these industries, it is not something you can do casually. You must first have a complete infrastructure.

There are not many noble territories that can meet the conditions. Even if the meat is divided among everyone, the majority will fall on the Xueyue Territory.

Calculating purely in terms of profit is definitely unfair to the nobles in the rear, and it is completely cutting off their flesh.

If it were another enemy, whoever dared to make such a suggestion would be immediately scolded by everyone for being ambitious.

The only exception is the orcs. The power of hatred is too deep into the bones, and reason is not enough here.

As long as the royal government can promise to convert the contribution of these transferred production capacities to logistics into military merit, most nobles will be able to accept it.

(End of this chapter)