Did taxes cause a financial crisis?

Taxation was not the cause of the financial crisis. Most of the financial crises are caused by economic bubbles, which will lead to the paralysis of the country's tax system and the shrinking of fiscal revenues.

Take, for example, the 1997 financial crisis

Direct triggers include:

1. The impact of upstream capital in the international financial market. There are approximately $7 trillion in liquid international capital worldwide. Once international speculators find out which country or region is profitable, they will immediately impact the currency of that country or region through speculation in order to make huge profits in the short term.

2. Improper foreign exchange policies of some Asian countries. In order to attract foreign investment, they have maintained a fixed exchange rate on the one hand, and expanded financial liberalization on the other, which has provided an opportunity for international speculators to take advantage of. For example, Thailand lifted the control of the capital market in 1992 before its own financial system was straightened out, allowing the flow of short-term funds to flow unimpeded, and providing conditions for foreign speculators to speculate on the Thai baht.

3. In order to maintain a fixed exchange rate system, these countries have used their foreign exchange reserves to cover their deficits for a long time, resulting in an increase in external debt.

4. The structure of the external debt of these countries is unreasonable. In the case of a large amount of medium- and short-term debt, a country's currency depreciation is inevitable once the outflow of foreign capital exceeds the inflow of foreign capital, and the country's foreign exchange reserves are not enough to make up for the shortfall.

Intrinsic underlying factors include:

1. High overdraft economic growth and expansion of non-performing assets.

2. The market system is immature. The first is to intervene excessively in the allocation of resources, especially in the loan investment and projects of the financial system; The other is that the financial system, especially the regulatory system, is not perfect.

3. The defects of the "export substitution" model. The "export substitution" model is an important reason for the economic success of many Asian countries. However, this model also has three shortcomings:

First, when the economy develops to a certain stage, the cost of production will increase, and exports will be suppressed, causing an imbalance in the balance of payments of these countries; Second, when this export-oriented strategy becomes the development strategy of many countries, it will form a mutual squeeze between them; Third, the step-by-step progress of products is a necessary condition for continuing to practice export substitution, and it is impossible to maintain competitiveness by relying only on the advantage of cheap resources. These countries in Asia, after achieving high growth, have not solved these problems.

The main factors of the world economy include:

1. The negative impact of economic globalization. Economic globalization is the economic ties around the world that are getting closer and closer, but the negative effects that come from it cannot be ignored, such as the intensification of the conflict of interests between nation-states, the enhancement of capital flow capacity, and the increasing difficulty of preventing crises.

2. The irrational international division of labor, the first and the monetary system are not good for the third world countries. In the field of production, the developed countries are still producing high-tech products and high-tech products themselves, and the technological content of products is gradually declining to the underdeveloped and underdeveloped countries, and the least developed countries can only do assembly work and produce primary products. In the field of exchange, developed countries are able to buy primary products at low prices and monopolize the marketing of their products.

In the field of international finance and money, the entire global financial system and institutions also favor financial powers.

Economic development is the basis of taxation. Without economic development, it is difficult to guarantee the quality and quantity of tax revenue. On the other hand, taxation, as a means of economic regulation, can promote the harmonious development of the economy and society by adjusting the objects of tax collection and tax rates.

So, in general, in the event of an economic crisis, the number of taxes will be reduced, and the burden of taxes will be "relatively" more inclined to the rich. **We will also take this as an opportunity to adjust the industry and economic structure through tax reductions and incentives, and try to cultivate new economic growth points.

Taxation as a lever for economic regulation should play a role in dealing with the economic crisis, and it must be coordinated with other means.

Economy and taxation, whether the economy determines the tax, or whether the tax determines the economy. Watch me learn about taxes today.

**La,'' came on the radio, and the students immediately took refuge under the desk, and after about 1 minute, the students immediately lined up and quickly withdrew to the playground. Don't think this is the real **, this school rehearses** escape. I can't help but think; "It's really coming, the house is collapsing, the factory is shut down, how can you survive."

I went home with a sad face with this question; Seeing this, the parents asked; ''What's wrong baby. ''I said; ''** is coming, the house collapses, the factory stops, what to do, how to survive. ''Dad said; ''We've got ** on our heads.''

''I said; What's the use. ''Dad said; There are taxes, taxes can be used to rebuild houses, rebuild roads, tax revenues are taken from the people, used for the people, and benefit the people. ''I broke the casserole and asked; ''And what is the tax?''

Father; ''Tax, divided into real estate tax, real estate tax, resource tax, special product tax... As if to say; Your salary is 8000 to 4500 per month divided by 10% of the tax, and the tax is used to subsidize the elderly over 60, and the family difficulties are given corresponding subsidies, and your tuition fees are paid by ** and so on. Got it.

''I said; ''Also, I understand better. ''Mother said again; This little helper for taxation is the invoice, which is an important tool for keeping tax records and providing strong evidence that the reluctant person has to pay the tax. ’’

Once, I went to the mall with my mother, and my mother saw a dress, but it was too expensive and had to give up, and we looked at a lot of places and bought a lot of things, and my mother put the invoice very well [I don't understand why], and after shopping for a while, I went back to the store and my mother decided to buy that dress, and the waiter said; ''Do you want an invoice?'' Don't be cheaper. ''Really, I still have to get an invoice.''

Mom said. On the way home, I couldn't figure it out, but I asked anyway; ''Mom, why do you need an invoice, is it so difficult that it can be reimbursed?'' ''Mom; ''Where can I be reimbursed, this merchant evades taxes, in order to seek more benefits, so ask you for an invoice.

Do you want them to evade taxes? If you can't do big things, you can't do small things. ''Is there any tax evasion in our family's factory?''

Mom said. "No, we regard paying taxes as investment, the more we invest, the more we will profit, and the tax is linked to the blood of the republic, we are linked to the blood of the tax, and the tax also determines the development of the motherland, and it also determines the future of the motherland." Taxation benefits both the country and the people. ’’

There are so many things that taxes do. With the adjustment of wages, the state funds ridiculed... Truly realize the prosperity of the people, seek benefits for the people, and gather treasures for the country. In this way, not only will China's science and technology be developed, but also the whole people will be realized.

Feng Jiaxin.