Starting from the Planetary Governor - Chapter 1247 - 702, "Alliance Plan

Chapter 1247: Chapter 702, “Alliance Plan

Building relationships with entities like Battle Groups, the Tribunal, and local forces is a strategic diplomatic activity for foreseeing potential challenges.

However, among all diplomatic activities, the most crucial one, or rather, the one needing the most diplomacy, is none other than Holy Terra.

All other diplomatic efforts are aimed at securing a better political environment from Holy Terra.

In this context, it is natural not to neglect activities involving the Central Empire and Holy Terra itself.

Gu Hang is preparing a detailed development plan document.

This document is not only a display of the Alliance’s existing resources and development potential but also a commitment to the future.

It includes the current economic and tax status of the Alliance and the Five Major Star Domains, as well as projections for these areas in the future.

Military security and political security are also among the series of topics mentioned.

With the assistance of the Governor’s Office, this extensive and detailed plan report is already being drafted.

Ultimately, the most important point in this is taxation.

The Alliance promises that in ten years, the Five Major Star Domains will stably contribute 1.3 trillion in tax currency per year.

This is calculated based on a population of ten trillion. Normally, a Level 1 development is 1 trillion a year, but there are some planets with higher development levels, and the Alliance has committed in the report to develop some worlds less affected by war into higher levels to pay more taxes.

Although this pertains to ten years later, the Alliance will not avoid tax obligations during these ten years.

On the contrary, the tax amount is still quite high. According to calculations, starting next year, the Alliance will resume paying the Imperial Tax every two years. The tax amount for the first year is approximately 370 billion.

This includes the total taxes from the Dragonhawk and Meng River star domains, and from the newly occupied regions of Scythe, Alfonso, and Thistle and Mustard, specifically the worlds less affected by war, which do not require re-colonization and can immediately restore their tax contributions to the Empire.

As for those worlds severely affected by disasters, taxes are uncollectible as usual, and the Empire typically grants them some time to develop.

The Alliance has provided detailed explanations for each of these worlds that cannot complete tax payments, including a timetable for when they can fulfill their tax obligations in the future.

The Alliance believes that this proposal holds great appeal for the Central Empire.

The most important issue for the Empire is taxation.

The Empire’s military, war efforts, and various institutions all rely on the supply of Imperial Tax. Without the Imperial Tax, there is no Empire.

Generally, according to political conventions within the Empire, 30% of a planet’s tax goes to the Star Domain Government, 20% to the Space Domain Government, and only 50% can be called upon by the Central Empire.

This is under theoretical conditions.

In the vast span of the Empire, most taxes are paid in the form of goods, and transportation losses, fleet fuel, time, the cost of building Tax Fleets, and the risk of being plundered during transport—all these can be factored into tax costs.

The tax costs for Star Domain Governments are relatively low, being nearby; the costs for Space Domain Governments are higher, with three to four-fifths being normal; in the Central Empire, costs rise to 50% or 60% being very normal.

The Empire has already tried every method to solve this problem. For example, building central warehouses in various locations for nearby collection, storage, and deployment; or using tax currency to directly mobilize the resources of each planet, star domain, and space domain to work for the central authority, using tax currency to offset goods and thereby reducing the inevitable losses in physical transfer.

However, ultimately these methods can only be considered as mitigating strategies for high losses, unable to completely resolve the issue.

Yet, the content promised in the Alliance’s development document is to find a planet in the Thistle and Mustard Star Field, the star domain closest to the Central Territory, to serve as a dedicated hub and transfer point, settling the agreed tax amount at that location in one clear transaction.

What does this mean?

The Central Empire gets to skip allocating funds to the Star Domain Government and Space Domain Government!

This single move increases the Central Government’s theoretical revenue by 50%!

Additionally, a single settlement eliminates the need for individual payments and reminders, saving a vast amount of tax costs. At that time, the Central Empire only needs to focus on getting money from the Alliance every two years, making a centralized payment in one location. The Empire’s Tax Fleet just needs to travel to the Thistle and Mustard Star Field once to handle all matters.

Tax costs could drop from nearly 60% to no more than 20%!

This is another huge increase!

By directly calculating the numbers, it becomes clearer.

The total tax revenue from the Five Major Star Domains was about 1.7 trillion tax currency before the war. The amount the Empire could receive annually at the central level was about 850 billion tax currency, but the portion that could actually be transported to the Central Empire for use would drop to 340 billion.

These are theoretical figures. In practice, due to the existence of the Alphonso Religion, an exempt super-institution, and Alphonso, a local stronghold that regularly intercepts taxes and reverses demands money from the Empire, even with the transportation loss factored 340 billion, the Central Empire receives far less.

According to statistics from the Central Department of Taxation, getting 100 billion a year would be considered fortunate.

In the future, if the Alliance obediently retreats to the Dragonhawk Star Domain and relinquishes other locations, and the Empire rebuilds the Space Domain – Star Domain – Star Sector administrative structure in those areas, the theoretical tax collection of the Empire would drop from 340 billion to 200 billion, with the received tax amount potentially only reaching 80 billion.