Chapter 287 Pilot City
Lin Jia does not shy away from fully expressing his views, even though such views have not been mainstream for a long time and may not be appreciated by decision-makers.

But she still had to say it.

“After Yuan Guang met you last time, he came back and told me his suggestions.

In my opinion, Yuanguang’s plan is still conservative.

I think the best solution is to give money directly to low-income residents to promote consumption.

China will eventually transform from a producing country to a consuming country and enhance its internal consumption capacity.

If there are concerns about residents' savings, then residents should be given money that can be used directly, such as consumption funds, rather than consumption coupons.

Whether it is tax cuts or forcing companies to comply with regulations, these can all be means, but the most direct way is to give money.

I think we need to get to this point eventually.

I think the wave of unemployment brought about by Hornbill and other artificial intelligence technologies will far exceed the expectations of all the entrepreneurs present at the conference. After the wave of unemployment, a large number of people will not even have jobs. How can they enjoy the tax refund benefits?

Of course, this is just my personal suggestion." Lin Jia added after he finished speaking.

“Many people inside the company have also said that once the money distribution channel is opened, it can never be closed again.

It's the same as opening a floodgate to release water; you can't take the water back.

Once the floodgates are opened to release water, the hole will only get bigger and bigger and it will be impossible to close it again.

So we are still hesitating.”

"In the past two years, the central government has transferred the power of consumption tax to local governments, but it has not been well utilized and local governments are still heavily dependent on land finance.

The transition from land transfer income to consumption tax should be slower than Yanjing expected.

Essentially, it is because the society lacks a safety net welfare system that residents’ willingness to consume has not been able to increase.

Just like when home appliances went to the countryside, the government only spent 100 billion RMB to leverage a consumer market of 8900 billion RMB.

There is huge potential for residents' consumption, and giving money is a lever to directly and targetedly stimulate consumption. When all stimulus measures have failed and deflation has lasted for several years, it may not be a bad thing to give it a try.

Even if this approach has risks, it can be tried in local pilot areas.”

Reality will not change because of human will. Many countries are giving out money. China is reluctant to give out money due to historical reasons. But when it comes to this critical historical time point today, China has to choose to give out money.

Of course, for a behemoth like China, their transformation always comes slowly.

Not long after, China planned to use the municipality of Yudu as a pilot city to distribute money in stages.

For adult residents whose income is below the minimum standard, that is, below 2100 yuan, each person will receive 600 yuan in consumption funds per month, which can be used for shopping, paying for water, electricity and gas, etc.

In addition to residents, this benefit is more targeted at the elderly group. It is a benefit for people with little or no pension, and it is also a benefit for the unemployed.

For residents with an annual income below 5.9 yuan, a consumption allowance of 300 yuan will be issued to each person per month. This figure is based on the "Human Resources Market Wage Level and Enterprise Labor Cost Information in Sichuan and Chongqing in 2025."

This is the median salary of employees in Sichuan and Chongqing in 2025.

"This universal welfare protection mechanism was formulated under the guidance of Yanjing and based on the actual tax situation in Chongqing. It will benefit Chongqing's more than 567 million permanent residents, and it is estimated that annual fiscal expenditure will increase by billion yuan."

When Yudu announced the decision at a press conference, the reporters present were excited.

Any policy that is introduced will first be publicized and released in Dongda before being launched.

This time is no exception.

From traditional media to social platforms, it has long been rumored that Chongqing will serve as a pilot city for universal welfare protection.

It’s just that people generally don’t believe it because it goes against the traditional ideas of the older Chinese.

But later the rumor became more and more true, and economists from all walks of life came out to express their views in a vague way. After this incident, everyone believed that the government was really preparing to loosen its monetary policy this time, but the general expectations were very low.

It is generally believed that even if there is universal welfare, it will at most be like Hong Kong, where money is distributed in one lump sum. It is not money, but consumption vouchers, giving everyone consumption vouchers worth one thousand yuan, or even a few hundred yuan.

I didn't expect it to be a universal payment. This is already considered a universal payment. Although the amount is not much, it is available every month.

The reporters present exploded like hot oil in a wok.

"Hello, spokesperson. I would like to ask whether this kind of money distribution is based on personal income tax statistics or through some other method?"

“It’s mainly through personal income tax, through your monthly income.

In the initial stage, we will issue virtual consumption funds to residents’ Cloud QuickPass based on their monthly income.

Of course, we also take into account that the income of some residents will change dynamically. For example, it may be above the horizontal line this month and below the horizontal line next month. There are also some groups whose monthly income is below the median, but they will receive relatively generous year-end bonuses, and after adding the year-end bonuses, their income will exceed the median.

In order to avoid loopholes, in such cases, if the residents' income plus the year-end bonus exceeds the median, we will deduct the total amount of consumption money issued from personal income tax at the end of the year."

This is mainly to prevent some companies from paying their employees the minimum income every month, and then the employees can receive a relief fund of 600 yuan, with the excess paid out in a lump sum as a year-end bonus.

The policy makers obviously want to avoid this kind of wool-pulling behavior.

"Host, I would like to ask if there is a time limit for the consumption money?"

“It will be reset to zero on an annual basis.”

In essence, the Chinese elderly want you to consume the benefits they give you. They cannot accept giving you money but you save it instead of spending it.

"Moderator, I would like to ask whether this welfare policy is temporary or long-term, and whether it will be promoted nationwide in the future?"

"We will make dynamic adjustments based on the actual operation situation. As for whether the Chongqing City's universal welfare security system will be promoted nationwide in the future, I cannot give you a clear answer on this point."

"Host, I would like to ask whether this money is distributed based on household registration or permanent population?"

"It mainly covers the following two groups of people: one is those whose household registration is in Yudu, and their movements in response to phone calls are also in Yudu; the other is those whose companies related to social security are registered in Yudu, and their movements in response to phone calls are also in Yudu."

Yudu's universal welfare security system has plugged almost all loopholes.

After the press conference, the whole country was in an uproar.

Most of the discussion among netizens focused on why Yudu is the city. "Fuck, no one has money. There are many provinces poorer than Yudu. Why do people in Yudu enjoy such good policies?"

"At least Yanjing should go first."

“Why not Pengcheng? Pengcheng is the pilot city.”

All provinces except Chongqing are sour.

You are not the poorest province, and you enjoy good preferential treatment as a municipality. How can you get such good policies?

The biggest significance of this money is that there is a safety net measure. The amount of 600 yuan for consumption is definitely not a small amount.

In the past, suicide among elderly people in rural areas was very common. Since the introduction of basic pension, this phenomenon has been curbed. Even though the money is only a few dozen or a hundred yuan per person per month, it has still fully prevented the spread of the phenomenon.

For many elderly people, receiving 600 yuan a month can completely dispel their thoughts of suicide.

Even for the unemployed, 600 yuan can help them solve major life problems.

What is more important is the symbolic significance of this incident, which indicates that the older Chinese have finally begun to build a safety net system.

Local netizens in Yudu were delighted. After the press conference that day, fireworks were set off everywhere in Yudu. Even when they were not allowed, they were set off secretly, especially in some districts and counties.

The Tik Tok videos shot by local people in Yudu are all about revelry and showing off.

"I always see people saying why it's Yudu, and then they criticize the locals in Yudu on TikTok. What? If you're not convinced, look for your own reasons and whether you've fought for it."

Local netizens in Chongqing are fighting against netizens from other provinces and cities in China, and a quarrel has broken out on social media.

Many out-of-town students who went to Chongqing to study at university are already regretting it.

I regret not moving my household registration here. Generally, when you go to college, you can move your household registration to the collective household registration of the university you attend.

This also means that they missed out on the monthly benefits of 600 yuan, and everyone is urgently contacting the counselors to see if they can transfer their household registration right now.

600 a month is a year, which is equivalent to missing out on million, which is not a small amount for a college student.

Of course, not everyone is satisfied. Those who are above the median income, as well as people living in Yudu, will naturally feel dissatisfied because they cannot enjoy this benefit.

The annual income line is 5.9 yuan. Many people above this line only earn or yuan a month. Their lives are equally hard, but they cannot enjoy this benefit.

The impact of the Dancing Elephants is drastic. The pilot project in Yudu marks that China is truly trying to promote domestic consumption and stimulate the economy through domestic consumption.

Although it is currently only in one province, Yudu, but just like the abolition of agricultural tax, as long as there are no major problems, it will quickly spread to the whole country.

Old Hu, who had previously said that giving money to everyone was equivalent to not giving money to anyone, instantly jumped out and caught the frisbee.

It was as if what he said before, giving money to everyone is equivalent to not giving money to everyone, was not what he said.

But this doesn't count as giving money to everyone, at least there are different levels of difference.

"Recently, the mountain city of Chongqing announced an unprecedented livelihood measure - implementing cash distribution for residents, aiming to directly benefit low- and middle-income people. This move is a positive response to the current economic situation and a vivid interpretation of the people-centered development concept.

Faced with new economic challenges and new development requirements, Yudu has the courage to innovate and take on responsibilities.

This is not just a direct disbursement of funds, but also a boost in confidence and a direct improvement in the quality of life of low- and middle-income people in society. It allows the general public to enjoy the dividends brought by urban development. Such measures will undoubtedly greatly enhance the sense of gain, happiness and security of citizens, and inject strong impetus into the sustainable and healthy development of the city."

Some financial media wanted to do more in-depth reporting, and Outlook magazine found the former governor of Yudu, Mr. Huang, for an interview.

Mr. Huang himself also likes to speak in the media. He is an economist in China with sufficient practical experience. In a sense, he has a unique influence on the Chinese economy.

"I can reveal some specific details to you. First of all, the reason why there is such a heated debate outside is Yudu. This is because Yudu was the pilot city for the real estate tax. The housing prices in Yudu have not changed much over the years. Compared with other cities, the housing price growth lags far behind, which is related to the real estate tax pilot.

So this time I chose Yudu.

Another reason is that Chongqing is very large. Although it is a city, it has a wide range and covers different classes in China. It is very representative and has reference value. The experience gained from the pilot project here can be promoted nationwide.

Of course, there are some other reasons. For example, Chongqing is the earliest pilot city for driverless cars. A large number of driverless car tests are conducted in Chongqing. Chongqing has a rich manufacturing industry. The employment population in these manufacturing industries has been severely impacted by artificial intelligence factories, and this impact will be even more severe in the future.

Chongqing has strong pilot characteristics.

If the experience of Yudu is good enough, it will be promoted nationwide soon. If not, it will need to be adjusted.”

"Of course, our payouts can't compare to America's.
Like the American government, citizens can receive $1200 in benefits every month, and each child under the age of 17 can receive $500 in benefits.

Their criteria is that if you are single and your annual income is less than $7.5, you can get a $1200 benefit.

If you are married and a couple, and your household income does not exceed $15, each person can receive $1200 in relief.

Their standard for distributing money is also very low, and they directly distribute US dollars, and the amount of money distributed is also very large.

Of course, we can't borrow money from all over the world like America did. We have only taken the first step in building a safety net system.

But this number is definitely not small. For example, the money distribution in Hong Kong is only a one-time thing. They have issued electronic consumer vouchers to permanent residents in Hong Kong three times in three years, with a total of 2 Hong Kong dollars per person.

We give low-income residents 600 yuan per month, which will be more than they get in three years.

This income can already meet the minimum living requirements of residents, and this money is enough for basic survival.”

"Of course it may cause some people not to work, nothing can be all good without any disadvantages.

We cannot just see the negative effects and not the positive ones.

Promoting consumption is the most basic thing. In the past, money could not be distributed to residents. Whether it was lowering the credit threshold or issuing specific bonds, these measures caused the currency to spin in the system and did not help promote consumption. This kind of universal consumption subsidy can definitely leverage more consumption power than the amount distributed.

What’s more important is that it can truly enhance residents’ sense of security and let urban and rural residents realize that we have a safety net.

This is conducive to entrepreneurship and innovation, and helps encourage our young people to try more. A society where everyone takes the civil service exam is obviously unhealthy, and I even think it’s a little late to do it now.”

“This figure has actually been calculated and is an amount that Chongqing can afford.

Chongqing's total fiscal revenue for the year is 7863 billion yuan, and the total amount of money distributed accounts for about 5% of the annual revenue. This proportion is within the acceptable range. At the same time, the economic stimulus effect that can be generated can bring in new government revenue, which will reduce this proportion again."

(End of this chapter)