the same
, now practically consumed, BMP product, where under this inflation rate he will have in the best case some 10-15% of the sum (and for the buildings maybe just 1-2%!). In this way the company, in fact, pays taxes for gains which
in no way are gains
, but this is subject for additional calculations with which let is not diverge now.
So, and in order to convince ourselves that our calculations were close to the real ones, let us vary a little some of the parameters in the formula (2). For example, for a more respectable company the profit tax will be 40% (i.e.
d = 0.4
) and then we get
a = 100,000 /( 0.6(1-b) - 1.4 b ) = 100,000 /( 0.6 - 2.0 b )
(4)
and
bmax = 0.6 / 2 = 0.3
or 30%, what is even worse, how it has to be expected. (Table for
a
as function of
b
in this case we will not give in order not to bore much the readers.)
If for this more "normal"
d = 0.4
take also a more proper personal salary of 25,000 lv nominal in month (or 20,000 lv net in month), then we must vary
e
to 240,000 lv for an year, thing which may be expected to happen as
prognosis
for the next year beginning from October 1996, and then is right to accept
c = 2.0
(i.e. 200%, hopping that the shocking bank interest of 300%, after all, will not remain in effect for very long time) and then we will have:
a = 240,000 /( 0.6(1-b) - 2.0 b ) = 240,000 /( 0.6 - 2.6 b )
(5)
i.e.
bmax = 0.6 / 2.6 = 0.23
or 23% (by
c = 3.0
, as it is in the moment, we get
bmax = 0.6 / 3.6 = 0.16
or 16%!). This last thing, that
every small
business with material consumption about 20%
already
is ineffective for his owner, between us said, is
pure communism
! It becomes a bit "splotched" by the fact that the big manufactures, obviously (though for other reasons) are also ineffective, when hundreds of companies are privatized!
These calculations have been done for trading companies, that pay profit tax, not for individual entrepreneurs (IE), who pay income tax (IT), but in reality the things don't differ much, because for 430 ths lv annual profit, for example, one must pay income tax in amount of 112 ths lv (by the table for 3,500 lv minimal monthly salary), what is tax of 26%, but if one adds also some minimal payment for social security it comes to 28%, what is practically equal to 30%. (Compare with Table.1, where for
b = 0.25
we have
a = 571,000
lv gain, or profit before subtracting taxes
(1-0.25)*571 = 0.75*571 = 430
ths lv, i.e. exactly as much as we have just now used by the calculations for IE. Besides, these sums are entirely real as average numbers for IE, if one does not deceit.)
Could something, still, be bettered? Alas, there are not rose coloured perspectives, because even lessening of the profit tax to 20% for the small companies (a thing that hardly some government, no matter of what colour, will allow itself to do, because this makes strong impact on the state budget) will give
bmax = 0.8 / 2.2 = 0.36
or 36% instead of former 33% (other things being equal), so that this has almost no effect on the production.
The only way out of the mess is lessening of the profits from bank deposits (i.e. stopping of the inflation and stabilizing of the economy). By
c=0.5
, we have
bmax = 0.7 / 1.2 = 0.58
, what now is quite good. In the same time, by
c=0.3
, or 30% (which was the ambition of communist socialists, BSP, but it turned out that these "dear people" — their beloved addressing to the masses — have done their calculations without "the barkeeper", as the saying goes) we get
bmax = 0.7 / 1 = 0.7
or whole 70%.
So that it remains nothing else to us except to whistle the song "The communism is going back and strong embraces people's necks" (there was some joking song "The communism comes back"), because both, there are no conditions at all for whatever small business, and we have become so poor that are left only with our begging bowls (without quotes), with our minimal monthly salary of about 20 US dollars (or less than a dollar a working day, if you like it better so).
October 1996
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Сконвертировано и опубликовано на http://SamoLit.com/
