Environmental protection this year caught more and more strict, so many businesses closed, cut production, and is full of complaints, there are so many small boss wail like ghosts and howl like wolves, the night of bankruptcy, the local government is full of contradictions, grasping it will directly affect the effect of GDP, tax revenue, influence on industry, may lead to social instability.

Why do the central authorities still strike hard and do so? On the surface, in order to control the environment, to give people a blue sky, but also the people clear river water, but also the people clean air. But that's not the main reason. The main reason is that:

A: clear economic development spoiler - dirty and messy informal enterprises

This type of enterprise in the early stage of reform and opening up is undoubtedly an important role in the economic development, solve a lot of employment, with a lot of taxes, but also contributed a lot to the GDP, economic development today, the domestic enterprises have no need to upgrade, or in the international market competitiveness.

But the transformation and upgrading of enterprises need to invest a lot of funds, these funds come from? By borrowing? Lending is only a temporary solution, after all enterprises need to have a good profit, to promote the transformation and upgrading of profit. However, the present situation is that the profit of the whole production enterprise is not high, mainly the selling price is low.

Why is the sales price of the products is not high profit margins are low? Mainly because there are many market showstopper. A formal enterprise needs to pay taxes, requires high cost, environmental protection equipment need to give employees pay full insurance, high development costs, good working environment cost and security cost of the work, in order to ensure the quality of products and services but also to have high management fees, so the high cost of informal enterprises.

But an informal business or workshop no these costs, even if there is little, such enterprises due to cost compared with formal enterprises low cost very much, so they can have sales with low price, and formal enterprises in order to obtain sales can lower the price, this leads to a formal business the sales price is low, the phenomenon of low profits. Therefore, this phenomenon is extremely unfair to the regular enterprises. So there will be informal enterprises will try to reduce operating costs, there are also tax avoidance, environmental protection equipment is not used and so on, will try to reduce the cost of raw materials, the cost of management, because only such a formal business as well as the living space.

Therefore, the economic development stage is the central Hobson must cut down those informal enterprises or enterprises are all gradually transformed into formal enterprises, but also can eliminate some of the excess capacity and backward production capacity. In this way, we can enhance the profits of enterprises, and let enterprises have more funds to invest in R & D, transformation and upgrading, and give more benefits to employees. Only in this way can the whole domestic economy enter a virtuous circle. Let our enterprises in the whole international market have true competitiveness.

Two: to improve the employment environment of enterprises

For all enterprises is sorely lacking talent, cultivate a good talent enterprises need to spend a lot of years, need a variety of training, but also need to spend a lot of money, but often a good training by other small enterprises high salaries, because small businesses do not have the talent training a large number of investment the time and cost of digging is the simplest and most rapid and lowest cost. This also led to formal enterprises are reluctant to train more talents, this is also extremely unfair phenomenon. For the employment of enterprises, we all feel that the current staff is very impetuous, dynamic, moving, even if they do not leave, do not want to do well, people are increasingly difficult to manage. Why does this happen? Mainly because there are too many informal enterprises in the society, I left here to find jobs everywhere.

Therefore, in order to change this phenomenon, the central government has to deal with the problem of reducing the number of non formal enterprises and changing the phenomenon of brain drain. Although informal enterprises dispose many also reduce jobs, may also bring the local turbulent, but this is not the way, because only in this way can the enterprise settle down to cultivate more talents, so that employees are not so impetuous, economic development can be better and more healthy. Like the war of liberation, many people have to sacrifice in order to build a new China. In order to build a good and healthy market economy, the environment can only stand the pain.

Three: effectively increase the government's revenue

Why a few years ago, the local government revenue is the main way to obtain land? Because the government money missing income by selling land can quickly get more revenue, which also pushed prices up to astronomical figures, so that people can not afford housing, but also to the entire people into real profits, from on the other hand also denied the real economy.

So now, only to let all enterprises regularization, we all pay taxes, no tax evasion, no tax avoidance, so that the government's fiscal revenue can be high, do not have to rely on land sales to obtain financial income subsidies. The government can better stabilize the society, better and truly serve the enterprise and serve the people.

For enterprises, if all enterprises are formal, then everyone's cost is almost the same