China: China's Richest Ask For A Tax Break

Forbes ^ | 03/04/08 | Shu-Ching Jean Chen

[TigerLikesRooster]

China's Richest Ask For A Tax Break

Shu-Ching Jean Chen, 03.04.08, 2:41 AM ET

HONG KONG - No issue evokes more emotion in China than the widening gap between rich and poor. Zhang Yin, China's richest woman, touched a raw nerve on Monday when she effectively asked China's parliament for a tax break.

At the opening session of the yearly meeting of the National People's Congress, the plain-talking female founder of Asia’s largest containerboard manufacturer, Nine Dragons, called for a reduction of the income tax rate for the country's top earners--those making a monthly salary of more than 100,000 yuan ($14,050)--from 45% to 30%, and a raise of the floor for the top tax group to 150,000 yuan ($21,076) a month.

In an interview with the Nanfang Daily of Guangdong in which she discussed her proposal, Zhang, who is also known by her Cantonese name Yan Cheung, argued that lowering the tax rate for top earners would erase the incentive for tax evasion and prompt more of the wealthy to keep their money at home rather than in offshore shelters.

Zhang, who ranks 11th on Forbes' 2007 China rich list with a net worth of $3.4 billion, made the proposal in her capacity as an official delegate to an advisory body to the National People's Congress.

Perhaps not by accident, her proposal was echoed by another delegate, Lee Zhang, chairman of Deutsche Bank China, who also called for legislation to overhaul China’s high income tax rates to bring them in line with regional norms and boost China's ability to compete for top talent.

[TigerLikesRooster]

Hmm.. bribes getting too costly?

[TigerLikesRooster]

Ping!

[KarlInOhio]

called for a reduction of the income tax rate for the country's top earners--those making a monthly salary of more than 100,000 yuan ($14,050)--from 45% to 30%, and a raise of the floor for the top tax group to 150,000 yuan ($21,076) a month.

Well, if China's 45% tax rate on people making more than $168,600/year needs a new home, I'm sure our 'Rat party will be more than happy to use it (or more).

[underground]

Why does so-called ‘communist’ China have a top tax rate close to our own? Our own government is so far out of control its running out of international socialist states to compare us to and justify its existence against.

[gondramB]

Its gonna really suck if the bloody communists appreciate the value of low taxes better than our congress...

[MaxMax]

Are these the same people who don’t pay their employees?

[TigerLikesRooster]

Probably.

[EagleUSA]

Hey, if Hitlery or Osama were President there, you know what these guys would be told.....tax the wealthy.

[kinoxi]

Disgusting.

[M203M4]

Compare especially to FDR's tax policies (what was it, a 97% top bracket?). China seems to be "discovering" empirically what modern fiscal conservatives understand from first principles. The Chinese are literally testing different strategies in different regions of the country to see which work best. It should come as no surprise that they are slowly converging to a more capitalistic system (IMO, they will settle near to a Keynesian hybrid like that of much of Europe and, sadly, America, close to some "optimal" point where economic growth can best feed the collectivist maw of Marxist-redistributionist policies). Socialist authoritarianism once had a snappy name.

Our politicians are settling at a similar standard (driven not by principles connected to central planning, but by an ever increasing majority of government-dependent and semi-dependent voters who discovered that they can vote themselves largess out of the public treasury).

Just think about what the founders would say to today's tax levels (I mean, look what happened because of a damned FIVE PERCENT tax!!). There exist single corporations which pay more tax than 150 million Americans combined (incidentally, these 150 million Americans are on the receiving end of almost all government spending). Totally out of control - what will we say when China has lower taxes than America?

[bruinbirdman]

"Zhang Yin, China's richest woman, touched a raw nerve on Monday when she effectively asked China's parliament for a tax break."

I guess "from each according to their ability" is now out in Red China?

yitbos

[Schwaeky]

hell, they already have privatized Social Security and are working on an private insurance-based health care system.. now if we can get them on board with the whole one-man one vote and human rights idea, might become a more friendly climate to live in..

[Centurion2000]

what will we say when China has lower taxes than America?

We'll start looking for another country to live in.

[ari-freedom]

so who says free trade doesn’t work? this is exactly what we predicted.

[ari-freedom]

well china does have this nasty problem of killing and censoring people they don’t agree with

[redstateconfidential]

[redstateconfidential]

[ari-freedom]

I think they’ll be like russia with a flat tax and a Putin

[familyop]

Well over half of the businesses in China (~ 150,000) are owned by the government there.

[EagleUSA]

That video clip is just fantastic!!! That is what this country can expect if that evil commie witch gets into the Oval Office.