China To End Farm Tax

China throws farm tax

March 08, 2006


BEIJING, MARCH 8: Amid China’s efforts to bridge the widening chasm between the rich and poor, the government has thrown agriculture tax into the dustbin of history, rescinding the 2,600-year-long practice which could improve the lot of some 800 million peasants.

“We will completely rescind the agricultural tax throughout the country, throwing it into the ‘dustbin of history’ after a history of 2,600 years in China,” Chinese Finance Minister Jin Renqing said. The reform of rural taxes and fees will reduce the financial burden of 800 million rural residents by about $15.63 billion a year, he said.

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Is this China saying it see's a connection between cutting taxes and reducing poverty?

some economists say France and Germany are "more socialistic" than China
trying to be friendly?

Originally Posted by Motion

Is this China saying it see's a connection between cutting taxes and reducing poverty?

Sweden has the highest taxes and it is the most egalitarian nation in the world. I don't see it.

If your theory is correct, Sweden should be a third world shit-hole.


Maybe, China is just switching to progressive taxing instead of regressive taxing.

Originally Posted by Inquiring-Mind

Sweden has the highest taxes and it is the most egalitarian nation in the world. I don't see it.

If your theory is correct, Sweden should be a third world shit-hole.

Well not necessarilly, Sweden does have capitalism which it could be said is the real engine of it's economy. Plus,Sweden and other Scandinavian countries don't have the problems of rampant corruption that can hurt economies by turning away investors. As far as their high taxes,even some Swedes have questioned the effects of this on the long run growth of their country.

An interesting view of Sweden:

http://www.capmag.com/article.asp?ID=2210

China is trying to reduce its massive rural poverty so cutting the amount of taxes rural people pay makes. Progressive taxing.

Brussels, Belgium, May. 17 (UPI) -- Most European and U.S. policy makers agree the key to social progress is economic growth and the way to boost competitiveness is to cut taxes, trim welfare spending and slash red tape. So how do the five Nordic countries manage to top almost every global league table -- whether on competitiveness, gender equality or high-speed internet access -- while having the highest taxes, most generous welfare systems and most stringent labor and environmental laws in the world?

http://www.washtimes.com/upi-breakin...5049-2382r.htm

this is not progressive or regressive, if u live in NYC or London, u won't feel bad to live in Beijing. but if u live in a American farm, u r doomed if u move to a Chinese village

Chinese government will be considered immoral if it collects tax in the village

Inquiring-Mind,

I remember reading I think about Sweden,where their economic competivness was related to them cutting business taxes. But they made-up for it by raising taxes on income to finance their social programs.

Before Sweden started slashing business taxes they had problems with Swedish businesses relocating to countries with lower taxes.
-----------------------------------
Sweden - a magnet for foreign investors

Low taxes

Taxation is another factor. While Sweden has high personal taxes to fund its comprehensive welfare system, it operates a favorable tax regime for business.

Corporate tax - the tax on a company's earnings - is the second-lowest in the EU at 28 percent...


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Originally Posted by HikerHauk

this is not progressive or regressive, if u live in NYC or London, u won't feel bad to live in Beijing. but if u live in a American farm, u r doomed if u move to a Chinese village

Chinese government will be considered immoral if it collects tax in the village

That ship has sailed, buddy. The Chinese government is about as immoral as they come.

Originally Posted by Motion

Amid China’s efforts to bridge the widening chasm between the rich and poor...

And I thought communism was supposed to eliminate rich and poor altogether. I guess communism works better in theory than in practice.