IS TAX in China High?
Is tax in China high? Forbes announced that China’s tax has become the second higher globally as early as in 2009. What’s going on these three years? China tax becomes higher. Whether tax collection is good or not depends on people’s happy index. People pay the tax which construct part of financial revenue so the most important key of the question is if increase of financial revenue brings people benefits deserved or not. If it does then there is no argument on high tax. However, the fact is disappointing.
The registered permanent residence accounts a lot in the happy index. For example, you are now in Shanghai but your registered permanent residence is in HeBei. You paid the same amount of tax revenue as the native, but you receive different service from them. It seems to have been a hidden rule that the native enjoy better benefits than the nonnative. How can non-native improve their happy index? In other words, how can the tax-payers benefits from their tax or financial revenue?
Some people believe China should decrease the high tax since tax-payer can benefit little from their own money, own labor. While others believe that it is better to improve social welfare in hygiene, education, medical treatment rather than reduce tax directly. If a person earn10,000￥per month, after tax raised, he should pay 200￥less. However, this 200￥changed nothing, life is as usual.
Actually, tax mechanism is not perfect. Repeated tax collection can be indicated in many aspects. Such as in logistic field, if you want to deliver something, you have to pay more delivery fees than before because every more turns, more repeated tax have been collected. You can imagine how much tax that online businesses like geminideal supplying worldwide free shipping goods would be collected. For them, small profits, quick turnover will be all that they living for.
China now totally collects 19 kinds of revenue among which only 3 kinds namely business income tax, personal income tax, vehicle and vessel tax are collected in legal form. The other 16 kinds including value-added tax are collected in provisional regulations form. Some people doubt: My salary hasn’t been increased for four years, but prices rose year after year. I paid so much tax revenue why my living standard went down so quickly?
Compared with other countries, tax in China, in fact, is not high. Why common people still feel heavily burdened? This mainly relates to expenses constructions of financial revenue. If a country is not able to restrict government power, it can’t be better to collect less tax. When people are rich, the country will be strong fundamentally.
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