China Cuts Income Tax for Low Wage Earners

[IChing]

BEIJING (AP) -- China's legislature agreed Saturday to cut income taxes on the country's poorest workers amid official concern that the country's growing gap between rich and poor could fuel unrest.

Chinese who make less than 1,600 yuan a month ($198) will no longer need to pay income tax, up from the previous cutoff point of 800 yuan ($98), the official Xinhua News Agency reported.

An earlier government report said the cutoff point would be 1,500 yuan a month ($185) but it was amended upward in response to public opinion, Xinhua said.

The amendment to China's tax law was submitted to the legislature for deliberation in August. The government has warned that the growing gap could lead to serious social unrest if it isn't addressed.
http://hosted.ap.org/dynamic/stories/C/CHINA_TAX_CUT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2005-10-22-05-40-06

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I don't know why they didn't follow our lead and cut taxes for the rich?

[BulletproofLandshark]

1. Say what you will about the Chinese government

but at least they recognize the danger in pissing off the poor. It's a lesson our government would do well to learn before it hits the fan.

[halobeam]

2. Theirs is the only "growing" middle class, too.

Don't agree with a lot about them, but they do some things right.

[cire4]

8. China has one of the smartest governments in the world....

The Communist party pretty much picks and chooses its government officials from the top universities in China. If you are an upper tier econmics, history, politics, international relations, or philosophy student and can speak fluent English, then the Communist Party will pretty much roll out the red carpet for you.

There's alot of brains running Beijing. It wouldn't surprise me if they have surpassed Washington in that department

[On the Road]

11. It's a Good Move, But

the Chinese have already gone way beyond pissing off the poor. For all the human rights violations in the Mao era, wages in the countryside rose and the common rural people as much power in the government than the former class of Mandarins.

Since 1976, wages have steadily fallen in the countryside to the point where people are starving again and there have even been violent revolts.

This is a good move, but the government needs to do more.

[gizmo1979]

12. That was my thought too.

they realize they are in the minority and the poor have the numbers.I say let's repeat the french revolution,who has the guillotine?

[BlueJazz]

3. I like this line >>

"The government has warned that the growing gap could lead to serious social unrest if it isn't addressed".
That's because the Chinese pay attention to their Government....while 80 percent of Americans worry about the Menu at McDonalds...

[nothingshocksmeanymore]

9. No..it's because they pay attention to their recent past..and the current

crop of Chinese citizens grew up knowing that Mao Tse Tung came to power reminding people that you can't preach religion to a hungry person.

Be that as it may...they have a hell of a long way to go to take care of their own.

[NewJeffCT]

10. actually they don't

Chinese pretty much ignore their government... to them, the Communist dictators are maybe a bit better than the Emperors that came before them, but it's pretty much "meet the new boss, same as the old boss" type of attitude.

What the government there does very well is long term central planning. If traffic is a problem in Shanghai, they build a whole raised tier of highways above the current roads there (no eminent domain there). While traffic is not great in Shanghai, it's way better than Beijing. If the train station in Nanjing needs to be expanded, they expand it and knock down anything in the way of expansion.

and, it's probably why they will eventually upgrade their infrastructure/power grid.

[tk2kewl]

4. Whatta ya expect. They're pinko commie bastards!

:sarcasm:

[raccoon]

5. Maybe we better move to China, since

they cut income tax on the poorest workers.

Here in the USA, what does the government do? Cut tax on the richest!

[IChing]

6. China is a backwards nation, they also oppose the death(estate) tax

They need to follow our example of cutting taxes for the wealthy 1% of the population
otherwise the rich will be upset.

[TheFarseer]

7. I'm constantly amazed

how the Chinese seem to be making all the right moves economically and we seem to be doing everything exactly wrong.

[ebal]

13. Tax breaks

Yeah, I'd imagine all of the poor in the US can't wait to go live the standard of living the poor have in China.