Question : How is China's Corporate Tax Rate less then USA's

[FreakinDJ]

My understanding is China has a 25% Corporate Tax Rate WITH a 10% Capitol Gains Tax ON TOP. Additionally they also have a VAT "Value Added Tax" of 13 - 17%. Which if your exporting goods to America are transferred directly to the end consumer.

What they do have is targeted Tax Breaks for Corporations engaged in manufacturing Electronics / IT

That would appear to me to be more of a FAILURE of Free Trade rather then a fault in the US Tax Code

edited to add link - http://www.bjreview.com.cn/business/txt/2009-08/03/content_210354.htm

[dipsydoodle]

1. Surely the VAT doesn't apply to exports ?

That's how it is in Europe.

[FreakinDJ]

2. Your right - Epic FREE Trade Failure

It only applies to Import goods = Additional Tariffs

Exportation of goods (except where otherwise stipulated by the state) (0% )

VAT on imported goods is collected by China's customs on behalf of the tax authorities

[dipsydoodle]

3. So it does work the same as here.

VAT only affects the population - it replaced various forms of purchase tax. Its a touchy subject with me re. imports because of the sheer number of banjos and guitars I've bought from the US over the past 9 years.

This might amuse you : http://news.bbc.co.uk/1/hi/business/5204422.stm

[FreakinDJ]

7. EU has had it share of Tax Fraud

Remember the Cap and Trade taxes being fraudulently collected

[Necromancer]

4. They learn from Ameria's history of "Free Trade"

Example: Henry Ford was building cars that ran on corn based ehthyl-alcohol. Ford's fuel captured 25% of the fuel market. This fuel, and Ford's cars, put power into the hands of regular people like farmers and such. Anyone who could make "moonshine" could make fuel for cars and as we know there were plenty of "moonshiners" around in those days. Hell, running moonshine is said to be the beginnings of Nascar.
Anyway... J.D.Rockefeller(founder of Standard Oil) did not like that Ford's fuel could be made so easily and already controled 25% of the fuel market so he began funding an amendment that would later be known as Prohibition. Prohibition outlawed ALL production of ANY kind of alcohol. Therefore, prohibiton outlawed the fuel that Ford's cars ran on. However, Ford kept building those cars anyway for TWELVE years until he finally gave up. One year after Ford quit building those cars Prohibition was lifted. Coincidence? I think not.
American history is full of those kinds of "Free Trade" practices. Check into the history behind Edison, Westinghouse and Tesla. Same old crap.

[FreakinDJ]

5. Welcome to DU

[Ichingcarpenter]

6. Welcome to DU..

I know that history.

On edit.. the chinese don't have their holding companies in the Cayman Islands or other
Pirate Islands of the Caribbean. US companies
sit on one trillion dollars of cash there that the US can't tax.