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11 African countries are richer than China. [Copy link] 中文

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Post time 2011-5-11 14:38:30 |Display all floors
but why in practice, most richest Chinese moved or plan to move out of mainland China?


Certainly not because of foreign food, I presume. I believe it is because some western countries still respect private ownership much more than China does - according to China's communist constitution, everything belongs to the government, not to private individuals. So some rich Chinese are afraid that once they get in troubles with the government, their wealth will be taken away. This can't happen abroad.
This especially counts for old government officials who made a lot of money with bribes...

And to maintain the lifestyle they like, they can still hire a cook and perhaps one or two employees abroad, who can supply them with their most loved Chinese food.

Another reason I saw was that many rich just wanted to appear "sophisticated" by adapting a "sophisticated western lifestyle" - which means they go to opera, drink expensive vine and buy western luxury goods. However, most of them don't really understand why a good vine is good and what is so special when Papageno's mouth gets locked up for lying in the opera... but there are exceptions, of course.

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Post time 2011-5-13 12:50:03 |Display all floors

Reply #22 Everynowhere's post

High taxes, people just don't want to earn more money - to be TAX AWAY by the state!

common sense!
So, China must use REVENUE MERCHANT, and increased state efficiency!
Workers will only want to see their tax should go to SOCIAL SECURITY purpose!

cheerios!

Green DRagon
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Post time 2011-5-13 14:48:11 |Display all floors
High taxes, people just don't want to earn more money - to be TAX AWAY by the state!  common sense!


That theory doesn't apply fully to developing countries like China. While it might work for a white collar worker in Shanghai, it surely won't work for a migrant worker: a migrant worker will work more if things become more expensive because he wants to pay for his and his family's basic needs. That's the poverty trap.

However, I do agree that Chinese government must increase it's efficiency - remeber, inflation is also a kind of tax (earned by the government as the government has very low interest rates on gov bonds). And the real estate bubble is paying up to 80 percent of the expenses of local government.
So if the governments improve their efficency, there will be less inflation and even migrant workers get to an income level on which your tax theory applies, so that the central government does have a stronger incentive to lower taxes.

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Post time 2011-5-16 14:04:13 |Display all floors

Reply #24 Everynowhere's post

Migrant workers aren't tax, their income is lower than the Rmb2,000 level!

and if that migrant worker works part time to increase income, definately, he won't be reporting it.
eg. The Bangladesh landscape worker in my city - earns a salary of Rmb2,300 a month - he moonlights "cutting grass", "painting" and earns double his salary. He doesn't pay tax because he reports only the regular pay job, the "moonlighted" job - could bring him above the threshold of taxable income of Rmb4,300 a month - goes unreported.

cheerios!

Green DRagon
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Post time 2011-5-16 18:45:48 |Display all floors
@greendargon:

Income taxes aren't the only taxes that exist. There are also VAT (value added tax) and inflation (which is a kind of tax too - higher prices mean government debts worth less). So in the end of the day, migrant workers have less money in their pockets and need to work harder if they want their child to get a decent education, have enough food and pay for their rent. Therefore, I don't think they will work less.
However, this is just a theory. Empirical data is scarce and inaccurate, so I can't really proof this.

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Post time 2011-5-17 12:27:12 |Display all floors

Reply #26 Everynowhere's post

Indirect tax is not high!
The game is to transfer tax to FUEL USE, Vice Trades and less to consumer goods.
Having efficient government has an amazing effect.

cheerios!

Green DRagon
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