Economic Experts

[A Mafan]

HONG KONG (MarketWatch) -- China will unveil a package of business-tax reductions next year to help the economy, according to news reports Thursday.

 

While China's State Administration of Taxation plans to raise the minimum income-tax threshold, it will also lower taxes on small and medium-sized enterprises, the reports said, citing an anonymously sourced account in the Chinese 21st Century Business Herald newspaper.

 

The tax authority also plans to lower taxes on the service industry and high-tech companies, the reports said.

 

In a related move, Chinese officials also plan to continue export-tax rebates in 2010, Dow Jones Newswires reported, citing a Ministry of Commerce statement.

Edited December 24, 2009 by A Mafan (see edit history)

[RobertH]

Huh and..... Did you stock up on Cheetos before you went on deployment?

[Randy W]

Don't forget - they can afford to lower taxes

Edited December 24, 2009 by Randy W (see edit history)

[chengdu4me]

I was talking to the Principal at our school today. He got a message from the Chairman of the Board that our school qualifies for a 0% profit tax under this new guideline. The school also qualifies for a .005% interest loan for expansion/improvements. Here comes our Olympic swimming pools (3), a auditorium, a science lab and perhaps even a high school wing. He is a very happy man today! Who says they don't have Christmas in China????

[A Mafan]

Don't forget - they can afford to lower taxes

Because they don't have out-of-control spending is part of it, true.

 

But we got out of the recession caused by the Sept 11th attack on our economy by cutting taxes. It increased confidence in the idea that people could keep more of their money if they worked harder, so they worked harder.

 

It may be counterintuitive, but it works. And I'm confident China's economic growth after this will help provide more evidence.

[Daviation]

HONG KONG (MarketWatch) -- China will unveil a package of business-tax reductions next year to help the economy, according to news reports Thursday.

 

While China's State Administration of Taxation plans to raise the minimum income-tax threshold, it will also lower taxes on small and medium-sized enterprises, the reports said, citing an anonymously sourced account in the Chinese 21st Century Business Herald newspaper.

 

The tax authority also plans to lower taxes on the service industry and high-tech companies, the reports said.

 

In a related move, Chinese officials also plan to continue export-tax rebates in 2010, Dow Jones Newswires reported, citing a Ministry of Commerce statement.

 

Me thinks the Chinese are going to save capitalism... who would'a thunk it?

[mmpv]

HONG KONG (MarketWatch) -- China will unveil a package of business-tax reductions next year to help the economy, according to news reports Thursday.

 

While China's State Administration of Taxation plans to raise the minimum income-tax threshold, it will also lower taxes on small and medium-sized enterprises, the reports said, citing an anonymously sourced account in the Chinese 21st Century Business Herald newspaper.

 

The tax authority also plans to lower taxes on the service industry and high-tech companies, the reports said.

 

In a related move, Chinese officials also plan to continue export-tax rebates in 2010, Dow Jones Newswires reported, citing a Ministry of Commerce statement.

 

 

They aren't dummies, the strength of the Chinese economy is one of the claims to legitimacy for the CCP, they have too many mouths to feed not to do whatever is at their disposal to stimulate growth, especially with overall resentment about the gov. growing steadily over the years.

[Randy W]

Don't forget - they can afford to lower taxes

. . .

 

It may be counterintuitive, but it works. And I'm confident China's economic growth after this will help provide more evidence.

 

 

Yes - give someone money, they'll spend it. It works! The difference is that China has the money to give.

Edited December 26, 2009 by Randy W (see edit history)