The Importance of Indirect Taxes in China

China's reliance on indirect taxes has minimized the crying out of its citizens because they do not recognize that the feathers in the state's hands are their own. The half-tax state requires minimal direct compliance by citizens and therefore improves the state's extractive capacity. After 1949, taxation actually was regarded as a very effective tour of class struggle between the capitalies and the working class. And then after the establishment of the planned economy and public ownership, some people thought, okay, now we had all of these public ownership and there is no need for taxation. Like this is public ownership. So everything belongs to the state. I mean, so this is this kind of like ideological debate, but still