China's Major Tax Problem
Economics Explained
00:00
China Taxes - The Problem Is That Most People Don't Pay This Tax
China does have traditional progressive income taxes, ranging from three % up to forty five% depending on how much citizens earn. Most people in china are still employed in the informal economy. It is a narrow minority who are wealthy enough to have a formal job, while not being wealthy enough to avoid tax that end up paying it. Levying income taxes on just a small portion of the population means that the chinese government really does not have that much control over the economy if it's going in any direction other than up.
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