New taxes may take toll on China
Under Xi Jinping’s leadership, China has instituted record tax cuts. It’s politically expedient: paying little to no income tax arguably makes a population more compliant. But the cost is beginning to bite. The alternative — increased taxes — is likely to bring backlash from the wealthy and the middle class
22 June 2023 - 05:00
In the coming years, Chinese President Xi Jinping will come under pressure to do something he’s never done before: oversee nationwide tax increases that could alienate the country’s wealthy and its middle class.
Xi has presided over the largest tax cuts in China’s history. Tax revenue equalled 21% of GDP in 2021, against about 27% in the US. And less than 10% of the population pays any income tax at all. ..
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