Trade War with China

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Anlsvrthng

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solarz said:
Christ, are you for real? Do you have even the faintest idea how economy works?

Wealthy people pay comparatively much less income tax than middle class citizens because they make most of their money from investments.

In comparison, VAT is proportional to a person's consumption, and wealthy people consume a lot more, so your statements proves the exact opposite of what you think it proves!
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Data showing different thing.
And I presume you don't have business.
In the UK you have to pay 20% tax on the business profit, and if you took out it from the business for personal consumption ( to buy car, tv, food, house ect. ) then you have to pay normal income tax as well.

Chinese VAT revenue 32%, income tax revenue 6% ( of all tax revenue)
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UK VAT : 18% , income tax:25%.
In the UK the top 10% of taxpayers contribute close to the 60% of paid income tax.

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There is no taxpayer break down in the Chinese data.

However we can say that the VAT paid mainly by the poor/middle class, the income tax is paid by the wealthy.

In China there is very small income tax revenue,compared to VAT.

It means that the Chinese wealthy very good to hide they money, and I think it is safe to say the main reason of the crack down on the money transfer out of country was partially due to this .

And the trade war , if the magnitude of transactions will decrease will be bad for the wealthy, they will has less chance to avoid the Chinese taxation system.
 
solarz

solarz

Brigadier
Anlsvrthng said:
Data showing different thing.
And I presume you don't have business.
In the UK you have to pay 20% tax on the business profit, and if you took out it from the business for personal consumption ( to buy car, tv, food, house ect. ) then you have to pay normal income tax as well.

Chinese VAT revenue 32%, income tax revenue 6% ( of all tax revenue)
Please, Log in or Register to view URLs content!

page 43

UK VAT : 18% , income tax:25%.
In the UK the top 10% of taxpayers contribute close to the 60% of paid income tax.

Please, Log in or Register to view URLs content!



There is no taxpayer break down in the Chinese data.

However we can say that the VAT paid mainly by the poor/middle class, the income tax is paid by the wealthy.

In China there is very small income tax revenue,compared to VAT.

It means that the Chinese wealthy very good to hide they money, and I think it is safe to say the main reason of the crack down on the money transfer out of country was partially due to this .

And the trade war , if the magnitude of transactions will decrease will be bad for the wealthy, they will has less chance to avoid the Chinese taxation system.
Click to expand...



1- Top 10% of tax payers means people who pay the most taxes, it doesn't mean the most wealthy people. Donald Trump boasted that he did not pay a dime of income tax for years.

2- China has very low income tax rates. The median income falls under the lowest tax bracket of 3%. Compare that to the Canadian median income of 34k/year, which after federal and provincial taxes rates are applied, comes to roughly 13%.
 
Air Force Brat

Air Force Brat

Brigadier
Super Moderator
solarz said:
Age is not equivalent to experience, and even for the lowest minimum wage, it is still a restriction on what otherwise should be market determined.



This is misleading statistics as it is heavily skewed by demographics. In Canada, the media individual income is only $27,600 but the media *family* income is $76,000. This is almost 3 times the individual median, indicating pretty clearly that people with families make more money.

Furthermore, there are high geographical discrepancies. Toronto has a media family income of $94,640 while in Montreal, it is only $76,950. You might think Torontonians are better off than Montrealais, until you realize that Toronto home ownership costs are more than twice that of Montreal.

"High paying jobs" is a relative term, and income only tells part of the story.




Like I said, "low wage" is a relative term. A couple in Shanghai can make twice what a comfortably wealthy family in Puyang makes, and still have to tighten their belt.

As for having more than one child, it's funny: everyone I meet in China complains that they can barely afford to raise one child, yet every one of them ends up having a second child a few years later.
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And you brother are having your's two at once,,, twice as much fun! maybe God's laughing at that one child limit?? I'm sure you love your twins, I wouldn't trade mine for life itself, they are the bomb!
 
Air Force Brat

Air Force Brat

Brigadier
Super Moderator
solarz said:
Oh I'm sure someone up there is having a good chuckle! I always said to my wife that I wanted three kids, I just never expected her to do two at the same time!
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Yes Sir! are your's boys or girls, or a mix?? Twins are definitely a beautiful experience, though exhausting at times... mine are 20 and gorgeous, but two very different little ladies!
 
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Anlsvrthng

Captain
Registered Member
solarz said:
1- Top 10% of tax payers means people who pay the most taxes, it doesn't mean the most wealthy people. Donald Trump boasted that he did not pay a dime of income tax for years.

2- China has very low income tax rates. The median income falls under the lowest tax bracket of 3%. Compare that to the Canadian median income of 34k/year, which after federal and provincial taxes rates are applied, comes to roughly 13%.
Click to expand...
It is supported by the data, the VAT income is several time bigger than the income tax .

It actually means that the wealthy pay small amount of tax compared to to her countries., considering that the VAT is represent a flat tax.
 
solarz

solarz

Brigadier
Anlsvrthng said:
It is supported by the data, the VAT income is several time bigger than the income tax .

It actually means that the wealthy pay small amount of tax compared to to her countries., considering that the VAT is represent a flat tax.
Click to expand...

No, it's not. Did you not understand a thing I wrote? The only thing your data shows is that China has very low income taxes. It in no way implies the wealthy pay more or less taxes compared to other countries.
 
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Anlsvrthng

Captain
Registered Member
solarz said:
No, it's not. Did you not understand a thing I wrote? The only thing your data shows is that China has very low income taxes. It in no way implies the wealthy pay more or less taxes compared to other countries.
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Do you know what is the VAT?

It is paid by everyone.
The wealthy has more income, but best part of that is spent for investment , so if there is low tax on this income, but high for VAT then the wealthy pay less tax than the middle/low class of population in China than say in UK.
And I have a feeling about that in China many wealthy using company car and many more item written down as company spending, means the VAT is not paid for those item .

What is so hard to understand in it? Basic arithmetic. The main thing is the ratio between the VAT and income tax.
 
FriedRiceNSpice

FriedRiceNSpice

Captain
Trump did a good thing in lowering income taxes for the middle class this year in the US, but not enough. US income taxes for middle class still much much too high.
 
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