China's Taxes Heavy on Working Class for Little Public Services

Tax is the most important source of China’s fiscal revenue. In 2011, China’s taxation totaled nearly 9 trillion yuan, and in the past decade, China’s tax revenue growth rate has been twice the GDP growth rate. The government tax revenue to GDP ratio has reached 34.5%.

China has been ranked in the top tier of Forbes’ “Tax Misery” list.

China’s tax system structure is mainly turnover taxes, which accounts for more than 70% of the tax revenue. And most of it comes from the income of the working class.

[Mao Yushi, Economist]:
“Our government is very clever; it collects taxes from people without letting them know. People thought they didn’t pay any taxes, or just paid a regulatory tax. In fact, regulatory tax only accounts for less than 7% of total tax revenue. Most of the taxes are incurred when people buy things, make phone calls, turn on the lights, etc. But on your receipt there’s no indication of how much tax is included.”

The Chinese regime spent 38% on administrative expenses, but only 25.5% on public goods. However in the US, the government spent 73% for social security, healthcare, education, culture and other public goods, only 10% on administrative expenses.

A member of the CPPCC, a political advisory body, pointed out that according to the data released in 2009, six out of 10 surveyed provinces’ office space exceeded the standard configuration. The highest per capita office space is over 220 square meters.

The Beijing 2008 Olympics fireworks alone cost more than four times the total of the past 28 Olympic Games.