reply to post by HenryNorris
China is just in the proccess of stageism. They are in a capitalist empire and must play the capitalist game to beat America at it. China has
beaten America at their own game.
No, cause America doesn't have a billion + 1 workforce under COMMUNISM supporting the state in everything they do. you cannot compare the two
economies without factoring in that stat.
And its an arrogant western attitude to take away from Chinas rise by saying its simply because the affluent OPEC nations have exploited them.
OPEC exploits lots of places. The CPC is smart. They have long term plans and are not influenced by the imperial west. China has protected their
people ans now has better infrastructure than America and the standard of living continues to rise.
China exploits nations the same as the OPEC nations do. Rare earth minerals rings a bell. China has the capital to spend on these projects because
of the fact that they collect billions in taxes:
Turnover taxes. This includes three kinds of taxes, namely, Value-Added Tax, Consumption Tax and Business Tax. The levy of these taxes are
normally based on the volume of turnover or sales of the taxpayers in the manufacturing, circulation or service sectors.
Income taxes. This includes Enterprise Income Tax (effective prior to 2008, applicable to such domestic enterprises as state-owned enterprises,
collectively owned enterprises, private enterprises, joint operation enterprises and joint equity enterprises), Foreign Investment Enterprise and
Foreign Enterprise Income Tax ("FEIT"), and Individual Income Tax.
These taxes are levied on the basis of the profits gained by producers or dealers, or the income earned by individuals. Please note that the new
Enterprise Income Tax Law of the People's Republic of China has replaced the aboves two enterprises taxes as from 1 January 2008.
Resource taxes. This consists of Resource Tax and Urban and Township Land Use Tax. These taxes are applicable to the exploiters engaged in natural
resource exploitation or to the users of urban and township land. These taxes reflect the chargeable use of state-owned natural resources, and aim to
adjust the different profits derived by taxpayers who have access to different availability of natural resources.
Taxes for special purposes. These taxes are City Maintenance and Construction Tax, Farmland Occupation Tax, Fixed Asset Investment Orientation
Regulation Tax, Land Appreciation Tax, and Vehicle Acquisition Tax. These taxes are levied on specific items for special regulative purposes.
Property taxes. This encompasses House Property Tax, Urban Real Estate Tax, and Inheritance Tax (not yet levied).
Behavioural taxes. This includes Vehicle and Vessel Usage Tax, Vehicle and Vessel Usage License Plate Tax, Stamp Tax, Deed Tax, Securities Exchange
Tax (not yet levied), Slaughter Tax and Banquet Tax. These taxes are levied on specified behaviour.
Agricultural taxes. Taxes belonging to this category are Agriculture Tax (including Agricultural Specialty Tax) and Animal Husbandry Tax which are
levied on the enterprises, units and/or individuals receiving income from agriculture and animal husbandry activities.
Customs duties. Customs duties are imposed on the goods and articles imported into and exported out of the territory of the People's Republic of
China, including Excise Tax.
Let's take a look at China's Overall Tax rates, in comparison to other places shall we?
Corporate -- 25
Individual Min/Max -- 5 to 45
Payroll Tax - Combined with above
VAT/GST/Sales -- 17%
Corporate -- 0 to 39% Fed / 0 to 12% State
Individual Min/Max -- 35% Fed / 0 To 13% State
Payroll Tax -- 2.9 to 15.3% Fed / 0 to 2% states
VAT/GST/Sales --0 to 10.25%
Pretty easy to have have all that revenue generated for projects when you take that much. That's only in taxation as well, that's not including the
other fees and levy's the government has in place for the people of China to pay into.
China is only in a better position because it became a super power far later than the US did and was not mired in a host of international issues and
wars over the last 6 decades.
China's economy however is inflated and not actually as good as it seems. Much like the US economy was inflated and faked prior to the 2008 crash.
China will see a similar drop in value of Yuan along with a housing crisis that will strike them relatively soon.