People's Daily: The time is ripe for massive tax cuts; China to go Reagan on taxes

The influential Communist party mouthpiece is calling for massive across the board tax cuts of 20%.
Premier Wen Jiabao in his government work report made it clear that the implementation of structural tax cuts "as one of the priorities for this year. Finance Minister Xie said recently that this year will improve the structural tax cuts continue to implement the proactive fiscal policy.

In 2002, China began to put forward the structural tax reduction strategy. Jia Kang said that the combination of macroeconomic regulation and social development in recent years in China, has taken a series of structural tax reduction measures, the merger of the two taxes such as corporate income tax, VAT, stop collecting the tax on interest, reduce the stamp duty on stock market trading, increase in personal income tax salary income "threshold" and improve the rate design, small micro-enterprise VAT and business tax "threshold" and so on, resulting in a very active role. But compared with the objective need to further promote the economic transition and social transformation, structural tax reduction is still greater efforts to spare the obvious necessity of the article.
The article goes on to state that a ¥1 trillion renminbi tax cut (about 3% of GDP, on the scale of Reagan's tax cuts) can be achieved with 20% cuts in VAT, income and business taxes.

Some more details can be found in Minister: China plans tax cuts to spur consumption
China will cut income taxes on companies and import duties on energy and raw materials as part of efforts to spur domestic consumption and reduce reliance on exports and investment, the finance minister said Tuesday.

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