2013-09-04

Unintended Consequences

One of the big sources of opposition to ending/relaxing the one-child policy are provincial governments who use the fines as a source of revenue.

Follow the Money: Who Benefits from China’s One-Child Policy?
By August 31, 17 provinces had responded with information on the amount of money collected in social support fees in 2012, yet none explained how the money was spent. The fees levied in the 17 provinces totaled 16.5 billion RMB (about $2.7 billion USD). Jiangxi Province topped the list with 3.39 billion RMB (about $550 million USD), which was 1.65% of total fiscal revenues of the governments of all levels in the province. The figures, though still unreliable, confirmed that the revenues generated from this fee play a more-than-trivial role in the fiscal workings of local governments.

Just as it is with smoking in the United States. Any industry which wishes to be legalized or avoid persecution (such as marijuana), should allow itself to become a source of government revenue.

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