Posted on 12/28/2015 8:46:58 AM PST by Lorianne
China is demonstrating that it is more practical than anyone else in the industrialized world. They have announced that they will “reasonably†set limits on new local government debt in 2016. Finance Minister Lou Jiwei said at a work conference in Beijing on Monday that they will actually limit local debt; something nobody else does. China will also adopt a much more flexible fiscal policy that will include gradually increasing the fiscal deficit ratio and expanding its budget deficit. So China will increase its debt in a gradual manner to try to stimulate the economic decline it is facing.
These policies are to be supplemented by a cut in taxes to help companies reduce their burdens and to prevent rising unemployment. While the Republicans effectively forced tax reduction in the year-end budget, there is little doubt that the Democrats alone would never adopt such a measure. The idea of cutting taxes in Europe is up there with treason.
We can see that China is taking a far more practical approach in trying to manage its economy than we see in the West. Perhaps when they too come to realize that debt is not the answer, and instead compete with the money that would otherwise expand the economy, then the day will come when public debt is forbidden.
(Excerpt) Read more at armstrongeconomics.com ...
I’m shocked that they don’t follow the progressives and tax their way into prosperity!
This enrages me. If true, the communists are more fiscally conservative than the US Government.
It is sad when the communists are more to the right than the Republican Party.
Anything that builds communism, they are open to. If their fellow travelers in DC had not instituted the world’s highest corporate tax rate for the purpose of tearing the USA down, they would set their taxes even lower.
No, they are not more to the right. One could not even call Lenin’s “New Economic Policy” more to the right, even.
Wonderful! The Chicoms are reducing taxes while the NDP in Alberta are raising Provincial income tax rates and the Liberals are raising Federal income tax rates during an economic slowdown/crash.
Amazing when the commies are less socialist than the parties in a ‘free market’ or ‘mixed economy’ country. I just WOW!
I guess ‘free market’ and ‘communist’ economies ARE really nothing but a continuum, NOT different ends of an economic spectrum.
So now the greedy Chinese one percent won’t be paying their “fair share / a little more” to help “those in need.”
Why would this be surprising? Red China’s fellow travelers will always tear down the remaining “bourgeois” countries before remaking them in Marx’s image.
Novel
Ndp are a big reason I’m looking at options for relocating.
You have to balance the high corporate tax rate with the fact the USA has almost nil tariff income and no VAT. But lowering taxes is always a good thing.
I am always surprised at all the ChiCom sympathizers on Free Republic since they have one of the most protectionist economies in the world.
A point of irony is that the federal government, prior to the Sixteenth Amendment, had the vast bulk of its revenue coming from tariffs.
Notwithstanding, the corporate tax rate is out of balance already, along with the micromanaging level of regulations.
That just makes me crazy. One almost can imagine them shaking with laughter thinking of that specific effect it has on people like us.
If Obastige thought it would irritate us that way, he would do it for pleasure alone.
Yep. That is the one of the hurdles we will have to get over to grow industry and jobs, lowering the corporate tax rate and make it attractive and possible to earn money running a business.
That and reducing the legislative burden.
But neither of those things is going to come to pass, I fear. There are more people voting to get stuff than who make stuff.
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