Where are you getting a 90% tax rate? Their corporate tax rate is 25%
It might have originally come from the following table indicating that total taxes collected are 90% of Chinese GDP. Wikipedia- China tax structure
Doesn't really matter if I'm wrong. A product made with $17/hr labor with 0 taxes is still not competitive with a product made with $0.17/hr labor and 25% taxes.
You can cut out all U.S. taxes and regulations and will still be losing industries to China. Until either our wages are equal to Chinese or we protect our market.
Revenue breakdown in 1997
Revenue breakdown by Type of Taxes in 1997:
| Type of Tax | Revenue (in billion yuan) | Proportion to Total Revenue (%) | Proportion to GDP (%) |
|---|---|---|---|
| VAT | 348.13 | 42.3 | 46.4 |
| Consumption Tax | 71.11 | 8.6 | 9.6 |
| Business Tax | 135.34 | 16.4 | 18.1 |
| Enterprise Income Tax | 93.17 | 11.3 | 12.5 |
| Income Tax on Enterprises with Foreign investment and Foreign Enterprises | 14.31 | 1.7 | 1.9 |
| Individual Income Tax | 25.99 | 3.2 | 3.5 |
| Resource Tax | 5.66 | 0.7 | 0.8 |
| City and Township Land Use Tax | 4.40 | 0.5 | 0.6 |
| City maintenance and Construction Tax | 27.23 | 3.3 | 3.6 |
| Farmland Occupation Tax | 3.39 | 0.4 | 0.5 |
| Fixed Assets investment Orientation Regulation Tax | 7.83 | 1.0 | 1.0 |
| House Property Tax and Urban Real Estate Tax | 12.39 | 1.5 | 1.7 |
| Vehicle and Vessel Usage Tax and Vehicle and Vessel Usage Plate Tax | 1.72 | 0.2 | 0.2 |
| Stamp Tax | 26.63 | 3.2 | 3.6 |
| Deed Tax | 3.60 | 0.4 | 0.5 |
| Slaughter Tax | 2.39 | 0.3 | 0.3 |
| Agriculture Tax and Animal Husbandry Tax | 34.75 | 4.2 | 4.6 |
| Customs Duties | 31.95 | 3.9 | 4.3 |
| Total | 823.40 | 100.0 | 110.1 |