[FoRK] choose your tax plan

HK Pang hkpang at gmail.com
Sat Oct 18 21:31:58 PDT 2008


'Spreading the wealth' in China means very differently than in the US.

The so called Gini-Coefficient in China is at a level that's
considered dangerous. So the Chinese government has no choice but to
help out the farmers. China is really a society of haves vs have nots.

But in the US, the difference between well off and poor is more like
driving a Lexus vs a Camry. Now Obama wants to 'spread the wealth' to
make sure the people driving a Corolla can afford a Camry at the
expense of Mercedes owners.

On Sat, Oct 18, 2008 at 8:03 PM, Joe Barrera <j3 at barrera.org> wrote:
> On Sat, Oct 18, 2008 at 2:05 PM, HK Pang <hkpang at gmail.com> wrote:
>> socialism doesn't work..even the chinese learned to get rid of it.
>
> The Chinese are pragmatists who will do whatever it takes to keep social order.
>
> In fact, it looks like they are looking explicitly at "spreading the wealth" to
> rural areas, to boost domestic demand to make up for expected reduction
> in foreign demands.
>
> (P.S. Note the "additional reporting" credit... same Chris Buckley?)
>
> http://www.reuters.com/article/idUSTRE49B1X320081012?sp=true
>
> BEIJING (Reuters) - China's Communist Party vowed on Sunday to double
> the income of the country's hundreds of millions of farmers by 2020
> and boost their spending, as it looks to home markets as a bulwark
> against the global financial crisis.
>
> The country's leaders gathered for a four-day conclave focused on the
> farmers who pioneered China's economic reforms 30 years ago but have
> since been left behind by booming cities.
>
> China hopes that boosting rural growth will help counter wilting
> export demand as the global financial crisis forces foreign consumers
> to tighten their belts.
>
> Rural discontent about expensive education, shoddy health care and
> corrupt local government is also fuelling unrest that has Beijing's
> stability-obsessed cadres worried.
>
> "We must give a new impetus to rural development, in order to give a
> new, increased vitality to the entire economy and society," the
> official Xinhua agency said in a report on the meeting, strictly
> closed to foreign media.
>
> The report gave no details on the new rural regulations agreed at the
> conclave, but state media have flagged that they will include land
> reforms and rural spending initiatives.
>
> State media are already acclaiming the farm changes as a breakthrough
> parallel to reforms pioneered under Deng Xiaoping almost 30 years ago,
> when the huge communes that were the jewels of Mao Zedong's communism
> began to crumble.
>
> Farmers are hopeful but wary.
>
> Yu Bin, a villager in Anhui province who has protested against the
> confiscation of local farmland for development, welcomed the promises
> but said enforcing well-intentioned announcements was not always easy.
>
> "Policy enforcement is always a problem at the grassroots," Yu told
> Reuters by telephone.
>
> "The key is to give farmers more protection of what rights they are
> promised. Only if we can get that will farmers' lives improve. I hope
> this will be the start of some real improvement."
>
> FOOD SECURITY
>
> Since 1978, farmers' incomes have soared from 134 yuan per year on
> average to 4140 yuan ($605.8). The number of people living in poverty
> has shrunk from 250 million to just 15 million.
>
> But urban residents' incomes are much higher and until this year were
> rising faster than farmers', an imbalance Beijing is now keen to
> address.
>
> The leaders plan to entirely eliminate absolute poverty and also
> ensure China can feed its vast and growing population, said the
> official summary of the meeting.
>
> State media also suggested the world financial crisis might give extra
> impetus to efforts to boost domestic development.
>
> "The global credit crisis freezing up the world's finances may be a
> blessing in disguise for China as it aims to modify its economic
> structure," Xinhua said in a commentary on Sunday.
>
> "The government turned to the vast rural market, which has 55 percent
> of the nation's consumers," the report added, before mentioning the
> leadership meeting and the reforms it passed.
>
> (Additional reporting by Chris Buckley)
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