From the Readers

Rich should pay their dues

(China Daily)
Updated: 2010-04-12 08:34

Mao Yushi may be one of China's most famous economists but he has missed the point this time. A progressive tax rate is a sound and fair system, and workable providing acceptable levels of taxes are set. He concedes that there are big loopholes to be plugged. So why is the government not taking appropriate action? The 7 percent tax revenue collected is totally unacceptable by any standard. Even worse, it gives an impression that most Chinese are dishonest. You cannot just simply lower the tax rate and hope the rich will come clean and pay more taxes. Remember human nature is intrinsically selfish and greedy.

Furthermore, to apply a uniform tax rate across the board will further reduce the spending power of the poor and the middle-income group and in turn slow down the economy. It does not make society more harmonious by pinching coins from the beggar's bowl and let the rich and powerful get away with murder. I don't think Mao Yushi is not quite "speaking for the rich and working for the poor".

Whisky Charle on China Daily website

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(China Daily 04/12/2010 page10)