Rich Chinese Communists Channel U.S. Tea Party in Tax Debate

Bloomberg
March 17, 2010

Zong Qinghou, China’s richest man, says a property tax will hurt homeowners. Wang Jianlin, the 16th wealthiest, agrees. Lu Guanqiu, No. 19, says China isn’t ready for such a levy.

Their financial clout, a combined $12.4 billion according to Forbes magazine’s latest ranking, packs a political punch. They are members of the Communist Party and delegates to China’s parliament or its political advisory committee. Their concerns about the tax, which the government might adopt in the five-year plan beginning 2011, are shared by many Chinese investors and homeowners.

“A property tax isn’t appropriate,” Zong, 64, chairman of beverage company Hangzhou Wahaha Group Co., said in an interview. “Now everyone already pays monthly management fees, so it would just add another burden.”

Call it a nascent Chinese Tea-Party movement, after the self-described U.S. activists who protest the spending and taxation policies of President Barack Obama and Democrats who control Congress. The groups take their name from a 1773 Boston protest by supporters of independence from Great Britain.

An annual levy on property would give local officials a reliable stream of revenue, making them less dependent on land auctions that have fueled speculation and helped prices rise 10.7 percent in February from a year ago, the fastest pace in almost two years.

Full article here

Comment Rules

Comments are closed.