The Chinese Communist Party propaganda department recently announced the annual GDP for 2020 across the mainland, and the report card shows that five more cities in the mainland have exceeded the trillion RMB mark in GDP in 2020. It seems that China’s economy is soaring through the Epidemic, and its economic performance is brave enough to win the global championship, and data can be faked, but people’s feelings cannot be faked.
Mr. A in Beijing revealed to the reporter that in 2020 he had taken out two sums of money from his company account for working capital, the total amount did not exceed 60,000 RMB. 2021 after the tax return was completed, Mr. A received a fine from the Beijing tax department, the total amount was nearly 200,000 RMB, Mr. A and the accountant repeatedly checked to find out that the two sums of money withdrawn had forgotten to pay tax. Mr. A’s company in Beijing is small-scale, operating Mr. A said that he needed to pay the tax on the money he withdrew, and the tax amount was exactly 30,000 yuan, and according to the regulations of Beijing tax department, if the tax amount exceeds 30,000 yuan, it is a malicious tax evasion and will be heavily fined by the tax department. This inadvertent mistake made Mr. A lose a lot of money, and half year’s profit was paid for the fine.
Mr. A said, because of the epidemic company operations are seriously affected, the government not only did not relief for small and micro enterprises, but also intensify the tax audit is just to collect more fines, like Mr. A small companies operating accounting are outsourcing mistakes are inevitable, but the tax department does not listen to your explanation, they are through the fine to generate revenue.
Mr. A also introduced his friends in response to the national call to open a company in the Horgos Free Trade Zone, the policy provides for the establishment of companies in Horgos to enjoy 5 years of tax-free support. However, this year, out of the tax department under the guise of investigating tax crimes, the legal person who opened a company in Khorgos was required to pay back taxes, and the back tax period was inverted forward by 4 years, which means that what should be exempted was not exempted, and many companies paid taxes on their profits for a year.
In addition, Mr. A also lamented that mainland business is difficult, he gave an example, if a small-scale legal person’s company annual profit of 1 million yuan, the first need to pay 25% of the enterprise business tax, the company needs to raise the money needs to pay another 20% of personal income tax, the company account must also leave a deposit, the final hand of money is not as much as a white-collar workers in Beijing, but the risk borne by the company legal person to far higher than the average wage earner. Business is difficult, Life is not easy is the biggest feeling of Mr. A in 2020.
In December 2020, an article titled “Young People Stuck in the Flower” hit the Internet, pointing out that nearly half of the people using consumer loans in China are post-90s, ranking first among their peers in Asia. The young person in the article, Qi Qi, used Alipay’s “Flower Chant” and after four years, one loan added up to nearly 300,000 yuan, while her monthly salary was only about 6,000 yuan. The young man in the article, Q Q Q, is just one of the many members of the chanting army. Among the post-90s crowd, it is gradually becoming common to pay back the chanting loans the first Time you receive your salary.
At the end of 2019, Nielsen came out with what it said was the first “Report on the Debt Status of Chinese Consumer Youth”. The report said that the overall penetration rate of credit products among young people in China has reached 86.6%, and 44.5% of young people have debts. The debt-ridden young people ridiculed themselves as the “debtors’ union”, which also nakedly unveiled the cruel side behind this crazy consumer society.
According to the data released by the Central Bank of China, by the end of 2020, the total deposits of mainland residents reached 93.44 trillion yuan, with a per capita savings of 66,740 yuan, many people feel that they have not reached the average of 66,700 yuan, dragging the country behind, in fact, there are 560 million people on the mainland with zero savings. China has long been a “savings country”, but with massive central and local debt, China has gone from being a “savings country” to a “debt country”.
We can’t help but ask what makes life so difficult for everyone. People’s wallets have been emptied by “whoever”.
China’s land concession revenue from 2011-2020 (in billions of yuan) (Image source: See China)
Combined with the newly released GDP data for comparison, in 2020, China’s land revenue will exceed the 8 trillion yuan mark for the first time, reaching 8,414.2 billion yuan. The mainland’s local general public budget revenue at the local level is 10,014.4 billion yuan, which means 84% of the fiscal revenue comes from land sales. In fact, more than 33 cities on the mainland earned more than 50 billion yuan from land sales, setting a new record. 50 major cities earned a total of more than 420.58 billion yuan from land sales, up 18 percent year-on-year. Of course, this is one of the fundamental reasons why the mainland economy is riding high. Such a crazy land finance strategy is bound to affect the direction of housing prices, and people expect the Communist Party to lower housing prices even more distantly. The Communist Party has emptied the wallets of young people through its land hegemony, and they are still not satisfied with one, they want to empty “six wallets”.
In 2015, the Communist Party implemented a “comprehensive two-child” policy, and the downward trend in China’s newborn birth rate has not improved, but rather worsened. 2020 births in some cities will be significantly lower than in 2019. Experts predict that China’s total fertility rate will be less than 1.5 in 2020, which is defined by international academics as a “low fertility rate” at 2.1, a “very low fertility rate” at 1.5, and a “very low fertility rate” at 1.3. “Very low fertility rate”. Obviously, China still has not been able to jump the “low fertility trap”, and the actual situation in China is, to put it bluntly, “getting old before getting rich”.
According to normal national paradigms, such problems require the government to increase welfare, lower taxes and increase employment opportunities in order to release dividends to improve the socio-economic structure, but the CCP will never hide wealth from the people. The Communist Party has failed to overcome the “middle-income trap” and “growing old before getting rich”, which are problems of national Destiny and people’s well-being, under the Communist Party’s proxy.
This is why businessmen lament that business is difficult and people’s livelihood is difficult; young people have no money in their hands and dare not have children and cannot afford to feed them; but the government relies on resource monopoly to suppress the people indefinitely, dare to ask when the suffering will end?
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