Xi’s Toughest ‘Common Prosperity’ Test is Raising China’s Taxes

The video discusses China's ongoing struggle to address its wealth gap through tax reforms. Despite the government's ability to act swiftly in other areas, implementing taxes like property and inheritance taxes has been challenging due to public opposition and economic concerns. Recently, China announced property tax pilot programs as a compromise, reflecting the complexity of balancing revenue needs and property market stability.

What types of taxes have been discussed to help reduce China's wealth gap?

• Value-added tax and import tax

• Corporate tax and luxury tax

• Property tax and inheritance tax

• Income tax and sales tax

Why is it surprising that China has not implemented certain taxes despite its quick policymaking ability?

• Because taxes are easy to implement

• Because China can act quickly in other areas

• Because China has no political opposition

• Because taxes are very popular in China

What is a major reason for the difficulty in implementing taxes in China?

• Lack of government interest

• Public support is not needed

• Taxes are unpopular

• There is strong political opposition

What recent step has China taken regarding property taxes?

• Implemented a national property tax

• Eliminated property taxes

• Announced a series of property tax pilot programs

• Reduced property taxes nationwide

Why is there opposition to a national property tax in China?

• It would increase land sales

• It would decrease government revenue from land sales

• It would make property values rise

• It would have no impact on real estate