Recently, a video titled “Everything is under control and cannot escape the devil’s claws” has attracted attention on Chinese social media, where comments are closely monitored. In the video, a man shows how the CCP has gradually found the wealth of the rich at home and abroad over the past two decades, and introduced wealth and inheritance taxes to access these funds.
Like in many communist countries people must carry an ID card. In March 2004, the second generation ID card was released in China. Authorities clearly know who you are. Then in May 2007, bank accounts were connected online, all your assets were discoverable.
And in July 2012, the marriage registration of the Ministry of Civil Affairs was put online, which helped authorities understand the connection between people. In February 2014, business registration also went online. Companies, corporations, and shares in your name were all searchable.
Authorities launched a unified real estate registration at the end of 2017, so they could find all residential properties in your name. Then, in February 2018, when you joined the Common Reporting Standard (CRS), all your assets abroad were at their fingertips.
It has taken the CCP almost 20 years, step by step to understand who you are, who your family is how much money you have, how much property you own, the shares you have, and how much in the way of offshore assets you have are all linked together. Authorities can clearly see how much money you have earned in your lifetime and whether you have paid the corresponding taxes.
The end of the video emphasized that these assets become inheritance after your death, so your estate will levied an additional 40% inheritance tax. If the inheritance is 100 million yuan, your descendants first need to pay 40 million yuan in cash, or else they cannot inherit the property.
Especially the property tax, in the video the financial adviser warns that the property tax will continue to exploit people,. He said, “If house prices don’t rise, rent can’t be collected, moreover houses can’t be sold or converted to cash, you will suffer heavy losses.”
Taking a house in Beijing as an example, the advisor said, “A $10 million house with 100 square meters (about 1,000 square feet), assuming property tax is charged at 5% of market value, for a $10 million house you would owe $500,000 in taxes, which is more than the $40,000 a month rent, which is clearly unrealistic.”
According to public information in mainland China, property tax is levied on property owners based on the taxable residual value of the house or the rental income.
Last year, the CCP’s media published Xi Jinping’s article “Promoting Common Prosperity,” suggesting that China should stop polarization, “we need to actively and steadily promote reform and laws for real estate tax, and do a good job piloting.”
In 2011, the CCP started the first property tax pilot in Shanghai and Chongqing. Shanghai targets residents with multiple homes, and Chongqing targets high-end luxury homes.
The CCP controls everyone, the richest to the poorest
Li Yuanhua, a commentator on current affairs and a former associate professor at Beijing Normal University, told The Epoch Times that the CCP’s policy is to control everyone—the rich and the poor.
He said that in the early days, the rich benefited through the connection between the Party and businesses. In the Chinese environment, it is impossible to really comply with the law, any businessman who obeys the law will not be able to make money.
Li said, “Even if you really obey the law, they can accuse you and punish you. So it must control everything.
“For example, the richest man will go to jail if they want him to go to jail. The richest people list is the same as the slaughtered pigs list. When it (the CCP) wants money, it asks you to hand over the money in the name of the government. Therefore, many rich people have to find ways to move their children, relatives, and assets abroad, they have no sense of security.”
According to Li, the CCP not only controls the assets and capital of the rich, but also controls the daily lives of the poor and in fact all people. Their thoughts and right to freedom of expression are restricted, making people live in fear. “All your information including health codes are all connected online, which means everything you have is under its control.”
He believed that Xi has always been worried about private enterprise, “because these people became rich before he came to power, and some even participated in Jiang Zemin’s coup. Thus, he is not reassured about these people.”
As early as September 2020, the CCP issued the “Opinion on Strengthening the Private Economic United Front Work in the New Era.” It is the first private economic united front document issued by the CCP since 1978. Commentators said that the CCP will be more confident in the future “harvesting private enterprise assets,” and that it is more likely that the authorities have come to comprehensively harvest the assets of private enterprises.
Caijinglengyan economists said that in recent years, as private enterprises continue to face difficulties and assets are confiscated, state-owned enterprises have bought all their shares. All this confirms the view that the CCP will pursue a planned economy and expropriate private enterprises.