According to the latest news from China’s Shenzhen tax authority, the tax audit will focus on individuals with high incomes and high net worth. Some senior media analysts pointed out that the CCP’s 20th National Congress has established a “battle team” ready to fight anytime. As China’s economic crisis and the CCP’s financial crisis are coming simultaneously, they need to raise more funds to fight the war. Therefore, individuals with high incomes and significant net worth are targeted as versatile cash machines in wartime.
Individuals with high incomes and large net worth face tax audits
On the Shenzhen Municipal Tax Department website under the CCP’s State Tax Administration Bureau, on November 7, an invitation to bid for an audit package was issued on the audit of the taxpayer’s business income statement, with a focus on high-income and high-net-worth people. The bid amount is about $280 million (2 billion yuan).
Radio Free Asia (RFA) reported on November 10 that the mass media account NetEase published an article titled “Information Explosion,” saying that the State targeted individuals with significant net assets (those with bank deposits of about $1.4 million (10 million yuan), It set up a special management department in charge of this group of people. It launched a particular screening campaign for them. In the future, China’s Golden Tax System Phase IV will apply intelligent tax calculation methods to collect information about each taxpayer to build an extensive data system, simultaneously abolishing civil status tax for immigrants. People who want to leave China must go to the tax office to issue a tax payment certificate.
The article revealed that in August of this year, Fangxin Technology cooperated with other industry partners to win the bid for the comprehensive e-invoice service delivery platform project (phase 2) of Golden Tax System Phase IV, on the other hand, the management software of small businesses, medium-sized enterprises and groups of enterprises nationwide will be inspected by the CCP. Earlier, it was revealed that the nationwide inspection of the group of high-income and high-net-worth people had begun.
According to Bloomberg calculations based on data released by the Ministry of Finance on October 26, the fiscal deficits at all levels within the CCP amounted to about $1 trillion, a record for the same period and nearly triple the 360 billion from January to September last year, China’s financial revenue from January to September fell by 6.6%; and tax revenue decreased by 11.6%.
Cai Shenkun, a scholar in the field of financial economics, believed that currently, agencies in the CCP have increased their spending, but their financial income has decreased a lot. Therefore, in addition to tax audits for individuals with high incomes and significant net worth, the government will also increase property taxes. “Real estate tax has been cherished for a long time, especially in class 1 cities. These tasks will be fully implemented after two sessions next year,” he said.
Yang Jiaqing, an economic and financial commentator, said that the purpose of the new tax reform plan is to solve the problem of not being able to conduct tax audits for high-income groups and make up for the tax revenue shortfall.
Another Chinese political and economic analyst pointed out to Sound of Hope that Xi Jinping sees the realization of “common prosperity” as one of his policy goals, which has been cherished for several years. At the 20th National Congress, he proposed “common prosperity” as part of “Chinese-style modernization.” For Xi Jinping, common prosperity is “an important goal,” “a top long-term task,” and a “practical task.” By current indications, this goal seems to have begun to enter a concrete implementation phase at a critical time when the economic crisis and the financial crisis hit at the same time. Beijing seems unable to wait any longer.
Is Xi Jinping preparing for war?
According to Xinhua News Agency, the CCP’s official media agency, Xi Jinping, visited the Joint Operations Command Center of the CCP Central Military Commission on November 8.
Xi Jinping said that the entire army needs to focus all its energies on war, make every effort to fight, improve combat capacity, and fulfill its mission and tasks in the new era.
Commentators analyzed that Xi Jinping has indicated that he is preparing for war.
Wan Runnan, the founder of Stone Group, the most famous private enterprise during China’s reform and opening up, went into exile after the June 4 events and now lives in France. Runnan said in an exclusive interview with RFI on November 5 that Xi Jinping had brought China into its darkest moment.
Why did he say that? The situation facing the Chinese economy is that many foreign companies will withdraw and break away from contact with China. Even if China’s economy doesn’t split in half, it will experience a severe recession. Moreover, China’s provinces and cities have serious financial deficits, and so has the central budget. Together with a political line, the “zero-COVID” pandemic prevention and control policy strictly control society and people. This is the so-called going to the darkest moment.
Runnan explained that Xi is bringing China to its darkest moment because he wants to prepare for war. In Xi Jinping’s and his allies’ eyes, the economy is not a big deal. So let’s talk about the wartime economy after the war. As long as you have a bowl of rice, the tragedy of millions of people starving to death will be avoided.
Wan Yunnan pointed out that some specific measures show that Xi is moving in this direction. Why does he want to revive the marketing and supply cooperatives? Why is it that while other industries are downsizing, the supply and marketing cooperatives and the tax department recruit massively? Because it’s to prepare for war.
Xie Tian, a professor at the Aiken School of Business at the University of South Carolina, USA, also believes that the CCP is preparing for war. Once attacking Taiwan, it will trigger comprehensive sanctions from Western countries. At that time, forms such as large canteens and supply and marketing cooperatives could control the supply of social supplies and food. For the CCP, this is the best way.
Where does the money come from?
Tang Hao, a senior communicator, said on the November 4 “Crossroads of the World” program that the new “team” created by Xi Jinping at the 20th National Congress is a “battle team.; they will continue the political line of struggle and prepare to start a real war. So why does Xi Jinping not carry out reform and opening up? Because he wants to achieve common prosperity, he wants war.
In Tang Hao’s view, the CCP’s local authorities are in financial difficulty, and the CCP cannot help them all. Moreover, the CCP Central Committee is currently preparing to attack Taiwan, war requires more money, so it gives the idea of businesses, using the phrases “common prosperity” and “increasing supervision” to turn businesses (high-income and wealthy individuals) into ATMs, which would be a flexible way to earn money.
In particular, Xi Jinping said in his report to the 20th National Congress that it is necessary to “standardize the order of income distribution and the mechanism of wealth accumulation” and “regulate excessively high income and prohibit illegal income.” Behind these claims is that in the future, in China, the size of a business and how much money a company can earn will not be determined by the competitiveness of the market and the company, but will be controlled and distributed by the CCP. This is certainly not good news for businesses.
In addition, once a real war breaks out, the United States and the international community can intervene in the Taiwan Strait and launch joint sanctions to lock down the Chinese economy. Therefore, the CCP wants to preserve domestic economic activities at least to maintain self-reliance. This is why Xi Jinping always refers to the “international and domestic double cycle” and “domestic cycle.” Therefore, Xi wants to focus on the “domestic cycle” to maintain the most basic existence in the country and circulate supplies and wealth while being as self-sufficient as possible.
This is also the reason why Xi Jinping recently completely restarted “supply and marketing cooperatives” across the country. For example, suppose there is a real war. In that case, he will rely on the marketing cooperatives and CCP supply to keep the transportation and distribution of the most basic materials going in the country.