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Thread: Reduce personal tax for these rich people?

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[quote=MARRIE,274257]·	There has been ongoing illegal activities which involve a large scale diversion of state assets into private hands.  One estimate puts it at a rate of 100 million yuan a day or 36.5 billion a year.  A significant portion of this amount is used in personal investment which is often unproductive and mismanaged creating a loss.  This is not only adding problems to a lumbering public sector but also widening the income disparity by benefitting only a small minority. 
·	A portion of the corporate income is being disguised as personal savings to avoid official supervision and to capture higher interest.  Chinese banks have paid a higher interests on personal bank deposits and bonds which is thought to have also contributed to a such phenomena.7  The growth in savings has far outstripped GDP growth between 1991 and 1994.  According to one estimate, the financial and equity assets of Chinese citizens have increased 70 and 100 times respectively during this period.  For instance, in 1994, the total increase in urban wages was 170 billion yuan- only a third of the growth in urban personal financial assets.  However, the total financial assets of Chinese citizens increased to 580 billion yuan that year which is 470 billion more than their net income.  Even if we ignore the living expenses this amount defies the common explanation in terms of wage income growth. 
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