On Land Reform; Part 2

Day 792, 23:35 • Published in China China • by Zhou San

Posted on and taken from: eChina's Forums


It seems I was misunderstood so I will explain here.

1) I WANT this law to fail! So please vote NO if you haven't voted (although it looks like it will fail anyways).

2) I don't support 1%/1% for iron. Many people misunderstood my point and are accusing me of trying to ruin the economy or whatnot.

3) This was done to spark debate, so let's make it official and start a debate here.




Based on information gathered from my article, people support a higher iron tax (relative to grain/oil) because it is profitable. Of course I also support a sustained tax revenue for eChina's treasury. But I think we are currently not doing this efficiently.

a) Do we support a full closure of our market (ie. 99% import tax)?

b) If not, do we support a full opening (1😵?

c) If not again, what do we support?

It was mentioned that grain is an unprofitable industry and that oil is not much better. Does this mean we should abandon them? I contend that when we lowered the taxes to 1/1% a couple months ago, we killed these industries. Are they not unprofitable because of the 1% import tax? Is a 1% income tax not needed because of the import tax? Even a slight increase to the import taxes should better protect our domestic companies and increase their profits, thereby increasing our revenues. How can domestic grain/oil earn profits when they have to compete with foreign grain/oil?

It was also mentioned that if we lower the iron tax, what was the point of wanting back Liaoning? While that person misunderstood my comments, he brought up a good point. If we keep grain and oil at 1%/1%, what is the point of keeping Beijing? Even if iron will always be more profitable, why not increase our grain and oil tax base? Do we not like money in our treasury?

We are wasting our nation's advantage! Many eCountries have NO HIGH regions. We have 3! We should be using this to increase our wealth, not acting like they don't exist (or that only 1 exists). This is not about iron, this is about our entire land industry. If you think grain is useless and only fools open grain companies, who cares; let's protect the guy a little and earn some extra taxes.

So I suggest a higher import tax on all 3 industries. I DO NOT support 1%.
- at 1% we are wide open to the point that our HIGH regions do not matter and domestic companies can not compete.
- at 99% we are isolated and can become an exporting superpower. But we will have ZERO (0) imports and no import tax.
- somewhere in between but probably less than 30%, we protect our workers and managers, and still get import taxes from efficient foreign companies.

I don't know exactly what to suggest (except that it should be lower than 30😵 but that's what we can do now: debate it. 😛

I have no real suggestion for income tax rates, except that if we raise the import tax, we could probably also increase the income tax.

Original Article

Thanks again,
Zhou San （周三）