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The US Is Shearing Our Sheep Wool

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The US Is Shearing Our Sheep Wool

How the New Tax-Cut Bill in the US Is Going to Affect China

Sina News,

5 min read
5 take-aways
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China isn’t too happy about the new US tax-reform legislation. Here’s why.

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Recommendation

Americans aren’t the only ones wondering about the impact of the Trump administrations’s Tax and Jobs Act of 2017. China, too, has strong feelings about these tax cuts. In this Sina News opinion piece, financial expert Xu Quansheng addresses the nation’s anxiety over the possible negative effects of the US tax bill on China,  points to the shortcomings of China’s own tax system, and suggests a Chinese plan of action in response to the US tax reforms. getAbstract recommends this article to American readers wondering why the rest of the world keeps an eye on everything that happens in the United States.

Summary

Some experts predict that America’s 2017 tax reform will cut the US government’s revenue by $1.4 trillion over a ten-year period. Compared with the United States’ relatively calm response to this predicted loss, China has already worked itself into a frenzy. State-owned news outlet People’s Daily criticized the US tax bill as a trick to woo the masses and ingratiate corporations, while instigating an international tax war that puts its allies in jeopardy. Officials from China’s State Administration of Taxation openly wondered whether the US government will even have enough money to spend after the tax cuts. Such angry rants indicate that China is unprepared for the global effects of America’s new tax policy. Rather than being “giants in language and dwarves in action,” China needs to calm down, design countermeasures and decide on a course of action for the future.

The tax cuts are a part of US strategy to fleece other countries. America will attract capital investments away from countries that have higher corporate tax rates. US president Donald Trump wants to relive the glory of the...

About the Author

Xu Quansheng is a senior financial columnist at Sina News. He is a financial expert who has spent many years working for first-tier financial institutes.

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