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Hell Has Officially Frozen Over: China Cutting Taxes; America Raising Them

Two headlines tell the story of how rapidly America is at risk of falling from our perch as the world’s economic superpower under Biden.

First, comes this from Bloomberg:

“Beijing’s zeal for supply-side economics continues…fifth year in a row for China tax cuts. The Chinese Communist Party has embraced a school of thought more commonly associated with conservatives: supply-side economics…

Premier Li Keqiang calls tax cuts the beat way to boost growth and “fertilizer applied directly to the roots of  the economy.”

Beijing announced 2.5 trillion yuan ($393.3 billion) in tax cuts this month—the fifth year of such reductions, which cumulatively add up to more than 9.7 trillion yuan. At the current exchange rate, that’s more than the $1.5 trillion in tax cuts enacted by the Trump administration in 2017.”

This was followed a few days later with this news flash from Bloomberg:

The administration says that the tax would hit the top 0.01 percent of households, generating $360 billion over the next decade, with half of that coming from billionaires.

https://www.bloomberg.com/news/articles/2022-03-26/biden-to-propose-20-tax-aimed-at-billionaires-unrealized-gains

Admittedly, we don’t know all the details of the tax cuts proposed in Beijing and some of the measures are clearly going to be useless tax rebates, instead of statutory reductions in tax RATES to increase production. But the VAT tax rate is expected to fall for the 4th straight year.

It’s a sad day for America when we have a President whose economic strategy is to raise taxes, while our communist adversary wants to cut them. Way to put America First, Joe!

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