China: increase in tax income

Kai comments on the recently release data about the 22% increase of tax income in China in 2006. The increase is 12% higher than GDP. There are three possible scenarios: 1. the revenue department managed to collect tax from unpaid sectors; 2. most of the economic growth fell into the hand of the rich, and they were subject to higher tax; 3. there was a structural adjustment of the country’s economy (zh).

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