As Chinese capitalists are looking to flee, the Chinese Communist Party (CCP) established the “High Net Worth Personal Administration” to conduct special tax checks on the rich using big data. As a result, wealthy people who want to leave China must obtain a Tax Refund Certificate. News commentators point out that Xi Jinping has copied what Mao Zedong used to do during his rule to promote nationalization and is a newly-born cycle of private property looting.
In an article on November 6, the Chinese financial media “Jiuyan Commune” revealed, according to a recent tax industry report, the state has set up “the high-net-worth personal management” for individuals with bank deposits of more than $1.4 million (10 million yuan) and launched a special tax investigation against them.
According to the article, the authorities will apply smart taxation methods in the future to collect information about each taxpayer and create a big data module of taxpayer portraits. They will abolish the household registration tax for immigrants.
In addition, the account “Asia Finance” on Twitter, specializing in reporting on politics and the economy, also released related news, causing heated discussion amongst netizens. Some netizens mocked that this was one of the CCP’s tricks to implement Xi Jinping’s “common wealth” plan.
Wan Runnan, the founder of the Beijing Sitong Company, was forced into exile in France for his support of the 1989 student movement. He told RFA that after the 20th National Congress of the CCP, dictator Xi Jinping promoted the so-called “commonwealth” and “nationalization.” The first movement from the CCP was to rob money from the rich, which is in line with the logic of the CCP since it came to power.
Wan Runnan said: “I have summarized the party history of the CCP. The first step is ‘killing people in the name of revolution.’ After this mass murder, the second step is ‘robbing in the name of nationalization,’ confiscating private property and adding to public funds. The third step is division in the name of revolution. Finally, ‘silent in the name of stability.’ CCP is a pack of robbers. Xi Jinping is currently ruling China and has to start a new cycle. Nationalization again isn’t just another robbery!'”
Wan pointed out that the situation also reflects that China has entered its darkest period under Xi Jinping’s rule. During the political crisis, many affluent Chinese people chose to flee with their families with their money, but if they wanted to leave, they had to leave the money behind.—the price they paid for their life.
Wan Runnan said: “Those who are transparent have run away early, now there are many rich people who want to run away but can’t, the customs stop them, the CCP has measures to control others, if you want to go, just go but leave your wealth behind. So Xi Jinping has brought China into a very dark period.”
In an interview with RFA, Wang Juntao, a political scholar living in the United States, believes that just like how Mao Zedong once built his regime that year, Xi Jinping would initiate a bloody reform for the entire society, high-income people will suffer the most, and this will cause severe damage to the Chinese economy.
Wang Juntao said Xi Jinping has climbed to the top at the 20th National Congress. We can see that Xi Jinping has once again successfully implemented the Mao Zedong-styled dictatorship and forced a group of high-income people to hand over the wealth they had earned during 30 years of reform and opening up. These successful people will overnight return to the pre-reform and opening-up era and fall victim to Xi Jinping’s new revolution.
Currently, Xi is conducting a large-scale purge and social reform, which means China will have a new bloody revolution, and these high earners are just one of them. It will have a heavy impact on the Chinese economy.
Wang Juntao pointed out that Deng Xiaoping’s reform and opening-up policy promoted economic reform while rejecting political reform. Thirty years later, when Xi Jinping returns to the old ways, the current dictatorship may offer memorable lessons for the Chinese. Without the push of democratic constitutionalism, China will return to the “Mao Zedong” era.
Wang Juntao said that Xi Jinping has made many classes of Chinese society still believe that “only opening up the economy can make China prosper.” But if there is no political reform, it will return to the Mao Zedong era.
Recent tax trends suggest that CCP inspections of high-net-worth and high-income individuals have quietly begun.
NetEase said that on September 22 of this year, the Hainan Tax Administration issued a document, the “Notice on further deepening the tax management and tax collection reform,” from the Central Committee of the CCP and the State Council Office. According to this, the government will start a new type of inspection and supervision and conduct a pilot test on “the group of people with high income and high net worth” in 2022.
In June of this year, Hou Kai, an evaluator from the China Audit Office, reported to the 35th meeting of the Standing Committee of the 13th National People’s Congress of the CCP, said that from 2018 to 2021, 544 high-income individuals in 22 provinces and cities have evaded $660 million (4.7 billion yuan) in personal income tax.
In July of this year, the Supreme Court of China issued the ‘Supreme Law on the provision of judicial services and opinions to accelerate the construction of a nationwide unified market.’ The measure increased the collection of money from high earners in the film and television sector. Earlier, Alibaba announced its support of 100 billion yuan for Xi Jinping’s “common prosperity” plan. Next, a group of Internet company leaders, including Tencent founder Ma Huateng, JD.com founder – Liu Qiangdong, and others, also expressed their loyalty, donating over $7 billion and $2 billion, respectively, to join the “Commonwealth” plan.