Recently, a video has been attracting widespread attention on China’s mainland social media titled “Everything is under control and cannot escape the devil’s claws.” The video shows how, over the past 20 years, Beijing has slowly figured out the wealth of the rich at home and abroad and used the property and inheritance tax to squeeze more money from its citizens.
The video explains that;
Without anyone knowing, the CCP has spent nearly 20 years learning step by step about you. Who you are, who is in your family. How much money you have, how much equity you have in your assets, and how much real estate you own. How many overseas assets do you have all linked together? So, the government can quickly see how much money you’ve made in your life and if you’ve paid the proper taxes on it.
They did this in a very systematic way.
In 2004, Beijing issued the second-generation ID card to clarify who you are.
Then in May 2007, the bank accounts were connected to the internet. And the assets of all banks were combined so that they could all be identified.
In 2012, China connected its marriage registration system to the internet. As such, they can now understand more about the relationship between people.
In 2014, China connected the registration of industrial and commercial enterprises to the internet. Afterward, they can identify companies, enterprises, and shares under your name.
At the end of 2017, Beijing launched the unified registration of real estate. Then, they can know all the real estate listed under your name.
In 2018, Common Reporting Standard (CRS) was introduced. China is one of the signatories which will let Beijing know what assets you have overseas.
At the end of the video, it said that these assets would become your inheritance after you die. And the government will charge a 40% inheritance tax on them. If you get a $100 million inheritance, you must first pay $40 million in cash. If you can’t pay it, you can’t get the inheritance.
The video also strongly warns about property tax. Because if the house price doesn’t go up, the rent can not be paid back. And it cannot be sold or cashed out.
Take a house in Beijing as an example. A house that costs 10 million yuan or $1.4 million is about 100 square meters. If the property tax is 5% of the market value, the owner of a house worth 10 million yuan or $1.4 million will have to pay 500,000 yuan or almost $72,000 in property tax. This is more than 40,000 yuan or $5,700 per month. It’s not likely that rents will be enough to cover it.
The richest list is the same as the slaughtering pig list
Li Yuanhua is a commentator on current events and a former associate professor at Beijing Normal University. He told Chinese language media Da Ji Yuan 大纪元 that the CCP’s policy is to control everyone, both the rich and the poor. He said:
“The richest man will go to jail if he wants you to go to jail. The richest man list is the same as the slaughtering pig list. When he wants money, he asks you to hand over the money in the name of the country. That’s why so many rich people want to bring their children, relatives, and his own assets overseas, because they have no sense of security.”
In 2020, Beijing published an opinion piece titled “Opinions on Strengthening the United Front Work of the Private Economy in the New Era.” This was the first ever united front document for the private economy that the CCP put out since 1978. The piece says that the government will “harvest the assets of private business in the future.”
Economist Financial Cold Eyes has said that there are a series of recent events. These include the reform of state-owned enterprises, the continuous accidents of private entrepreneurs, the confiscation of assets, and the large-scale purchase of stocks of listed private companies in trouble by state-owned enterprises. These confirm his view that Beijing will pursue a planned economy and strip assets from private businesses.