Seminar on “Corporate Tax System in the USA and China: Problems and Reform” Held in Beijing
Author:Unirule
Time：2016-03-07 14:15:21 Clicks:
February 21st, a seminar on “Corporate Tax System in the USA and China: Problems and Reform” was held at Unirule Beijing Office. This seminar brought in significant study results and international experience for the ongoing research project on “The Survival and Development of China’s Private Enterprises and the Tax System”. Unirule was proud to have Mr. Daniel J. Michell, Senior Fellow from CATO Institute(US) to speak on this seminar.
Mr. Michell has been a fervent researcher on corporate tax. He was the co-author of Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It, a world renowned book that discusses global corporate tax, single tax system and the tax competition.
This seminar also brought together famous domestic tax experts, including Professor FENG Xingyuan from CASS, Professor CAI Chang from Central University of Finance and Economics, Professor LI Weiguang from Tianjin University of Finance and Economics, and Professor NI Hongri from Development Research Centre of the State Council. Audience from the media, businesses, and institutions were also present.
Mr. Michell started from the engine of economic growth, stating that the origin of growth is the rational investment of capital and labor, and a good tax system will facilitate the formation of such an investment combination. To illustrate, the prosperity of a nation relies on the low tax rate, avoiding dual taxation on deposits and investments, and a flawless tax system that is neutral without favorable treatment of different tax payers. If the tax rate exceeds 20%, or 30-40%, then negative effect on the economic growth will show, and more incompliance will come about. He came to these conclusions after his research on American corporate tax institutions.
Professor NI Hongri thought the problem of dual, even multiple taxation on corporates exists in China. The value added tax and the income tax are, in fact, triple taxation on enterprises. Further reforms should be undertaken to improve and correct the flaws.
Professor LI Weiguang explored the issue of liberty and freedom in the tax system. He emphasized that the Chinese tax system have many flaws that impede the creativity of enterprises and individuals. Besides, he thought the main tax structure in China relies heavily on enterprises, which showcases the operation pressure faced by China’s private enterprises.
Professor CAI Chang started with commenting on Mr. Michell’s book. He touched upon the point of the on-going flat global tax dynamics which is further made transparent by the big data and the Internet. He also raised the issue of tax system competition and the potential of new forms of tax in the information era.
Professor FENG Xingyuan moderated the seminar. In his comment, he introduced Unirule research on the survival and development environment of private enterprises in China and the tax system. He stressed the importance of adopting a single tax system that will greatly improve the environment of the private enterprises. He also pointed out the potential of further economic growth should this tax system be reformed in that direction.
