Tax Reform for China

China has decided to reform their tax system and some people just aren't too pleased with that.  This new tax system is aiming to boost a sector that creates more jobs, less dirt, and almsot as much output as industry does.  This specific reform extends China's value-added tax (VAT) to a variety of services.  This reform has quickly spread to other cities and neighboring provinces.  The tax now contributes a quarter of its revenues to the Chinese government and so far, has eased taxes by about $6.4 billion dollars.  Many businesses have begun complaining because their taxes have increased significantly.  Is this China moving towards a more capitalistic society?  We'll just have to wait and see.



http://www.economist.com/news/china/21572802-chinas-most-underrated-sector-benefits-undersold-tax-reform-better-service-game?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227