The economic crisis of 2016

The biggest threat of China in 2016 is an economic crisis, which will come to culmination in July this year. The depression might pass through peacefully if the Chinese government could divide the national wealth among the commoners rather than irritate them to resist with any wrong policy. If there is one evil enough to worsen this recession, it is the inheritance tax that has provoked critisim across China.

"Under the latest revised version of the proposal for inheritance tax, the cut-off amount for inheritance tax is 800,000 yuan (HK$1.01 million), and net successions of 5 million, 10 million, and 30 million yuan will be subject to tax amounts of 840,000 yuan, 2.09 million yuan, and 10.34 million yuan respectively."

Under this proposed law:"A hardworking couple, with the help of both sets of their parents and a 30-year mortgage, finally bought a house. After 30 years, the mortgage is paid off, and after another 30 years, the couple passes away, and their child inherits the house. The house is worth millions on the market, which means tens of thousands in inheritance tax. After working hard for eight years, the child finally pays off the tax and inherits the house – and after two more years, the house's 70-year-long right is over."

Property tax is the other devil to trigger the explosion of the economic crisis. It would charge 0.5 percent of the property value for houses between two and three times the market average, and 1 percent for properties more than three times the average. Moreover, it would charge 0.6 percent on second homes. The beauty of this tax is that it would be paid every year by homeowners, as a way to discourage speculation.

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