China's capital flight is the most serious:
China is the friendliest country in the world for the wealthy; our wealthy people bear very little tax, and their income far exceeds what they should earn.
In recent years, the capital of wealthy individuals that has fled abroad exceeds 100 trillion RMB, all without paying taxes according to the law.
I know many entrepreneurs from Europe and America; their companies generate about 100 to 200 million USD in annual revenue, and what they can take home is only about 1 to 2 million USD, because there are a lot of expenses that need to cover taxes, employee costs, etc.
Entrepreneurs with annual revenue of 1 billion in China need to take at least 100 to 200 million home each year; if they can't get enough, they resort to theft.
Our taxation on the entrepreneurial class, including the bosses, is too lenient, leading to imbalances in distribution, which is the main reason for our current economic imbalance.
In Guangdong, I have seen many bosses who take 100 to 200 million home each year but pay only a few thousand in taxes, which is even less than what workers pay.
Now, taxes on the wealthy class's income tax, exit tax, renunciation tax, etc., must all be paid.
We cannot allow the wealthy to make money in the country while stealing within the country. Then leave the debts and all burdens domestically while enjoying themselves overseas.
Professor Liu Yuanchun's "Strong Government, Rich Enterprises, Poor Residents": The imbalance in income distribution and the economic deadlock reflects that the essence of consumption issues is a matter of distribution. At a deeper level, it is a problem of the development model.
