Mao Zedong and the Political Economy of the Border Region: A by Mao Zedong, Mao Tsai'tung, Andrew Watson

By Mao Zedong, Mao Tsai'tung, Andrew Watson

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Extra info for Mao Zedong and the Political Economy of the Border Region: A Translation of Mao's Economic and Financial Problems (Contemporary China Institute Publications)

Sample text

It ap­ plied to the amount of a new car’s price above $40,000. The tax on that amount started at 10 percent in 1990 but was phased down to 3 percent by 2002. Thus, for example, a personal car bought for $50,000—business vehicles were exempt—would have been taxed at 3 percent of $10,000, or an additional $300, collected by the car dealer on behalf of Uncle Sam. 14 The income lost to the federal government is small potatoes on the national scale, but somewhere the federal government will need to find—meaning borrow, in the short term—several hundred million dollars each year that buyers of expensive cars used to pay.

The corporate headquarters may be nothing more than a post office box. S. companies have used this “Bermuda loophole,” costing the government $4 billion a year in lost revenue. For example, at the end of 2001 the indus­ trial manufacturer Ingersoll-Rand moved its legal headquarters to Bermuda while its main office remained, as always, in Woodcliff Lake, New Jersey. By so doing, Ingersoll-Rand avoided paying more than $50 million per year in federal taxes. After 9/11, as the country shifted to a wartime mentality, critics called the Bermuda-loophole companies unpatriotic.

Local Governments As go the states, so go the cities and towns. Local services are eroding across the land. As new homeland security demands compete with other local budget items, and as the federal and state governments grow stingier, local communities feel the pain in their understaffed schools and police and fire depart­ ments, their increasing local and state tax bills, and their unre­ paired potholes and crumbling bridges. Cities and towns face new mandates and needs related to homeland security that are unfunded by federal and state gov­ ernments.

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