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Does China Rely Too Much on Taxing Salaries?

Over the last few years, the central government has derived more and more of its tax revenue from taxing salaries. Photo: VCG
Over the last few years, the central government has derived more and more of its tax revenue from taxing salaries. Photo: VCG

A former talk show host’s accusation that tax evasion is prevalent in show business has reignited a debate in China about whether the government relies too much on taxing people’s salaries.

Cui Yongyuan, a former talk show host at state broadcaster CCTV, took to social media over the weekend to accuse a prominent, but unnamed, movie star of tax evasion, unintentionally sparking a debate about the fairness of current tax system as the central government collects the majority of its tax revenue from people’s wages.

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