Obama Administration Applauds Tax Cuts—In People’s Republic of China
(CNSNews.com) - While making positive comments about the most recent five-year-plan developed by the Communist government of the People’s Republic of China, Undersecretary of State Robert Hormats specifically applauded China’s decision to lower taxes because it would spur economic growth.
“What’s really encouraging to me is that there are a lot of groups in China that are reform-minded,” Hormats said while addressing a group of foreign reporters in New York City last week.
“And if you look at the 12th Five-Year Plan, a lot of what is in the 12th Five-Year Plan in China is very consistent with the kind of things we would like China to do in the interest of the global system,” said Hormats.
“China wants to have better distribution of income, for instance,” said Hormats. “China wants to depend less on exports and more on domestic demand, domestic consumption. China wants to address its environmental problems. It wants to deal with issues of corruption. All these things are big pluses.
“China lowered taxes very recently, which will help increase demand, but it’s also good to boost consumption in China,” said Hormats. “So I think what’s interesting is that—sure, there are issues with China that I’ve mentioned--but I think a lot of the reform procedures that are going on in China are consistent with the kind of things that we think will be good for China and for the global system.”
Meanwhile, in a speech in Vermont on Friday, President Barack Obama argued that it was "basic math" that taxes needed to be increased on wealthy Americans so the government could provide more to the poor.
“But if you’re making more than $1 million a year, you can do a little more,” Obama said. “This is not class envy. This is not class warfare. This is basic math--that’s what this is.
“Look, if somebody like me gets a tax break that they don’t need and that the country can’t afford, then one of two things are going to happen--either it adds to our deficit, or we’re taking something away from somebody else,” said Obama.
“Look, there’s no way of getting around that,” said Obama. “Either folks like me are doing more, or somebody who can’t afford it is getting less. And that’s not right.”
According to the U.S. State Department, China has an “authoritarian” regime run by the Communist Party.
“The People's Republic of China (PRC), with a population of approximately 1.3 billion, is an authoritarian state in which the Chinese Communist Party (CCP) constitutionally is the paramount authority,” says the most recent State Department report on human rights in China. “Party members hold almost all top government, police, and military positions. Ultimate authority rests with the 25-member Political Bureau (Politburo) of the CCP and its nine-member Standing Committee.”