In fact, on the topic of trade war, let's not look at jokes. Although the effect is not as direct as the increase in interest rates, its impact may be indirect and long-term. On the one hand, the United States wants to negotiate with us, on the other hand, it threatens us to impose another 25% tariff on 200 billion Chinese goods. Being sensitive to the policy response, the stock market of our country has fallen sharply all the way. Why should the United States launch a trade war this year, because the rise of China makes the United States more and more afraid, the United States launched a trade war in order to fight against China and contain China. The reason why the United States launched a trade war instead of other wars is that the world today is an economic integration world. No one can live without anyone. If you leave, you will lose. Obviously, the United States can't live without the world. If the United States leaves the world to develop alone, how can the United States grab wealth from other countries to support its high welfare system? It can also be seen from the history of the United States that the United States made its fortune by selling military supplies during World War II. Since the United States is inseparable from the world and the Americans are smart, the United States wants to let China leave the world or the world leave China through trade warfare, so it launched a trade war.

    In December 2017, the United States passed the largest tax reform in the history since President Reagan. The burden reduction was very obvious. It happened that in March 2018, the United States launched a trade war. The main measure was to raise tariffs. That makes sense. First, the United States cut taxes at home, then launched a trade war and raised import tariffs in China, which led Chinese manufacturing enterprises to return to the United States, thus hindering China's development.

   Let's see what changes have taken place in the tax system in the United States before and after the tax reform.

   How has China's tax burden changed since the beginning of the trade war? Let's take a look at the comparison between GDP growth and tax growth in the first half of the year.

    In the first half of 2018, the tax revenue (deducted from export rebates) organized by the tax authorities nationwide reached 8160.7 billion yuan, an increase of 15.3% over the same period last year. Domestic VAT, enterprise income tax and individual income tax increased on a large scale, by 16.6%, 12.8% and 20.3% respectively. According to the National Bureau of Statistics, the gross domestic product in the first half of the year was 41896.1 billion yuan, an increase of 6.8% over the same period last year. According to the simultaneous calculation of tax growth rate and GDP growth, in the first half of 2018, instead of tax reduction, the value-added tax was overcharged by 2011.1 billion yuan, 36.53 billion yuan of enterprise income tax and 91.2 billion yuan of individual income tax, totaling 328.84 billion yuan. And the total tax revenue of enterprises to pay more than 90%, which shows that the enterprise tax burden is still very heavy.

    Let's look at the tax burden comparison between China and the United States.

    According to World Bank estimates, the total tax rate of Chinese enterprises (the proportion of total corporate tax and government fees to corporate profits) is much higher than the total tax rate of the United States. In 2016, the total tax rate of Chinese enterprises was 68%, ranking 12th among 190 economies in the world, while that of American enterprises was 44%. There are huge differences in tax systems between China and the United States, which also results in different direct tax burdens between China and the United States. Macro-tax has different measurement. If we only calculate the proportion of tax revenue to GDP, China will be about 18.5%. As a large part of China's fiscal revenue is non-tax revenue, the actual value will be much higher than this. There is no social security tax in China's taxation, and social security is in the form of payment. The macro tax burden of the United States includes social security tax. If we exclude the calculation of social security tax, the proportion of tax revenue in GDP of the United States is about 19%, which is comparable to that of China. The indirect tax system in China determines that most of the tax revenue comes from enterprises. The total tax revenue of enterprises accounts for more than 90%, which is an important reason for the heavy tax burden of enterprises. The American personal income tax accounts for about 47% of the federal government's tax revenue, while the Chinese personal income tax only accounts for about 6% of the total tax revenue.

    Watch the trade war. A cool head will prevail. There will be no winners in the trade war. Mutual benefit and win-win is the only way out.

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