Why only 2% of Chinese pay any income tax

Re:Why only 2% of Chinese pay any income tax by bilbo0s on Monday December 03, 2018 @09:00AM (#18588748)

If payroll taxes were 100% the responsibility of the employer, and included the employee's income tax obligation. So in the US the taxes are effectively split between the employer and the employee, but in China they're basically all on the employer with a trivial amount charged to the employee.

One of the gotchas if you plan on operating a business in China at all.

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Re:Why only 2% of Chinese pay any income tax by conanbatt on Monday December 03, 2018 @12:04PM (#18590347)

Economically speaking, payroll taxes are always a burden on the employee, not on the employer, even if the employer is the one writing the check.

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Re:Why only 2% of Chinese pay any income tax by aoeusnth1 on Monday December 03, 2018 @06:34PM (#18594302)

Doesn't that depend on the relative price sensitivity of the employer vs. the employee - namely, the elasticity of labor demand / supply?

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Re:Why only 2% of Chinese pay any income tax by conanbatt on Monday December 03, 2018 @07:00PM (#18594473)

That is correct, its just that employees are a lot less inelastic than employers, for multiple practical reasons.

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