I think though that overregulation is a bigger issue than taxation. The fact is that income taxes only tax against profits, though excise taxes can be a bigger deal (think gallonage taxes on liquor produced) because those increase your overall cost.

There are two problems with overregulation though. The first is that it is a up-front cost that keeps on coming up day in and day out. It's not like an income tax that hits your profits. It's more like an excise tax on goods produced. Overregulation is a drag on the economy. It is a drag that makes it harder to break even. It is a drag that makes it harder to do anything. It's a bigger issue than income tax rates.

But it's even worse than excise tax rates. Regulatory compliance is something that takes resources. The more resources you have the easier it is. Consequently over-regulation protects big players by raising huge barriers to entry.

And at least in a country like China, if the system is unworkable a whispers in ears and envelopes of cash probably go a long ways towards making the system workable..... Over here we have a slightly different approach. We pay a professional class of people large rates, and, as in places like China, they then represent our cause to various officials. It's a question as to whether you hire an "agent" or whether you hire a "lawyer." Apparently one counts as corruption and arguably bribery while the other does not.