February 06, 2006

Another testament to the success of Chinese communism

China says income gap between rich, poor at 'alarming' level.

The income gap between rich and poor in China's cities has reached an "alarming and unreasonable level."

The poorest 20 percent of the urban population get only 2.75 percent of the total urban income, the high level government National Development and Reform Commission said in its report, the Xinhua news agency reported.

The actual figures may be even more biased against the urban poor, as the income may be underestimating the extent of China's growing income gap, the commission said.

"China is still lacking an income adjustment mechanism," Professor Li Yingsheng of the Renmin University of China told Xinhua.

Taxation, one of the most widely used methods of income adjustment, is also being used for this purpose in China.

China's parliament last year revised a tax law that doubled the threshold for payment of personal income tax to 1,600 yuan (197 dollars) a month to ease the financial burden on the country's poorest.

Income gap you say?

Hmm...sounds a bit "capitalist" to me...

Posted by Kyer at February 6, 2006 02:55 PM | TrackBack