CHINA-ECONOMY: CLARIFICATIONS REGARDING 'COMMON PROSPERITY' AND TAXATION

Han Wenxiu, Deputy Director of the Office of the Central Financial and Economic Affairs Commission, clarified at a press conference in Beijing on August 26, that China’s efforts to build a society of “common prosperity” are not about achieving egalitarianism and do not mean “robbing the rich to give to the poor”. He said common prosperity allows for “the existence of a certain gap” and the country encourages people to work hard and bring innovation. It also allows some to “get rich first” and then guide and help others to become rich.  
Han Wenxiu also said this tertiary distribution is “not mandatory" and that National taxation policies should give “appropriate incentives” to charitable donations, which would play a supplementary role in helping to improve the income distribution structure.






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