*From Bloomberg News reporters:*
The era of big paychecks for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign.
The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and in some cases return pre-tax pay in excess of 2.9 million yuan ($400,000) from previous years, according to people familiar with the matter.
China Merchants, China Everbright and Citic Group are among state entities that have conveyed the guidance to employees at some of their units in recent weeks, said the people, asking not to be identified discussing a private matter. Some mutual fund managers are also being pressured to return non-compliant pay earned in previous years, the people said.
> If there is a minimum wage there sure as hell should be a maximum one.
Phrased this way, sounds like you’d also be happy if there was no minimum wage?
Maybe the support for a maximum wage doesn’t depend on the existence of a minimum wage.
Many people who wouldn’t support a maximum wage would just respond to you with: ‘Well, if the minimum wage bothers you so much… let’s just remove that.’
FYI, anyone who is favoured by the CCP will get to keep their money and bonuses and priviledges. The real purpose of this is to prevent the rise of rich people not in line with the party.
China has already killed its own edge in a number of sectors just to make sure the "new rich" don't start getting ideas about who's in charge.
he's making a cautious comeback apparently, because China's growth has sputtered down so now the CCP likes business again. He's grovelling to the CCP cause he doesn't have a choice, so he's still on a very short leash.
Alibaba's stock value went down 75% throughout the crackdown though, so i don't think that'll fix it.
As if they're not shy about imprisoning anyone or "reallocating the bank contents" of any non-patry member already?
No, this is just an authoritarian nation trying to put on a show of being a communist nation.
https://www.lemonde.fr/en/china/article/2023/06/17/dismantling-of-alibaba-empire-marks-end-of-an-era-for-china_6033097_162.html
Alibaba is the most obvious example, but the tech sector in general, as well as the education and real estate sectors
https://www.google.com/amp/s/www.aljazeera.com/amp/economy/2021/12/27/chinas-year-of-crackdowns-party-first-business-second
They present it as "cleaning up corruption" but then they tear apart Alibaba and hand it over to party stooges who are already billionaires, to fatten themselves further on the carcass.
All that hurts is the people working there which is the majority of Americans. The [wealthy already pay the majority of taxes](https://www.americanexperiment.org/the-rich-pay-the-majority-of-federal-income-taxes/#:%7E:text=But%20the%20top%201%20percent,by%20half%20of%20all%20taxpayers) and [corporate income tax just gets passed on to employees and consumers](https://tax.kenaninstitute.unc.edu/wp-content/uploads/2020/04/corptaxprice.pdf).
High corporate taxes led to higher investment in companies, higher pay, and health insurance. Because there was little points to excessive profits.
But that is just a historical fact.
Keep going with theories as to what a truly strong clamp on endless profits would do.
> High corporate taxes led to higher investment in companies, higher pay, and health insurance. Because there was little points to excessive profits.
What are you even saying? How the hell would corporations earning less money make them pay employees more? What do you disagree with about the study?
> But that is just a historical fact.
["Informed by our empirical estimate, we can gauge the incidence of corporate taxes on consumers by relating the welfare change of consumers induced by a marginal change in the net-of-tax
rate to the sum of the welfare changes of consumers, workers and firm owners \(Suárez Serrato and
Zidar, 2016; Fuest, Peichl and Siegloch, 2018\). **We find the incidence on consumers, workers and
shareholders is 31%, 38% and 31%, respectively**"](https://tax.kenaninstitute.unc.edu/wp-content/uploads/2020/04/corptaxprice.pdf)
Meaning 69% of the tax increase ends up being paid by consumers or by stealing from workers through stagnations & lay offs, while 31% remains on all shareholders which includes anyone with retirement accounts that are invested in the company.
So if you want consumers, low/middle class workers, and retirees to suffer economically so you can feel good and moralistic about "making corporations pay their fair share" go ahead, but it's a bad way to raise taxes.
> Keep going with theories as to what a truly strong clamp on endless profits would do.
I'm the one who posted sources, you're the one using conjecture.
My statement isn't anti-taxes or anti raising taxes in other ways to pay for programs we need. Corporate income tax is a known bad way to do things and this is widely agreed upon by economists.
When they only saw a marginal percentage of their gains due to taxes, corporations were more likely to spend rather than take profit. Why not invest in research and facilities rather than give that money to the government? Why not attract better talent and more loyal employees with higher wages rather than losing most of that potential profit to taxes? Everything you are spewing is what the .1% threaten with because they don't want to lose their stewardship of the world. Yes they make sure that people feel pain when they are made to pay taxes. Not because they need to, but to scare everyone into compliance. If they don't find a way to coexist, then at some point everyone else's existence is going to depend on removing them.
> When they only saw a marginal percentage of their gains due to taxes, corporations were more likely to spend rather than take profit.
This is a total fantasy which there are limits to. Again, what do you think the study got wrong?
> Yes they make sure that people feel pain when they are made to pay taxes.
Now you're agreeing with me? This is the opposite of what you've been saying the whole time.
> Not because they need to, but to scare everyone into compliance. If they don't find a way to coexist, then at some point everyone else's existence is going to depend on removing them.
Bizarre conspiracies which you have 0 evidence for don't accurately describe the world around us and will lead you to bad ideas (like wanting higher corporate tax rates). You clearly don't understand the first thing about running a business.
I wasn't agreeing with you. Merely agreeing that the ownership class will manipulate reality to scare people h to the actions they want.
None of the discussions on taxation of corporations has anything to do with running a business.
You are being very disingenuous and using logical fallacy to bolster your weak position. The time period that grew the middle class, grew giant corporations, and had the US lead the world in research all happened during some of the highest taxes. That isn't a coincidence.
I don't find your arguments showing any strength. Your personal attacks and unrelated arguments aren't worth following. Have yourself a great night.
> I wasn't agreeing with you. Merely agreeing that the ownership class will manipulate reality to scare people h to the actions they want.
You literally just did agree with me. If you think this is true, and businesses will make things worse with higher corporate taxes, why tf would you be advocating for it?
Businesses raising prices and stagnating wages when their taxes increase isn't "manipulating reality to scare people", it is them trying to keep their business afloat amid external factors.
If you were running a business you'd do the same thing unless you wanted to consistently lose money until it tanked. That's why you're commenting on Reddit instead of running a business and creating jobs.
["Many economists, including those at the Organisation for Economic Co-operation and Development \(OECD\), agree that the corporate income tax is one of the most harmful and least efficient ways to fund our priorities."](https://taxfoundation.org/taxedu/videos/who-bears-burden-corporate-income-tax/)
Read through [this Reddit thread](https://www.reddit.com/r/AskEconomics/comments/170gyee/is_there_any_empirical_evidence_for_the_idea_that/) on /r/askeconomics to learn more
> You are being very disingenuous and using logical fallacy to bolster your weak position.
What logical fallacy is that lol? I'm the only one to bring any sources to support what I'm saying. It isn't even controversial among economists.
> The time period that grew the middle class, grew giant corporations, and had the US lead the world in research all happened during some of the highest taxes. That isn't a coincidence.
What data do you have that shows middle class growth and corporation growth was caused by the highest corporate tax rate? You can't just say, "that isn't a coincidence" and have it be true lol, correlation != causation.
They will leave with nothing, if they are allowed to leave at all, if they don’t play by the rules. So no, they actually won’t unless they want throw away everything they have built in China. Which I suspect they don’t.
They cannot leave. China bank rules are way more strict. A lot of athlete's have also trouble to export their funds earned in china in other countries. Leaving china for somewhere else to dodge a rule like this would just make it so the government freeze their assets and fund
That’s the one thing I admire about China.
When people says “tax the rich” and the go to response is “they’ll just leave”.
The answer to that should be “okay, let them, and seize 100% of their assets while you kick them out the door.”
Like Bezos wants to leave instead of paying a 3% wealth tax? Well thank you for donating 100% of your Amazon shares to Uncle Sam.
You tell billionaires that they can choose between a 3% wealth tax and forfeiting all of their assets, and you could bet your assets they would drag their balls across a mile of broken glass to make those wealth tax payments.
Hell yeah brother. Unfortunately, today, even a whisper of something like that would make billionaires use all their media ownerships to smash you with the public, also they would give the political opponent all the money and media support they wanted. This needs to be a grassroots movement first so we can stay strong when they kick and fuss.
The salary cap will never work. They will simply shift everything to benefits. a plane, a yacht and a huge mansion at the expense of the company for the manager? Everything is like in the USSR
All find and dandy until oppression, like high level oppression, starts back up and the oppressed have to leave everything behind to flee a worsening situation.
Not to mention international trade and investment issues.
Unfortunately it's just not practical to enforce in a system with a lot of banking freedom. People would just transfer their assets first before renouncing their citizenship. You would need to literally lock down all wealth transfers to outside the country first to be able to enforce it. Good luck doing that when crypto exists and also your entire society is built upon the principles of a free and open society.
You think the United States of America lacks the power to seize assets globally?
You think the US military lacks the ability to crack a crypto network if they dedicated resources to it? Hell the probably have the computing power to perform a 51% attack, making Bitcoin worthless as they could transfer everycoin to their own wallet and verify the transactions themselves.
And then what when nobody invests in your country again?
It would make sense if you argued a prosperous China was doing this, but China is doing this while its in economic freefall.
Seize a 100% of one billionaire's assets and that's the end of capital investment in your country.
Bullshit. It would still be the largest economy in the world to invest in. And less greedy people would be happy to take the place of the people whose assets are being seized.
The largest economy in the world to invest in is the United States lol, and no your second presumption just isn't true.
Chinese capital inflows have collapsed. Investors are getting their money out as fast as they can.
[https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april](https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april)
It's been that way for how long now? And have people stopped investing? The world will keep spinning. Do you have money crammed up your ass or are you just desperate to become rich one day?
Chinese capitals inflows are down significantly yes? Do you research anything before you write?
Investors are getting their money out as fast as they can.
[https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april](https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april)
No shit sherlock. Their economy is struggling since their ponzi real estate scheme collapsed. Ofc money isn't flowing in.
Don't conflate their ponzi scheme collapse and the inevitable fallout with their attempt to limit corruption and wealth inequality.
yes of course, its well known that businesspeople stop investing in factories and offices when a residential real estate ponzi scheme collapses in a country.
I won't argue with someone that thinks 100% taxation is a smart idea to an investor exiting a market. Do not confuse that for opposition to all measures against wealth inequality.
Remind me again how much real estate, construction and associated industries were responsible for Chinas GDP pre-Evergrande collapse?
And then explain to me how that absolute catastrophe isn't solely responsible for China's economic woes.
A country where they literally blow up apartment blocks in ghost cities, where the population has peaked and is now shrinking, is struggling to find investors. Who have thunk it?
No, it's the cap on incomes over $400K that's the issue. The ever growing wealth divide, which I might add directly correlates to their population issues, is not an issue that needs to be addressed, clearly.
It's end stage capitalism. The people making over $400k are contributing nothing. They are making wealth off having wealth, fucking everyone else in the process and everyone knows it. Yanking that ladder up behind them.
"yes of course, its well known that businesspeople stop investing in factories and offices when a residential real estate ponzi scheme collapses in a country"
If you can't see how that literally is the case, and yes I can see you're trying to be sarcastic, then you're a fucking idiot, completely financially illerate and not worth my time in the slightest.
They won't leave but not because of why you think they won't leave. Those who tow the party line won't be affected. Law in China is used selectively against those who aren't in the good graces of the CCP. Those who leave will run away with nothing, those who won't run away will end up disappeared, and then on a video praising the CCP.
It's got nothing to do with taxing the rich, it's about a boot stepping on a human face, forever.
When I read this sort of stuffs, i imagine the person writing this is going to first self-cap half of his income first to show the integrity. Mad respect.
Gotta make it a fair comparison. If I gave up half my income I would lose my home.
If Bezos lost half of his income, he wouldn’t even notice unless his accountant told him.
Stop bag licking billionaires, they are your enemy too, and they would sooner fuck you over than help you out.
Why would financiers flee to another country? They would move into a totally different system and lose all their connections. The article isn't referring to workers in STEM fields.
They will stay, and continue to enjoy their incredibly comfortable lives.
There are insanely smart mathematicians in finance working on trading algorithms. The best get paid very well and many would leave if their pay got capped.
> There are insanely smart mathematicians in finance working on trading algorithms.
Is this not a complete waste of their talents? Surely it's nowhere close to the most socially productive employment of insanely smart mathematicians to have them work on improving trading algorithms instead of literally anything else.
Fintech and finance have a shitload of first gen Chinese citizens. It's incredibly easy for them to get citizenship with a work sponsor. And it isn't hard to get a work sponsor with their credentials.
It doesn't answer the question of why these people would flee.
My thoughts are that since this is being aimed at senior level employees at these banks, these are career guys. Their connections will run so deep that earning less salary in one area won't really matter. Their family likely makes far more on side-ventures.
And citizenship will not be a draw as they will have already been able to buy their way in somewhere if desired.
>why would they flee
I can probably come up with a thousand reasons why someone would leave China if I had the time.
If they already have money, they get a work visa, buy a house in Irvine, stick their family in it, and go work some cushy consulting job, all while still operating with their global/Chinese ties but as a US citizen.
Maybe a few but where are Chinese upper management gonna get jobs that pay more than 400k a year in the US?
Unless you mean the clawback. I still think almost all will stay. Besides CEOs who was making over 400k in China?
A 400k cap would technically limit ones wealth to around 20 to 30 million max if you could roll over your limits from 18yo. Anything over gets taxed away.
Sounds good to me.
Taxing salaries is how rich people convince poor people to tax the middle class instead (spoiler alert: actual rich people don’t make money off of salaries)
Yes but if your lifetime income limit was 400k pa, then it's all the same. At some point that capital gain needs to be realised and become income.. Whether that's during ones life or at death. So any amounts over 20 to 30mil would get taken.
Again, you're assuming the rich get paid in money. They get paid in stock. The irs only values the stock once it is sold, and you get money for it. It's the same at your little Edward Jones account. It's practically impossible to overhaul to account for this
I feel like you’re creating an unnecessary problem here. We could easily change the tax laws to include compensation in the form of stock as part of income. If we would to drastically change our tax systems by capping income, doing that also would be easy.
What a weird way to cut up my comment to try and make a joke. I clearly said if we were able to drastically change the tax code, then the other thing would be easy. Not that drastically changing it would be easy. Read more good dude.
But the ultra wealthy borrow against their stocks for spending money and its untaxed because it’s a loan. They can use this avoid capital gains taxes since the asset isn’t being sold. So while all those things would be good to do, there is a lot more that should also be done.
I never quite understood how this is a “loophole”.
They eventually have to pay back the loan with their own income which *is* taxed. On top of that they have to pay interest.
It’s no different than a HELOC.
> its untaxed because it’s a loan.
of course. Why would taxes be levied on money that's borrowed?
Now, how do you think the interest on the loan was paid though? They have to either borrow more, accuring more interest (and eventually run out of their line of credit), or they have to obtain some sort of income to service the interest.
Therefore, they are taxed, because they have to use some liquidity to service the interest.
This. It's normal tax deferral. For some reason this loan things always comes up as some big example. There are far worse issues in the tax code than some tax deferral. That bill comes due at some point.
I don't want to say I see NO issue with it but it such a Reddit trope suddenly.
The bank that's lending the money will want to reduce their risks, because stocks as collateral is volatile. They will limit the total amount (the LVR or loan to value ratio), probably to something like 50%.
If indeed the stock is going up real fast, that would be fine for the bank to continue to extend the line of credit. But there's a stopping point somewhere, esp. if the interest itself is also being capitalized into the loan.
Easier to just go to pre Reagan comp. Where companies don’t issue stock en masse to executives.
It fixes a lot of things.
Then go back to Ike’s top tax rate.
And ban stock by backs.
Healthy market happens a lot faster that way
Many CEOs probably have salaries closer to 2-10 million depending on company size. Still I very much doubt many of those CEOs are bringing 80-100x the value of the median salaried worker in the company. They're paid to make a few important decisions, but in most cases other experts all but spell out what the correct decision is for the CEO in their analysis and reports etc.
They might lean heavily on advisors, but it still falls on them to make the decisions that play a critical role in determining the health of the company. Imagine the difference between a decent CEO and a somewhat bad one, let's say the former's superior decision making leads on average to 5-10% growth of a company, compared to the latter's bad decision making causing the company to shrink by 5-10% per year on average. The difference in those two outcomes could very well be worth millions or more per year, especially for a large firm. In that case then yes, their value output would be close to 100 times that of the average worker, especially since as a tautology there's many average workers and so it's comparatively easier to find another.
It really wouldn't. Take Walmart for example, the highest paid person at Walmart is the CEO with a total compensation of 26.9 million. This means the entire Walmart corporation wouldn't have any change at that level of cap.
Even if it was included, even if you took the entire compensation package of the CEO and distributed to the employees the average employee would only get a raise of $1.06 a month. You can multiply that as many times as you want, imagine stripping the highest paid employees of Walmart of $269M a year in compensation for example. That's only about $10 a month extra per employee and Good luck actually coming up with $269 million that can be redistributed.
I'm guessing you didn't read the article? This isn't some tax the rich story, it's basically the equivalent of if Google went bankrupt and the US Government ordered all of their top software developers to return their past salaries over a certain threshold to prop up the company.
This is bailing out shareholders by robbing top employees. This is the absolute last thing America needs.
How is stealing wages from employees accountability, especially doing so for prior years? Accountability is telling the investors they should have picked better companies to invest in and they are just going to have to eat the losses.
Nah, it’s a stupid idea. It just causes some of the smartest people to leave for better jobs in other countries. China will learn when their brightest are making money for European and American companies
The best and Brightest aren't billionaires, they're Engineers, reaserchers and professors, most of whom make SURPRISINGLY and very dissapointingly little money.
Elon didn't invent SFA. He purchased it then paid people pennies on the dollar to do the actual work for him with dirty money, and also was a litteral fucking illegal immigrant while doing it who was only allowed to stay cause he had some shady connections and was good at lying.
Bill gates swindled, ripped off, and stole all of Microsoft's best ideas from other people... Like he BOUGHT dos from someone else for a few thousand when he was working on selling it for millions, and stole most of what would become windows from Apple.
Steve Jobs was just the sales guy for Steve Wozniak's actual work. Also he just took the entire concept of a gui and mouse from Xerox who invented it in their Palo Alto research lab.
Besos just exploited every labor loophole he possibly could and got SUPER lucky with his timing.
Tyler Perry just made Madea movies and the guy basically lives in a fucking castle.
And Kanye and the Kardashians are all fucking IDIOTS who survive on spectacle alone.
THOSE are billionaires, and the only reason they got where they are was by being HUGE PSYCHOPATHIC ASSHOLES, exploitation, theft, and luck.
CEOs are literally just the fucking 'ideas guy' of corporations. They're not special and honestly in a few years I'm sure we'll start seeing wall street shareholders wondering why they're paid so much when 99% of what they do could be automated with 10 lines of python and $50/m of openai calls.
No... The best and brightest won't be going anywhere. They'll all probably end up making more money if anything.
The best and brightest are making over 400k. These people will absolutely leave if you cap their salaries. You see it all the time with skilled people leaving European countries to work for US companies willing to pay them significantly more. This is just another stupid ass populist idea reddit has circlejerked itself into thinking is good
You’re telling on yourself when I say best and brightest and the first thing you think of is CEO’s.
Lol. It depends on the industry, but the best and brightest may not be billionaires but they are absolutely worth a lot of money. They will always move to the highest payer. And a lot of them start their own businesses too.
lol, you people truly deserve to be exploited. Like we didn't bail out all those "smart people" not so long ago socializing their losses after they filled their pockets.
I don’t trust government suits setting up arbitrary salary caps for various markets, and I am sure they will not act in good faith, just like Xi is not.
As I said, you people just deserve to be robbed... you can read more here: https://www.bnnbloomberg.ca/china-funds-weigh-415-000-pay-cap-in-common-prosperity-drive-1.2058399
It says they clamp down on pay and bonuses given while mutual funds lost 1.9 trillion Yuan over the last two years.
If we're talking about finance, there is no inherent genius in compound interest, fees to move your money, and insider trading. Let em walk. There is always another generation of cut throats to market insurance scans to the senile. Let them jump.
Many new 400k positions suddenly opened.
Hey job creation though. Seriously, I think they are gonna up the antee on nepotism, unless there are some loopholes in place on purpose for the rich fucks
Making money is great motivator. If Xi want to cap wages then he himself should set example by cutting back his income and that include any from under the rug.
I’m not sure if this even matters tbh.
As it’s not uncommon in China for people from poor, middle and rich backgrounds to avoid fully reporting their income. A perk of Chinas undeveloped tax system .
It’s all transparent though since nothing is encrypted over there. Just using WeChat will enable them to know everything about your spending and cash isn’t really a thing there.
Companies will always adapt. Now they'll hire the same person for three $400k positions they'll hold simultaneously instead of one $1.2m position, they'll defer pay, or they'll pay in-kind, they'll offer options at advantaged rates, they'll create shell companies and pay through those, they'll create trusts in the person's name, they'll pay in foreign currencies or .... the point is that this doesn't actually solve a problem, but it'll be interesting to see how it plays out.
Great....another exodus of Chinese and money coming our way. So much for getting inflation under control.
I better bone up on my Canadian immigration law and become a consultant. :D
Huh, actually goated. I’m usually not pro CCP but how is limiting executive pay a bad thing? Would you rather they receive US CEO levels of pay while workers get peanuts instead?
Main thing here is where the excess pay goes to; ideally workers or other stakeholders but it might get grifted if corruption isn’t dealt with.
"but how is limiting executive pay a bad thing?"
Very few people make enough money to be affected by this, so the potential return to "workers" will be very limited.
However a lot of the people who earn this much money have specialized knowledge or skillsets that can be hard to replace, and by capping their pay you're just gonna piss those people off and make them more likely to go somewhere that they won't get caps put on the amount of money they can make
Very few people make enough for this to have an effect? In China?? Hello? You're not serious right? Besides the fact the majority of taxes comes from the upper ranks.
Do you think they did this with 0 research and foresight?
Usually when you move to another country, it’s because you have an in demand skill. I don’t think being a finance bro qualifies.
This idea that everyone is just going to up and move to another country if we try and reign in the excesses of the rich is laughably ridiculous. It’s like when people complain the doctors will leave if we have universal health care. Ludicrous.
It depends, and it DOES happen if you push it too far. France tried really hard, and yeah, basically nearly all their billionaires and a solid chunk of their millionaires just left.
I don’t really think France is hurting that much because some millionaires left. But the more important point is that they were able to go places because other countries don’t do the same thing. If all western countries would pass similar anti-wealthy tax laws than it wouldn’t be an issue.
Brain drain for ppl making over 400k US dollars? The engineers and scientists in China arent making anywhere near that.
They don't even make that in the US.
You people are delusional
The drain would be of people more akin to Elon Musk than the next Titan or something. Including people who run afoul/have this used as a excuse who are no longer contributing to the system.
3 mill RMB is a lot, it's not the same conversion and 400k usd. Heck even 400k is a lot of money. And these are financiers, bankers, they are not that productive in a society.
With a country as corrupt as China this will only lead to more corruption as the rich find ways to continue exploiting the system. And Xi will gleefully take advantage of said corruption by selectively purging enemies for participating in said corruption. This is not speculation, this is Chinese history, like all things it has happened before and will happen again.
Sounds good in theory (to a degree), but this realistically means nothing for the people that are the real problem I.e. the truely corrupt who make their huge profits indirectly by illegal means. This will mostly hurt the high income earning regular joe who abides by the law.
Look up Chinese banking laws. It’s very hard to get money out of China. Even foreign professional athletes struggle to bring home a lot of what they earned.
Sure we can open up visas spots for them… but they’re not bringing their fortune with them. And how much are they really worth without it?
Hell no. I no way does this country need a bunch of corrupt Chinese billionaires moving here. We have way too many rich assholes in the US as it is, we absolutely do not want *more*
The idea that all Chinese billionaires are corrupt is an unfair generalization. Many successful individuals from China have achieved their wealth through innovation and hard work. We should instead focus on welcoming diverse talents can contribute positively to the economy and society regardless of nationality.
It's not that all Chinese billionaires are corrupt, it's that *all billionaires* are corrupt. They aren't any worse than our billionaires, but our billionaires are scumbags who are making the country way worse, so it would be a disaster to take in even more of them
Why would we want Chinese billionaires???? Like you know that there's no engineers or researchers or like.
Any actually smart or productive people making that much money, right?
That's incorrect. Many billionaires are tech entrepreneurs and have engineering backgrounds. Also, despite what people say about the wealthy not paying their taxes, the top 1% pays about 45% of all income taxes.
Oh, and most people making $400k/year aren't billionaires.
*From Bloomberg News reporters:* The era of big paychecks for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign. The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and in some cases return pre-tax pay in excess of 2.9 million yuan ($400,000) from previous years, according to people familiar with the matter. China Merchants, China Everbright and Citic Group are among state entities that have conveyed the guidance to employees at some of their units in recent weeks, said the people, asking not to be identified discussing a private matter. Some mutual fund managers are also being pressured to return non-compliant pay earned in previous years, the people said.
That sounds fair. I wish we had a similar law over here. Billionaires and Wall Street are like minor gods.
If there is a minimum wage there sure as hell should be a maximum one. No one is worth the kind of money some of these C-suite types make.
> If there is a minimum wage there sure as hell should be a maximum one. Phrased this way, sounds like you’d also be happy if there was no minimum wage? Maybe the support for a maximum wage doesn’t depend on the existence of a minimum wage. Many people who wouldn’t support a maximum wage would just respond to you with: ‘Well, if the minimum wage bothers you so much… let’s just remove that.’
What about Boeing CEO?
They will flee to America.
Unfortunately yes. That said, I wish the US kick our corporations a bit in the nuts as well:
FYI, anyone who is favoured by the CCP will get to keep their money and bonuses and priviledges. The real purpose of this is to prevent the rise of rich people not in line with the party. China has already killed its own edge in a number of sectors just to make sure the "new rich" don't start getting ideas about who's in charge.
Speaking of, what’s Jack Ma been up to lately?
he's making a cautious comeback apparently, because China's growth has sputtered down so now the CCP likes business again. He's grovelling to the CCP cause he doesn't have a choice, so he's still on a very short leash. Alibaba's stock value went down 75% throughout the crackdown though, so i don't think that'll fix it.
As if they're not shy about imprisoning anyone or "reallocating the bank contents" of any non-patry member already? No, this is just an authoritarian nation trying to put on a show of being a communist nation.
Which sectors?
https://www.lemonde.fr/en/china/article/2023/06/17/dismantling-of-alibaba-empire-marks-end-of-an-era-for-china_6033097_162.html Alibaba is the most obvious example, but the tech sector in general, as well as the education and real estate sectors https://www.google.com/amp/s/www.aljazeera.com/amp/economy/2021/12/27/chinas-year-of-crackdowns-party-first-business-second They present it as "cleaning up corruption" but then they tear apart Alibaba and hand it over to party stooges who are already billionaires, to fatten themselves further on the carcass.
Yes, all CCP policies are definitely evil.
In first place it’s just plain stupid
All that hurts is the people working there which is the majority of Americans. The [wealthy already pay the majority of taxes](https://www.americanexperiment.org/the-rich-pay-the-majority-of-federal-income-taxes/#:%7E:text=But%20the%20top%201%20percent,by%20half%20of%20all%20taxpayers) and [corporate income tax just gets passed on to employees and consumers](https://tax.kenaninstitute.unc.edu/wp-content/uploads/2020/04/corptaxprice.pdf).
High corporate taxes led to higher investment in companies, higher pay, and health insurance. Because there was little points to excessive profits. But that is just a historical fact. Keep going with theories as to what a truly strong clamp on endless profits would do.
> High corporate taxes led to higher investment in companies, higher pay, and health insurance. Because there was little points to excessive profits. What are you even saying? How the hell would corporations earning less money make them pay employees more? What do you disagree with about the study? > But that is just a historical fact. ["Informed by our empirical estimate, we can gauge the incidence of corporate taxes on consumers by relating the welfare change of consumers induced by a marginal change in the net-of-tax rate to the sum of the welfare changes of consumers, workers and firm owners \(Suárez Serrato and Zidar, 2016; Fuest, Peichl and Siegloch, 2018\). **We find the incidence on consumers, workers and shareholders is 31%, 38% and 31%, respectively**"](https://tax.kenaninstitute.unc.edu/wp-content/uploads/2020/04/corptaxprice.pdf) Meaning 69% of the tax increase ends up being paid by consumers or by stealing from workers through stagnations & lay offs, while 31% remains on all shareholders which includes anyone with retirement accounts that are invested in the company. So if you want consumers, low/middle class workers, and retirees to suffer economically so you can feel good and moralistic about "making corporations pay their fair share" go ahead, but it's a bad way to raise taxes. > Keep going with theories as to what a truly strong clamp on endless profits would do. I'm the one who posted sources, you're the one using conjecture. My statement isn't anti-taxes or anti raising taxes in other ways to pay for programs we need. Corporate income tax is a known bad way to do things and this is widely agreed upon by economists.
When they only saw a marginal percentage of their gains due to taxes, corporations were more likely to spend rather than take profit. Why not invest in research and facilities rather than give that money to the government? Why not attract better talent and more loyal employees with higher wages rather than losing most of that potential profit to taxes? Everything you are spewing is what the .1% threaten with because they don't want to lose their stewardship of the world. Yes they make sure that people feel pain when they are made to pay taxes. Not because they need to, but to scare everyone into compliance. If they don't find a way to coexist, then at some point everyone else's existence is going to depend on removing them.
> When they only saw a marginal percentage of their gains due to taxes, corporations were more likely to spend rather than take profit. This is a total fantasy which there are limits to. Again, what do you think the study got wrong? > Yes they make sure that people feel pain when they are made to pay taxes. Now you're agreeing with me? This is the opposite of what you've been saying the whole time. > Not because they need to, but to scare everyone into compliance. If they don't find a way to coexist, then at some point everyone else's existence is going to depend on removing them. Bizarre conspiracies which you have 0 evidence for don't accurately describe the world around us and will lead you to bad ideas (like wanting higher corporate tax rates). You clearly don't understand the first thing about running a business.
I wasn't agreeing with you. Merely agreeing that the ownership class will manipulate reality to scare people h to the actions they want. None of the discussions on taxation of corporations has anything to do with running a business. You are being very disingenuous and using logical fallacy to bolster your weak position. The time period that grew the middle class, grew giant corporations, and had the US lead the world in research all happened during some of the highest taxes. That isn't a coincidence. I don't find your arguments showing any strength. Your personal attacks and unrelated arguments aren't worth following. Have yourself a great night.
> I wasn't agreeing with you. Merely agreeing that the ownership class will manipulate reality to scare people h to the actions they want. You literally just did agree with me. If you think this is true, and businesses will make things worse with higher corporate taxes, why tf would you be advocating for it? Businesses raising prices and stagnating wages when their taxes increase isn't "manipulating reality to scare people", it is them trying to keep their business afloat amid external factors. If you were running a business you'd do the same thing unless you wanted to consistently lose money until it tanked. That's why you're commenting on Reddit instead of running a business and creating jobs. ["Many economists, including those at the Organisation for Economic Co-operation and Development \(OECD\), agree that the corporate income tax is one of the most harmful and least efficient ways to fund our priorities."](https://taxfoundation.org/taxedu/videos/who-bears-burden-corporate-income-tax/) Read through [this Reddit thread](https://www.reddit.com/r/AskEconomics/comments/170gyee/is_there_any_empirical_evidence_for_the_idea_that/) on /r/askeconomics to learn more > You are being very disingenuous and using logical fallacy to bolster your weak position. What logical fallacy is that lol? I'm the only one to bring any sources to support what I'm saying. It isn't even controversial among economists. > The time period that grew the middle class, grew giant corporations, and had the US lead the world in research all happened during some of the highest taxes. That isn't a coincidence. What data do you have that shows middle class growth and corporation growth was caused by the highest corporate tax rate? You can't just say, "that isn't a coincidence" and have it be true lol, correlation != causation.
They will leave with nothing, if they are allowed to leave at all, if they don’t play by the rules. So no, they actually won’t unless they want throw away everything they have built in China. Which I suspect they don’t.
They cannot leave. China bank rules are way more strict. A lot of athlete's have also trouble to export their funds earned in china in other countries. Leaving china for somewhere else to dodge a rule like this would just make it so the government freeze their assets and fund
That’s the one thing I admire about China. When people says “tax the rich” and the go to response is “they’ll just leave”. The answer to that should be “okay, let them, and seize 100% of their assets while you kick them out the door.” Like Bezos wants to leave instead of paying a 3% wealth tax? Well thank you for donating 100% of your Amazon shares to Uncle Sam. You tell billionaires that they can choose between a 3% wealth tax and forfeiting all of their assets, and you could bet your assets they would drag their balls across a mile of broken glass to make those wealth tax payments.
Hell yeah brother. Unfortunately, today, even a whisper of something like that would make billionaires use all their media ownerships to smash you with the public, also they would give the political opponent all the money and media support they wanted. This needs to be a grassroots movement first so we can stay strong when they kick and fuss.
This is awesome 400k a yeas is way more than enough to live extremely well in China, it’s great the put a salary cap on the parasites .
The salary cap will never work. They will simply shift everything to benefits. a plane, a yacht and a huge mansion at the expense of the company for the manager? Everything is like in the USSR
All find and dandy until oppression, like high level oppression, starts back up and the oppressed have to leave everything behind to flee a worsening situation. Not to mention international trade and investment issues.
Unfortunately it's just not practical to enforce in a system with a lot of banking freedom. People would just transfer their assets first before renouncing their citizenship. You would need to literally lock down all wealth transfers to outside the country first to be able to enforce it. Good luck doing that when crypto exists and also your entire society is built upon the principles of a free and open society.
You think the United States of America lacks the power to seize assets globally? You think the US military lacks the ability to crack a crypto network if they dedicated resources to it? Hell the probably have the computing power to perform a 51% attack, making Bitcoin worthless as they could transfer everycoin to their own wallet and verify the transactions themselves.
And then what when nobody invests in your country again? It would make sense if you argued a prosperous China was doing this, but China is doing this while its in economic freefall. Seize a 100% of one billionaire's assets and that's the end of capital investment in your country.
Bullshit. It would still be the largest economy in the world to invest in. And less greedy people would be happy to take the place of the people whose assets are being seized.
The largest economy in the world to invest in is the United States lol, and no your second presumption just isn't true. Chinese capital inflows have collapsed. Investors are getting their money out as fast as they can. [https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april](https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april)
That’s why chinas economy is doing so well /s
It's been that way for how long now? And have people stopped investing? The world will keep spinning. Do you have money crammed up your ass or are you just desperate to become rich one day?
Chinese capitals inflows are down significantly yes? Do you research anything before you write? Investors are getting their money out as fast as they can. [https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april](https://www.bloomberg.com/news/articles/2024-05-20/china-s-capital-outflow-surges-to-highest-since-2016-in-april)
No shit sherlock. Their economy is struggling since their ponzi real estate scheme collapsed. Ofc money isn't flowing in. Don't conflate their ponzi scheme collapse and the inevitable fallout with their attempt to limit corruption and wealth inequality.
yes of course, its well known that businesspeople stop investing in factories and offices when a residential real estate ponzi scheme collapses in a country. I won't argue with someone that thinks 100% taxation is a smart idea to an investor exiting a market. Do not confuse that for opposition to all measures against wealth inequality.
Remind me again how much real estate, construction and associated industries were responsible for Chinas GDP pre-Evergrande collapse? And then explain to me how that absolute catastrophe isn't solely responsible for China's economic woes. A country where they literally blow up apartment blocks in ghost cities, where the population has peaked and is now shrinking, is struggling to find investors. Who have thunk it? No, it's the cap on incomes over $400K that's the issue. The ever growing wealth divide, which I might add directly correlates to their population issues, is not an issue that needs to be addressed, clearly. It's end stage capitalism. The people making over $400k are contributing nothing. They are making wealth off having wealth, fucking everyone else in the process and everyone knows it. Yanking that ladder up behind them.
"yes of course, its well known that businesspeople stop investing in factories and offices when a residential real estate ponzi scheme collapses in a country" If you can't see how that literally is the case, and yes I can see you're trying to be sarcastic, then you're a fucking idiot, completely financially illerate and not worth my time in the slightest.
That's not how it would go. Jeff would pay a one time 20% exit tax and take the remaining money and leave.
They won't leave but not because of why you think they won't leave. Those who tow the party line won't be affected. Law in China is used selectively against those who aren't in the good graces of the CCP. Those who leave will run away with nothing, those who won't run away will end up disappeared, and then on a video praising the CCP. It's got nothing to do with taxing the rich, it's about a boot stepping on a human face, forever.
Wealth tax is never going to happen lol
We already have a wealth tax. It's called property tax. This is a wealth tax on the largest asset most people own.
Either a wealth tax or a revolution will happen first.
When I read this sort of stuffs, i imagine the person writing this is going to first self-cap half of his income first to show the integrity. Mad respect.
Sure, pay me $1B/year and I’ll happily forfeit 90% of it in taxes.
Nice. It is always a criterium he will never qualify, so that it would never affect him. Smart move.
Gotta make it a fair comparison. If I gave up half my income I would lose my home. If Bezos lost half of his income, he wouldn’t even notice unless his accountant told him. Stop bag licking billionaires, they are your enemy too, and they would sooner fuck you over than help you out.
Just change for a house half of the price of the current yours will do.
> They will leave with nothing Nothing except all that Canadian real estate they have been using to shelter their money.
Why would financiers flee to another country? They would move into a totally different system and lose all their connections. The article isn't referring to workers in STEM fields. They will stay, and continue to enjoy their incredibly comfortable lives.
There are insanely smart mathematicians in finance working on trading algorithms. The best get paid very well and many would leave if their pay got capped.
> There are insanely smart mathematicians in finance working on trading algorithms. Is this not a complete waste of their talents? Surely it's nowhere close to the most socially productive employment of insanely smart mathematicians to have them work on improving trading algorithms instead of literally anything else.
Fintech and finance have a shitload of first gen Chinese citizens. It's incredibly easy for them to get citizenship with a work sponsor. And it isn't hard to get a work sponsor with their credentials.
It doesn't answer the question of why these people would flee. My thoughts are that since this is being aimed at senior level employees at these banks, these are career guys. Their connections will run so deep that earning less salary in one area won't really matter. Their family likely makes far more on side-ventures. And citizenship will not be a draw as they will have already been able to buy their way in somewhere if desired.
>why would they flee I can probably come up with a thousand reasons why someone would leave China if I had the time. If they already have money, they get a work visa, buy a house in Irvine, stick their family in it, and go work some cushy consulting job, all while still operating with their global/Chinese ties but as a US citizen.
Maybe a few but where are Chinese upper management gonna get jobs that pay more than 400k a year in the US? Unless you mean the clawback. I still think almost all will stay. Besides CEOs who was making over 400k in China?
They might but the money stays. China's pretty sneaky in the way they don't let the money leave.
Is it sneaky or right?
Great, now do America
For real. Forget 400k - even a $40,000,000 cap would make an insane difference to Americans QOL.
Not many have a salary of 40M. It's all capital gains and stocks. Capping salary at 40M would do next to nothing.
A 400k cap would technically limit ones wealth to around 20 to 30 million max if you could roll over your limits from 18yo. Anything over gets taxed away. Sounds good to me.
Taxing salaries is how rich people convince poor people to tax the middle class instead (spoiler alert: actual rich people don’t make money off of salaries)
Yes but if your lifetime income limit was 400k pa, then it's all the same. At some point that capital gain needs to be realised and become income.. Whether that's during ones life or at death. So any amounts over 20 to 30mil would get taken.
Again, you're assuming the rich get paid in money. They get paid in stock. The irs only values the stock once it is sold, and you get money for it. It's the same at your little Edward Jones account. It's practically impossible to overhaul to account for this
I feel like you’re creating an unnecessary problem here. We could easily change the tax laws to include compensation in the form of stock as part of income. If we would to drastically change our tax systems by capping income, doing that also would be easy.
"easily change the tax laws" lol Yes the answer is to change the laws. Easily has nothing to do with it.
What a weird way to cut up my comment to try and make a joke. I clearly said if we were able to drastically change the tax code, then the other thing would be easy. Not that drastically changing it would be easy. Read more good dude.
[удалено]
Ones overall income is already taxed. An argument can be made to increase cap gains tax, tax rates on top tax brackets, etc.
But the ultra wealthy borrow against their stocks for spending money and its untaxed because it’s a loan. They can use this avoid capital gains taxes since the asset isn’t being sold. So while all those things would be good to do, there is a lot more that should also be done.
I never quite understood how this is a “loophole”. They eventually have to pay back the loan with their own income which *is* taxed. On top of that they have to pay interest. It’s no different than a HELOC.
> its untaxed because it’s a loan. of course. Why would taxes be levied on money that's borrowed? Now, how do you think the interest on the loan was paid though? They have to either borrow more, accuring more interest (and eventually run out of their line of credit), or they have to obtain some sort of income to service the interest. Therefore, they are taxed, because they have to use some liquidity to service the interest.
This. It's normal tax deferral. For some reason this loan things always comes up as some big example. There are far worse issues in the tax code than some tax deferral. That bill comes due at some point. I don't want to say I see NO issue with it but it such a Reddit trope suddenly.
As long as the stocks grow faster than the loan balance, there is no requirement to service the interest, just gets rolled into a higher loan amount.
The bank that's lending the money will want to reduce their risks, because stocks as collateral is volatile. They will limit the total amount (the LVR or loan to value ratio), probably to something like 50%. If indeed the stock is going up real fast, that would be fine for the bank to continue to extend the line of credit. But there's a stopping point somewhere, esp. if the interest itself is also being capitalized into the loan.
Yup, cap gains just gets collected once the assets is transfered at death. Could force realizing a portion of cap gains on equities each year.
Easier to just go to pre Reagan comp. Where companies don’t issue stock en masse to executives. It fixes a lot of things. Then go back to Ike’s top tax rate. And ban stock by backs. Healthy market happens a lot faster that way
Ah yes, taxing unrealised gains. Amazing economic policy.
Many CEOs probably have salaries closer to 2-10 million depending on company size. Still I very much doubt many of those CEOs are bringing 80-100x the value of the median salaried worker in the company. They're paid to make a few important decisions, but in most cases other experts all but spell out what the correct decision is for the CEO in their analysis and reports etc.
They might lean heavily on advisors, but it still falls on them to make the decisions that play a critical role in determining the health of the company. Imagine the difference between a decent CEO and a somewhat bad one, let's say the former's superior decision making leads on average to 5-10% growth of a company, compared to the latter's bad decision making causing the company to shrink by 5-10% per year on average. The difference in those two outcomes could very well be worth millions or more per year, especially for a large firm. In that case then yes, their value output would be close to 100 times that of the average worker, especially since as a tautology there's many average workers and so it's comparatively easier to find another.
Uh huh. Go look. What happened to Disney
If it's so easy to be an executive and the reward is so great why don't you be one?
It really wouldn't. Take Walmart for example, the highest paid person at Walmart is the CEO with a total compensation of 26.9 million. This means the entire Walmart corporation wouldn't have any change at that level of cap. Even if it was included, even if you took the entire compensation package of the CEO and distributed to the employees the average employee would only get a raise of $1.06 a month. You can multiply that as many times as you want, imagine stripping the highest paid employees of Walmart of $269M a year in compensation for example. That's only about $10 a month extra per employee and Good luck actually coming up with $269 million that can be redistributed.
Musk's salary for 5 years at Tesla is zero dollars. At the same time, he received $56 billion, but in options.
How so? Wouldn't it just go back to the corporations?
If you also limit their distribution they may get creative, or pay more employees, lower their prices.
Maybe. Or just give out a higher dividend to share holders.
That’s why I said to limit their distribution. This is capping the CEO payments only.
That would be nice. I agree
This would also be unconstitutional
It’s hypothetical. And the news is about china.
Its actually absolutely wouldn’t make a difference tho
No CEO is worth 300x the value of their lowest paid worker. It's ridiculous. Not to mention all the layoffs right after upper management get a bonus.
I'm guessing you didn't read the article? This isn't some tax the rich story, it's basically the equivalent of if Google went bankrupt and the US Government ordered all of their top software developers to return their past salaries over a certain threshold to prop up the company. This is bailing out shareholders by robbing top employees. This is the absolute last thing America needs.
So accountability, got it.
How is stealing wages from employees accountability, especially doing so for prior years? Accountability is telling the investors they should have picked better companies to invest in and they are just going to have to eat the losses.
Because if those damn employees weren’t lazy and worked their wage properly, then the shareholders wouldn’t need bailouts!/s
Hopefully, you are young enough to see the fruitation of your desires. Good or bad.
Nah, it’s a stupid idea. It just causes some of the smartest people to leave for better jobs in other countries. China will learn when their brightest are making money for European and American companies
The best and Brightest aren't billionaires, they're Engineers, reaserchers and professors, most of whom make SURPRISINGLY and very dissapointingly little money. Elon didn't invent SFA. He purchased it then paid people pennies on the dollar to do the actual work for him with dirty money, and also was a litteral fucking illegal immigrant while doing it who was only allowed to stay cause he had some shady connections and was good at lying. Bill gates swindled, ripped off, and stole all of Microsoft's best ideas from other people... Like he BOUGHT dos from someone else for a few thousand when he was working on selling it for millions, and stole most of what would become windows from Apple. Steve Jobs was just the sales guy for Steve Wozniak's actual work. Also he just took the entire concept of a gui and mouse from Xerox who invented it in their Palo Alto research lab. Besos just exploited every labor loophole he possibly could and got SUPER lucky with his timing. Tyler Perry just made Madea movies and the guy basically lives in a fucking castle. And Kanye and the Kardashians are all fucking IDIOTS who survive on spectacle alone. THOSE are billionaires, and the only reason they got where they are was by being HUGE PSYCHOPATHIC ASSHOLES, exploitation, theft, and luck. CEOs are literally just the fucking 'ideas guy' of corporations. They're not special and honestly in a few years I'm sure we'll start seeing wall street shareholders wondering why they're paid so much when 99% of what they do could be automated with 10 lines of python and $50/m of openai calls. No... The best and brightest won't be going anywhere. They'll all probably end up making more money if anything.
The best and brightest are making over 400k. These people will absolutely leave if you cap their salaries. You see it all the time with skilled people leaving European countries to work for US companies willing to pay them significantly more. This is just another stupid ass populist idea reddit has circlejerked itself into thinking is good You’re telling on yourself when I say best and brightest and the first thing you think of is CEO’s.
Lol. It depends on the industry, but the best and brightest may not be billionaires but they are absolutely worth a lot of money. They will always move to the highest payer. And a lot of them start their own businesses too.
lol, you people truly deserve to be exploited. Like we didn't bail out all those "smart people" not so long ago socializing their losses after they filled their pockets.
I don’t trust government suits setting up arbitrary salary caps for various markets, and I am sure they will not act in good faith, just like Xi is not.
As I said, you people just deserve to be robbed... you can read more here: https://www.bnnbloomberg.ca/china-funds-weigh-415-000-pay-cap-in-common-prosperity-drive-1.2058399 It says they clamp down on pay and bonuses given while mutual funds lost 1.9 trillion Yuan over the last two years.
Cool, still dumb.
If we're talking about finance, there is no inherent genius in compound interest, fees to move your money, and insider trading. Let em walk. There is always another generation of cut throats to market insurance scans to the senile. Let them jump.
That’s right - It’s all about “who you know” in these industries, usually connected through university clubs or programs.
While I despise the ccp, they get some things right.
Agree. We need to be more like China. Too much freedom here. Great comment, comrade.
Black market mob scene boutta pop off. These greedy fellas won't be denied.
Many new 400k positions suddenly opened. Hey job creation though. Seriously, I think they are gonna up the antee on nepotism, unless there are some loopholes in place on purpose for the rich fucks
steer telephone brave poor caption sleep shocking carpenter decide skirt
Making money is great motivator. If Xi want to cap wages then he himself should set example by cutting back his income and that include any from under the rug.
I’m not sure if this even matters tbh. As it’s not uncommon in China for people from poor, middle and rich backgrounds to avoid fully reporting their income. A perk of Chinas undeveloped tax system .
Under reporting a few thousand usd here and there is one thing. Get suspicious when millions go missing.
[удалено]
I’m pretty sure it’s not unnoticed. It’s tolerated.
It’s all transparent though since nothing is encrypted over there. Just using WeChat will enable them to know everything about your spending and cash isn’t really a thing there.
Guan xi?
A good, fair, and just society shouldn’t have billionaires
Does this apply to owner draws or only to employee wages?
I mean we get to see real time if this helps bring about common prosperity or if it stifles industrialism.
Companies will always adapt. Now they'll hire the same person for three $400k positions they'll hold simultaneously instead of one $1.2m position, they'll defer pay, or they'll pay in-kind, they'll offer options at advantaged rates, they'll create shell companies and pay through those, they'll create trusts in the person's name, they'll pay in foreign currencies or .... the point is that this doesn't actually solve a problem, but it'll be interesting to see how it plays out.
Great....another exodus of Chinese and money coming our way. So much for getting inflation under control. I better bone up on my Canadian immigration law and become a consultant. :D
Huh, actually goated. I’m usually not pro CCP but how is limiting executive pay a bad thing? Would you rather they receive US CEO levels of pay while workers get peanuts instead? Main thing here is where the excess pay goes to; ideally workers or other stakeholders but it might get grifted if corruption isn’t dealt with.
"but how is limiting executive pay a bad thing?" Very few people make enough money to be affected by this, so the potential return to "workers" will be very limited. However a lot of the people who earn this much money have specialized knowledge or skillsets that can be hard to replace, and by capping their pay you're just gonna piss those people off and make them more likely to go somewhere that they won't get caps put on the amount of money they can make
Very few people make enough for this to have an effect? In China?? Hello? You're not serious right? Besides the fact the majority of taxes comes from the upper ranks. Do you think they did this with 0 research and foresight?
Usually when you move to another country, it’s because you have an in demand skill. I don’t think being a finance bro qualifies. This idea that everyone is just going to up and move to another country if we try and reign in the excesses of the rich is laughably ridiculous. It’s like when people complain the doctors will leave if we have universal health care. Ludicrous.
It depends, and it DOES happen if you push it too far. France tried really hard, and yeah, basically nearly all their billionaires and a solid chunk of their millionaires just left.
I don’t really think France is hurting that much because some millionaires left. But the more important point is that they were able to go places because other countries don’t do the same thing. If all western countries would pass similar anti-wealthy tax laws than it wouldn’t be an issue.
how to braindrain your country 101
Brain drain for ppl making over 400k US dollars? The engineers and scientists in China arent making anywhere near that. They don't even make that in the US. You people are delusional
The drain would be of people more akin to Elon Musk than the next Titan or something. Including people who run afoul/have this used as a excuse who are no longer contributing to the system.
The Jim Keller level ones definitely do
3 mill RMB is a lot, it's not the same conversion and 400k usd. Heck even 400k is a lot of money. And these are financiers, bankers, they are not that productive in a society.
With a country as corrupt as China this will only lead to more corruption as the rich find ways to continue exploiting the system. And Xi will gleefully take advantage of said corruption by selectively purging enemies for participating in said corruption. This is not speculation, this is Chinese history, like all things it has happened before and will happen again.
Yeah… totally “capping” the elites in China. In realty they ain’t gonna do shit. Typical CCP
You... DO know that the CCP REGULARLY disappears "elites" who don't toe the party line...right?? Like A LOT.
Seriously, they disappeared Jack Ma for a bit…
Jack who?
I like FRENCH fries A LOT
It’s not like the US. They actually do do shit to billionaires who aren’t aligned with the party
Sounds good in theory (to a degree), but this realistically means nothing for the people that are the real problem I.e. the truely corrupt who make their huge profits indirectly by illegal means. This will mostly hurt the high income earning regular joe who abides by the law.
Yea... them "regular joe's" that make 400k+...
Sounds like a great recruiting strategy for us and time to open up some new visa spots for those with high income jobs.
Look up Chinese banking laws. It’s very hard to get money out of China. Even foreign professional athletes struggle to bring home a lot of what they earned. Sure we can open up visas spots for them… but they’re not bringing their fortune with them. And how much are they really worth without it?
Hell no. I no way does this country need a bunch of corrupt Chinese billionaires moving here. We have way too many rich assholes in the US as it is, we absolutely do not want *more*
The idea that all Chinese billionaires are corrupt is an unfair generalization. Many successful individuals from China have achieved their wealth through innovation and hard work. We should instead focus on welcoming diverse talents can contribute positively to the economy and society regardless of nationality.
It's not that all Chinese billionaires are corrupt, it's that *all billionaires* are corrupt. They aren't any worse than our billionaires, but our billionaires are scumbags who are making the country way worse, so it would be a disaster to take in even more of them
But why are you focusing on billionaires? the cap is talking about 400k. That's not only billionaires getting affected.
Name one that you know isn't corrupt.
Why would we want Chinese billionaires???? Like you know that there's no engineers or researchers or like. Any actually smart or productive people making that much money, right?
That's incorrect. Many billionaires are tech entrepreneurs and have engineering backgrounds. Also, despite what people say about the wealthy not paying their taxes, the top 1% pays about 45% of all income taxes. Oh, and most people making $400k/year aren't billionaires.
Cool which tech entrepreneur are you talking about???? Also you read the part about how this is in the finance industry specifically right??