March 10 (Bloomberg) — China vehicle sales surged 25 percent in February, the first gain in four months, after the government cut taxes on some models, helping the country extend its lead as the world’s largest auto market this year.
BZ
Cutting Taxes Doesn’t Work
Cutting taxes leaves little money left over for all those social programs, you know.
China has to cut taxes… 30 to 60% of their GDP is on bad debt and they need *anything* to try and keep the bubble going… even cutting capital gains taxes. Of course getting the government out of the corrupt banking system would help far more, but then we are repeating that here and *no one* proposes getting the government out of mandating a certain percentage of loans go to those who can’t afford them. It is all about the money.
Huh. Imagine that. Reality intrudes upon China.
BZ