What Obama Can Learn From Communist China

They're Communists after all ... Less tax, better growth (China Daily)

Strong fiscal revenue growth has long been deemed as solid evidence of the Chinese economy's resilience as last year's double-digit increase in fiscal revenue clearly shows.

But if China is to boost consumer-led growth by improving income distribution, policymakers must take another examination at the current rise in fiscal revenues.

Yes, more taxes do enable the government to better finance public investment and expand public services. But a bigger tax burden can also undermine the country's endeavor to change its growth model by relying more on domestic spending than on investment and export for growth.

During most of 2009, tax and financial authorities had repeatedly expressed their worries about how to meet the fiscal revenue growth target of 8 percent that was regarded as necessary for budgetary concerns.

As the worst global recession in more than 70 years slowed China's economic growth to 6.1 percent in the first quarter of 2009, the lowest in a decade, the country's fiscal revenue shrank 8.3 percent over the same period last year.

And Obama says ??