That's crazy.  That's like taxing SUV's, which are a lifestyle choice 
and very important to my
self-image.  Where would I put my golf clubs?  How would I pull my boat?

I think I can confidently say the Chinese are making a huge mistake 
here.  The US has proven than it's
FEWER taxes that produce a strong economy.

Can I borrow a thousand dollars?  I need to buy ammo for my gun.

-Merika

Keith Addison wrote:

>http://www.nytimes.com/2006/03/23/business/worldbusiness/23yuan.html?_ 
>r=1&oref=slogin
>- New York Times
>China Raises Taxes to Curb Use of Energy and Timber
>
>By KEITH BRADSHER
>
>Published: March 23, 2006
>
>HONG KONG, Thursday, March 23 - The Chinese government announced 
>plans on Wednesday to increase existing taxes and impose new ones on 
>April 1 for everything from gas-guzzling vehicles to chopsticks in a 
>move to rein in rising use of energy and timber and the widening gap 
>between rich and poor.
>
>Greg Baker/Associated Press
>
>China will assess a 5 percent tax on disposable wooden chopsticks in 
>one of many conservation efforts.
>
>New or higher taxes will fall on vehicles with engines larger than 
>two liters, disposable wooden chopsticks, planks for wood floors, 
>luxury watches, golf clubs, golf balls and certain oil products.
>
>China's finance ministry disclosed the higher taxes Tuesday night in 
>a statement that was reported Wednesday morning by the official New 
>China News Agency. The statement offered another sign that some 
>senior Chinese officials may be having second thoughts about the 
>rapid growth of privately owned family vehicles, whose sales rose to 
>3.1 million last year from just 640,000 in 2000.
>
>"In recent years, car ownership in China has grown rapidly and fuel 
>consumption has risen considerably, and this highlights the conflict 
>between supply and demand of oil resources," the statement said. "At 
>the same time, pollution caused by motor cars has become the main 
>source of pollution in big and medium-size cities."
>
>The finance ministry is imposing a 5 percent tax on chopsticks and 
>floor planks, citing a need to conserve timber. Environmentalists 
>around the world have been warning that China's voracious demand for 
>wood was contributing to the clear-cutting of many forests, 
>especially in Southeast Asia.
>
>The production of disposable wooden chopsticks consumes two million 
>cubic meters (70.6 million cubic feet) of timber each year, the 
>ministry said. Plastic chopsticks, which can be washed and reused, 
>will not be subject to the new tax.
>
>A new tax of 10 percent on yachts, golf clubs and golf balls, and a 
>20 percent tax on luxury watches, is squarely aimed at China's 
>emerging elite of wealthy industrialists and well-connected Communist 
>officials.
>
>China's yacht market is still in its infancy, as military 
>restrictions on ocean traffic and commercial restrictions on river 
>traffic have limited yachts to lakes - although a few entrepreneurs 
>have been able to get around the rules to cruise on the Yangtze River 
>near Shanghai.
>
>Chinese officials have periodically assailed golf, especially when 
>villages and farms are demolished with little compensation to make 
>way for new golf courses.
>
>The biggest commercial effect of the new taxes is likely to fall on 
>sport utility vehicles and luxury sedans. China is reducing its tax 
>on vehicles with engines of 1 to 1.5 liters to 3 percent from 5 
>percent, while leaving the rate unchanged for slightly more powerful 
>engines. The tax rate will rise to 20 percent, from 8 percent now, 
>for vehicles with engines larger than four liters.
>
>The taxes are likely to affect foreign automakers, especially 
>American manufacturers, more than Chinese companies, which tend to 
>make models with smaller engines.
>
>The big question for automakers is how much of the tax to pass on to 
>consumers, since the tax is collected from the manufacturers. With a 
>week and a half remaining until the new tax takes effect, marketing 
>executives scrambled on Wednesday to assess the impact and no 
>automaker immediately raised prices.
>
>"We are doing the calculations and assessing the impact, and on the 
>other hand watching the actions of our competitors," said Kenneth 
>Hsu, a spokesman for the China operations of Ford Motor, which sell 
>everything from compact cars with 1.6-liter engines to Lincoln 
>Navigator full-size S.U.V.'s with 5.4-liter engines.
>
>Trevor Hale, a DaimlerChrysler spokesman, said the company offered 
>fuel-efficient engines; many Mercedes sedans sold in China have 
>considerably smaller engines than models sold in the United States.
>
>Chinese officials considered and rejected a tax system based on gas 
>mileage instead of engine displacement. That approach would have 
>benefited foreign automakers who possess better technology that 
>permits them to squeeze more power out of the same size engine than 
>purely Chinese manufacturers can.
>
>General Motors China welcomed the new taxes on Thursday but voiced a 
>reservation: "While we believe the new measure will be more 
>environmentally friendly and help lower energy consumption in China, 
>we think it would be more reasonable to base the tax rate on the 
>actual fuel consumption of a vehicle instead of the size of its 
>engine displacement, which is a widely accepted practice worldwide."
>
>Yale Zhang, an analyst in the Shanghai office of CSM Worldwide, a big 
>automotive consulting firm based in the Detroit suburbs, said that 
>Chinese automakers had growing influence in policy debates and that 
>the new rules might lead to a proliferation of vehicles with engines 
>a hundredth of a liter below the thresholds for higher taxes.
>
>Chinese regulators have already imposed stringent fuel-economy 
>regulations that take effect for all vehicles sold after July 1, and 
>have said that they are considering a separate gas-guzzler tax for 
>models that do not comply. The finance ministry's statement on the 
>tax increases on April 1 made no mention of such a gas-guzzler tax, 
>however, and finance ministry officials could not be reached for 
>elaboration.
>
>The finance ministry also announced a modest new tax of a penny (0.1 
>yuan) a liter for aviation fuel and 2 cents (0.2 yuan) a liter for 
>naptha, solvents and lubricants, but said it would not collect the 
>new aviation fuel tax for now and would collect only 30 percent of 
>the new tax on naptha, solvents and lubricants.
>
>Applying taxes on oil products but not collecting them while prices 
>are high could set a precedent for how China handles taxes on 
>gasoline and diesel. Chinese officials have said repeatedly that they 
>would like to raise fuel taxes to encourage conservation, but do not 
>want to act while world oil prices are close to record levels.
>
>On April 1, China will also lower its tax on motorcycles with engines 
>under 250 cubic centimeters to 3 percent from 10 percent, while 
>leaving the tax unchanged at 10 percent for motorcycles with larger 
>engines.
>
>Western manufacturers like Harley-Davidson are trying to break into 
>the Chinese market with powerful bikes, while Chinese manufacturers 
>like Lifan mainly produce less powerful models.
>
>
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>



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