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Half in survey don't support inheritance tax

By Zheng Jinran (chinadaily.com.cn)
Updated: 2010-08-23 15:24

Chen Guangbiao, an entrepreneur known for his generosity, handed in a proposal on initiating an inheritance tax on rich people with the tax rate being at least 60%, at this year's two sessions of the National People's Congress and the Chinese People's Political Consultative Conference.

But about half of 11,203 survey respondents did not support initiating the inheritance tax in China, and 34% supported it, China Youth Daily reported on Aug 23. The survey was co-conducted by China Youth Daily and QTICK.

Wang Zhenyao, former director of the Social welfare and Charity department under the Ministry of Civil Affairs, said, “With China’s rapid economic development, the inheritance tax will be listed on the agenda, but it should be initiated at a proper time.” And he said he believed the inheritance tax can protect the rich and their family.

As to when inheritance tax should be collected, the majority (66%) believed the tax should target only rich people, and 56% thought government should prevent individual property from being transferred to foreign countries.

The survey also found that 52% of Chinese thought American entrepreneurs’ generosity had something to do with the heavy inheritance tax, given that many American entrepreneurs such as Bill Gates and Warren Buffett have donated a large part of their wealth.

Wang said it’s impossible for rich people in China to donate half of their property on a single occasion. But he said donating one million yuan ($147,000) every year for billionaires is accepatable.