Is a Wealth Tax Xi’s Answer to Fill China’s Empty Coffers?

After last month’s party congress, speculation has been rampant that China will soon tax its rich. Different options have been floated by mainland academics and lawyers, such as an inheritance tax, a wealth tax, or even an exit tax should high-net-worth individuals renounce their citizenship — a system that is not dissimilar to what the US has.

President Xi Jinping’s opening speech at the twice-a-decade party congress got on the nerves of the rich. He vowed to ensure a “well regulated” system of wealth accumulation. “We will protect lawful income, adjust excessive income, and prohibit illicit income,” said Xi. As such, many fear that the president may impose various taxes on the wealthy in the pursuit of “common prosperity,” his signature drive to broaden the middle class and narrow the wealth gap.