The Chinese government announced that they must revise their income tax laws, to account for the huge increase in poor people.  Their experiment with capitalism only created more poor people while a minority of people got rich.

Beginning in September the minimum income level for exemption from paying income tax will be raised, to the equivalent of $540.00 per month.  Currently it is $300.00 per month.  It will affect about 60 million workers.

Also, people making between $540.00 and $700.00 per month will see a decrease in the percentage they must pay; dropped to 3% from the current 5%.

This comes after riots by workers in several regions of China.  They are protesting low wages, no benefits, and they wanted to know where all the wealth was going, because after all these years most workers still aren’t seeing an improvement in their lives.

The Chinese government admits only a small portion of China’s people are benefiting from the U.S. style of doing business.