China to boost wages, cuts taxes to stimulate economy

From BloggingStocks:

There's perhaps no more-telling policy implementation difference between a democracy and a one-party state than a plan expected to be announced by China soon.

China is shortly expected to implement both wage increases and tax cuts to promote consumer spending and economic growth.

The National Development and Reform Commission is considering the measure, which would affect about 6.5% of China's employees. The policy will help keep the nation's economy growing at an adequate rate, so says economist David H. Wang.

"In a classic development trend, China is incorporating more and more people from the countryside into its cities, and therefore needs a high rate of growth, just to absorb these additional workers and maintain social stability. That means a GDP growth rate of a least 6-7%," Wang said....MORE