By Yuliang ZhouThe Washington TimesMay 24, 2018 11:27:30By Yuliah ZhouThe Associated PressMay 24.
2018 11,22:17BY YULANG ZHUANHOU, Associated PressWASHINGTON (AP) Chinese officials warned Saturday that the new tax code that President Donald Trump is moving toward could become a “sickener” for international companies, with the government warning that the rules could be passed on to consumers.
The new tax rules, expected to be unveiled Monday, would increase the tax on imports and raise taxes on companies with annual sales of more than $10 million, potentially leading to higher tariffs.
It also would raise the tax rates on goods and services that can be sold to American consumers, which would increase costs for companies and businesses.
They also could force companies to lay off workers or sell their businesses abroad, making the current rules even more difficult to implement.
China’s National Development and Reform Commission said in a statement that it would make “appropriate measures” to protect the interests of companies, including by working closely with U.S. authorities.
“We are deeply concerned about the changes to the domestic economy, especially those that could hurt the development of foreign-owned companies and their employees,” the statement said.
It said the new rules could result in increased tariffs on imports from the United States, while lowering the value of foreign currency from the Chinese yuan, the world’s second-largest reserve currency.
The Chinese statement did not offer specifics, but it was clear that China would be on notice.
The U.N. body’s chief economist, Jeffrey Sachs, said the Chinese economy is on the verge of a sharp contraction, as the government tries to make a quick buck from the current tax system.
The new tax plan is part of that effort.
Trump has proposed a two-tiered tax system, with rates on high-income earners at the top, and lower rates for middle-income taxpayers, who pay most of the taxes.
Trump’s advisers have said the proposed changes will be similar to the one that is already in place, so that the rich pay the same rate.
The administration says it will not change the tax code.
Trump campaigned on lowering taxes for the middle class and on lowering the U.