4 February 2019
Question: What are Tax Evasion and Tax Fraud?
Chinese graduates struggle to find jobs during slowdown – Pg. 2
– China’s slowing economy and trade tensions with the US have hurt low-wage workers in the export industry. Bu the effects are extending to graduates from top universities
– Beijing Is increasingly concerned. In December, the government introduced policies to help this year’s university graduates find work. It also launched broad policies to stem lay-offs and made employment its top economic priority
– University graduates entering the job market in 2018 have been hit by the US-China trade war as well as stricter controls on financial institutions, which have led to a dearth of capital in their preferred sectors of finance and tech
– The average graduate salary expectation slipped by about 1% $790/mo in 2018
Germany pins hopes on consumers to drive growth – Pg. 3
– According to the latest government forecast, the economy will grow by 1% in 2019 – less than expected, and notably reduced from the 1.5% increase in GDP in 2018
– Private consumption, in contrast, was forecast to rise by 1.3% this year, up from 1% in 2018. That means that private consumption would contribute no less than 0.7% to the overall 1% growth rate – a much higher share than in previous years
– …German economic downturn is not on the horizon – thanks, above all else, to private consumption
– Germany consumers have plenty of reasons to feel confident: unemployment is at a record low, salaries are rising and inflation continues to be relatively subdued
– Purchasing power has been further boosted by a string of initiatives taken by the government of Angela Merkel last year, including pension and welfare increases and a cut to social contributions and taxes
– Germans save about 10% of their disposable income in good times and in bad
– In Germany, the government expects net wages to rise 4.8% this year, leaving plenty of money in the pockets of a workforce that can now look back on a full decade of economic growth
Answer: According to Title 26 of the Internal Revenue Code, “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payments thereof…” is guilty of tax fraud.