Letter to Zhou Enlai et al. Concerning the New Tax System (January 15, 1953)

To Zhou, Deng, Chen, and Bo [1]:  Regarding the new tax system, the Central Committee has not yet discussed it, nor has it issued any instructions to the various central bureaus, sub-bureaus, and provincial and municipal party committees. It was announced in haste, with no prior preparation. This matter appears to have already caused unrest throughout the country—not merely in Shanghai and Beijing. I would like you to study how it should be handled and report back to me.

I only learned of this from reading the newspapers; even after reading them, I did not fully understand it, which is hardly surprising given that Xiang Ming [2] and others also found it difficult to grasp. Specifically, what are the respective advantages and disadvantages of the new tax system compared with the old one? And why has a change in the tax system led to such fluctuations in prices? Please instruct the competent authorities to submit a detailed account on these points.

Mao Zedong January 15, 1953  Printed from the manuscript.

Notes  [1] Zhou refers to Zhou Enlai. Deng refers to Deng Xiaoping, who at the time served as Vice Premier of the State Council. Chen refers to Chen Yun, who at the time was Vice Premier of the State Council and Director of the State Planning Commission. Bo refers to Bo Yibo, who at the time was Deputy Director of the State Council’s Finance and Economic Commission and Minister of Finance.  [2] Xiang Ming was then Second Secretary of the Shandong Sub-Bureau of the CPC Central Committee and Vice Chairman of the Shandong Provincial People’s Government.