Opinions Collected by Me During This Trip [1] (February 15–26, 1953) Regarding the Labor Insurance Regulations [2] Tan Zhenlin [3] reported: Several provisions are impractical; for such an important decree, it would be desirable first to solicit opinions from local authorities. As for the circulation tax, Comrade Tan Zhenlin considered it unworkable, whereas the Tianjin Municipal Party Committee deemed it feasible. Concerning the business tax, the Tianjin comrades indicated that a recent supplementary directive from the Central Financial and Economic Commission was unenforceable; they had refrained from implementing it and were currently seeking instructions from higher authorities. With regard to this year’s budgetary revenue, Comrade Guan Wenwei [4] believed that collecting 233 billion yuan in taxes and profits from the nation’s national income of over 600 billion yuan in 1953 would likely be impossible. After I explained that this year’s economic situation would be somewhat better than last year’s and that the budget might therefore be fulfilled, Comrade Tan Zhenlin remarked: State-owned enterprises might exceed their targets slightly, while private enterprises might fall short; the two could offset each other, potentially allowing the overall target to be met. I stated: There are only three possible outcomes for this year’s budget: (1) it may be exceeded; (2) it may be fulfilled; or (3) it may not be fulfilled. We should strive to achieve fulfillment, and even to exceed the target. However, with respect to all industrial and commercial taxes, we ought to follow the principle of taxing according to the amount of capital invested, the scale of business conducted, and the profits earned, rather than resorting to practices that would kill the goose that lays the golden eggs. The slogan “Avoid extremes of fatness or leanness; adopt multiple tiers and grades” is not merely a phrase—it must be put into practice. (Many comrades, however, doubt that it is anything more than just a slogan.)

Printed from Mao Zedong’s manuscript.

Notes [1] These are the opinions gathered by Mao Zedong along the Beijing–Shanghai railway line during his inspection tour from February 15 to 26, 1953. The title was proposed by Mao Zedong. [2] Refers to the “Decision on Certain Amendments to the Labor Insurance Regulations of the People’s Republic of China,” adopted at the 165th meeting of the Government Administration Council on January 2, 1953. This document revised the “Labor Insurance Regulations of the People’s Republic of China,” promulgated by the Government Administration Council on February 26, 1951. [3] Tan Zhenlin was then Vice Chairman of the East China Administrative Committee and concurrently Chairman of the Jiangsu Provincial People’s Government. [4] Guan Wenwei was then Vice Chairman of the Jiangsu Provincial People’s Government.