Moody's: China's plan to cut personal taxes is credit negative

Poors cold water on stimulus plans

Moody's is out saying that China's plan to cut personal income taxes is credit negative for regional and local governments.

They add that the action will further widen the gap between their spending needs and funding capacity (a credit negative).

Contributions from personal income tax revenue as proportion of RLGS' Western revenue will decline to 3% in 2019 from 5.2% 2017