This is CBS. I am the world. I'm John Batchel. I welcome Gordon Chang, my colleague and co-hosts,

and we are immediately concerned with an article in the New York Times that reports the mainland China economy,

struggling with reduced tax revenue. Gordon, what does that mean, reduced tax revenue?

The IRS is in this country, dominates the conversation every springtime. Does that happen in China?

Not really, John. Taxes, I think, form a lot less of the consciousness of the Chinese people.

But as the New York Times reports,

that tax revenue in China last year declined 3.4%. This was revealed by Premier Lee Chong

at the annual meeting of the National People's Congress. And the New York Times also reports

something, I think, almost and maybe even more significant,

and that is China's projected budget deficit this year will be almost 9% of gross domestic product.

Got to remember that China inflates its gross domestic product.

So that 9% number is obviously going to be a lot higher

in reality. We welcome Ann Stevenson Yang, author of the highly recommended Wild Ride, China's

short-lived experiment in capitalism. Anne was at the beginning and she's near to the end of

whatever the experiment said it was going to achieve.

And China's mainland is reminding me of the United States. Taxes have declined. Whatever could

be wrong. Let's see. According to your reporting over these years, property manufacturing

output consumer class, have I missed anything, Ann? Good day to you. Hi, John. So, manufacturing output, consumer class.

Have I missed anything, Ann?

Good day to you.

Hi, John.

So, I mean, I think one of the really interesting portions of this is that the value-added tax, which is a tax on sort of every good that's sold within China is down by 7.9%.

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