Keywords: Obama skirts tax hikes as US edges 'fiscal cliff', Protests spark following death of Indian rape victim, Private couriers may to shoulder 1b yuan "double tax" for China post expansion

Obama skirts tax hikes as US edges 'fiscal cliff'

US President Barack Obama called on US lawmakers Saturday to address the nation's "fiscal cliff" by the end of this year without raising taxes on the middle class next year.

There is still no sign of an agreement between House Republicans and Obama on how to avoid the looming fiscal cliff, or predicted US recession caused by automatic tax increases and spending cuts that would go into effect on January 1, 2013.

Xinhua published an article on Saturday, saying that "Failure to reach a deal could mean the loss of nearly 300,000 federal jobs according to a George Mason University study."

The report explained a family earning $50,000 (311,785 yuan) to $75,000 (467,677 yuan) a year could see tax hikes of $2,400 next year; while a Tax Policy Center study found that nearly 90 percent of households would be impacted if a deal is not reached.

Going over the fiscal cliff would bring the economic recovery to a halt and trigger another recession, according to Scott Nystrom, associate economist at Regional Economic Models Inc.

"Whether or not the president hammers out a deal with lawmakers, fear of the fiscal cliff has already damaged the world's largest economy, as it continues to struggle toward recovery from the recession that ended in 2009," Nystrom told Xinhua.  

China News Service said on Sunday in a report that the fiscal cliff has not only cast a shadow on market investment and economic growth but shaken consumer confidence.

The report held that the possibility of reaching an important agreement between the president and the House Republicans at one step is slim. A temporary or a simple agreement would be a more possible option.

However, the report also held that despite Washington failing to reach an agreement, the economic slump will remain under control before New Year's Day, as the effects of spending cuts and tax increases will not be felt immediately.

China Business News held that world's rating agencies will possibly downgrade the US economy if it fails to address the problem, which will have a resounding impact on the global financial market.

Phoenix Television commentator Ruan Cishan said on Saturday that the US GDP will reduce by at least 4 percentages if the nation fails to find solutions before arriving at the financial cliff.

"A decline in GDP growth will also mean a reduction in China's exports to the US, as it will cut overseas investment because of the financial crisis," said Ruan.

Protests spark following death of Indian rape victim

Indians demonstrated across the nation after a 23-year-old gang rape victim died from sustained injuries on Saturday, provoking new debate over violence against women and forcing the Indian government to take notice.

The unnamed medical student died early Saturday in a hospital in Singapore after she was gang raped in a moving bus on December 16 in New Delhi. Her death sparked criticism across India over the nation's lax attitudes toward violence and the lack of protection for women from violent sex crimes.

Nanfang Daily commented on Sunday that the Indian government's lenient punishment breeds courage among rapists.

The brutalized university student triggered appeals from the middle class for stronger protection of women and calls to replace the maximum punishment of life imprisonment with the death penalty.

"Victims of rape are usually from villages or city slums, and unfortunately their words do not carry as much weight in society. But hopefully this case will be different, as the government will probably pay more attention to protest from the middle class," read the article.

The widespread outrage is also a show of Indians' dissatisfaction with the government's reluctance to solve the issue. Indian Prime Minister Manmohan Singh's promise to make India safer for women on December 24, eight days after the incident happened, also aroused anger among the public, the Nanfang Daily held.

"India should carry out law reforms that criminalize all forms of sexual violence， while the nation's top leaders should underscore the importance for upholding those laws," said a sina.com.cn report published Sunday.

The article urged India to address other problems such as sexual harassment, the practice of child brides and domestic violence.
 
"As a newly emerging economy and democratic nation, if India cannot protect half of its population from violence, it will never live up to its potential," the article concluded.

Private couriers may to shoulder 1b yuan "double tax" for China post expansion

China's privately-owned courier services may have to pay out an estimated 1 billion yuan ($0.16 billion) in subsidies to finance postal service improvements in China's central and western and rural areas, according to an official draft released recently for public opinions, China Business News reported.

The draft, released by the State Post Bureau and Ministry of Finance, said the government would require privately-owned delivery agencies with over 20 employees or earning at least 2 million yuan per year to charge between 0.1 to 2 yuan extra per delivery, China Business News reported.

The proposed surcharge could generate at least 1 billion yuan, a large portion of which would go to fund China Post, a State-owned company which generates 20 billion yuan a year in profits, according to the report.

Chinese media called the increase a form of "double taxation" that will eventually affect consumers.

The Guangzhou-based Yangcheng Evening News held in a report on Saturday that postal service in China's central, western areas and rural areas should be run and paid for by the government.

"Even if the huge profit of the China Post is not enough support the service, the government should consider offering subsidies," said the paper.

Similarly, China Nation Radio commented on Friday the draft hits delivery companies twice, as the government has already levied taxes before charged for the foundation by quoting Xu Yong, chief consultant of eoroo.com, a business-to-business platform for delivery service.

"The charge is unfair and could cripple industry growth," said Xu.

"Consumers can still submit their comments on the draft, which is still under the opinion-soliciting period," said Xu, adding that delivery companies will likely pass on the surcharge directly to consumers.
 
Similarly, the Beijing News urged that China needs to clean up its various non-tax revenues by setting up a series of funds, such as for power grid and highway construction.

"There is a pressing need for a model to support development of infrastructure and equalization of public services based in government finance rather than funds," said the article.

The Qingdao-based Bandao Metropolis News urged the State-run post companies, for example China Post, to publish and itemize their profits, expenditures and deficit before asking privately-owned delivery companies to subside such expansions.