A Look At Hong Kong

Demanding Democracy for Hong Kong
Ten years ago on July 1st, 1997, the British surrendered their 150-year colonial rule of Hong Kong and the Communist government of the Peoples Republic of China took over.
Last Sunday, July 1, nearly 70,000 Hong Kong citizens turned out to demonstrate for democracy for their city-state. Hong Kong is now governed by a parliament which is in effect controlled by in the government in Beijing. But H.K. Chief Executive Donald Tsang, sworn in Sunday for a second term in office, pledged to resolve the issue of universal suffrage during his new term. The Chinese President's visit added extra significance to the annual protest march by thousands of pro-democracy activists. Polls show that most citizens of Hong Kong want democracy as soon as possible.
President Hu promised to fully support Hong Kong in promoting democracy although Beijing has ruled out direct elections until at least 2012. Since the hand over in 1997, Beijing has given Hong Kong a high degree of autonomy under a "one country, two systems" formula - but the ruling Communist Party has maintained a tight grip on the pace of democratization.
Aside from the Communist curbs on democracy and their inequitable limits on representative government, Hong Kong's economy is still one the world's freest. For the last eight years, the conservative Heritage Foundation in Washington, DC, has rated it the freest economy in the world. The Cato Institute, the leading libertarian research group, has rated it number one in economic freedom for nine years. And Hong Kong consistently ranks at or near the top of everyone's lists of free-market economics around the globe. And it is the gateway to doing business with the 1.3 billion Chinese investment market.
Hong Kong has low taxes and a simple, predictable tax regime. The top corporate tax rate is just 17.5%. The top personal income tax rate is 15.5%. A personal income tax return is just two pages. Capital gains are tax-free. Double your money on a stock, pocket the full 100%. Sell an investment property for a US$1 million profit, keep it all. There is also no tax on personal dividends or bank interest. There is no VAT or sales tax.
Setting up a new business is simple. Foreigners who invest are not subject to special regulations or requirements. You can register a company in Hong Kong in an afternoon, open a bank account the same day and have the business operating within a week. And the Hong Kong banking system is far more stable than that of mainland China, where nonperforming bank loans and government corruption abound.
Sunday's outpouring of 70,000 marchers is a strong reconfirmation of Hong Kong's demand for freedom - and it can only enhance this city-state as the financial leader of Asia.