Subject: CND (US), Mar 25, 1991

From: Zuofeng Li <[email-masked]>
Date: Mon, 25 Mar 91 21:57:08 CST

*  *  *   C H I N A    N E W S    D I G E S T   *  *  *

                             Mar 25, 1991

        +-+-+-+- ( China News Digest,  US Section Service) -+-+-+-+

         - - - - - - T a b l e   o f   C o n t e n t s - - - - - -
No. Subjects                                                    # of Lines
1. Conflicting Views: the "People Power/Toycott Project"...............190
2. CND Q&A COLUMN ON VISA/JOB/LEGAL MATTERS (No. 48)...................170

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1. Conflicting Views: the "People Power/Toycott Project"...............190
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Editor's Note: Views expressed in the following are edited based on messages
	       collected from the USENET newsgroup Soc.Culture.China (SCC).
               They do not necessarily represent those of CND. CND reserves
               the right to refuse publication of letters from readers.

============================================================================
		     *  *  *  The Beginning  *  *  *
============================================================================
Editor: On Mar. 19 and 21, messages from Mimi Lin ([email-masked])
        were broadcast in SCC asking attendance to the "People Power/Toycott
        Project." Following is an excerpt from Ms. Lin's message as well as a
	report on this project by the U.S. media.

From: [email-masked] (Mimi Lin)
Date: Thursday, Mar 21, 1991

                         TOYCOTT 1991

WHAT:  Last year, during holiday season, organizations for Chinese Democracy,
       Tibetan human rights groups, and the AFL-CIO joined forces in a
       nationwide campaign to launch a boycott of toys Made In China.  In
       1991, these organizations are continuing this "Toycott" to protest
       continuing human rights abuses in the People's Republic of China.

WHY:   This boycott is a symbolic message to the Chinese government:  The
       American people will not give American children gifts produced under an
       oppressive dictatorship. We protest China's forced labor camps, child
       labor exploitation, and China's continued imprisonment of political and
       religious prisoners.

  --  --  --
>From: Huijie Chen, <[email-masked]>
Source: PR NEWSWIRE, Friday, Mar 22, 1991

CONSUMER BOYCOTT OF TOYS MADE IN CHINA URGED DURING EASTER SEASON

As American Christians celebrate Easter this year, scores of Chinese
Catholics in the People's Republic of China will shiver in forced labor,
whisper prayers in solitary confinement and be forced to criticize their
faith in Communist "Study Camps."  In the People's Republic of China,
recognizing the Pope as the head of the Catholic Church is a counter-
revolutionary crime.  Catholics who defy the Communists and recognize the
Pope suffer intense persecution.  Recent reports from The Asian Center for
the Progress of Peoples in Hong Kong, reveal that persecution of Catholics
and Christians has dramatically escalated since the Tiananmen Square
Massacre of June 4, 1989.

Concerned citizens will be leafletting consumers at toy stores on Saturday,
March 23, the weekend before Easter, urging them not to purchase China's
largest single export: toys.

The People Power "toycott" campaign urges consumers to boycott toys made in
China as a protest of China's use of child and forced labor along with its
continued human rights abuses.

The informational leafletting will take place between 11 a.m and 1 p.m. at
two Toys R Us locations:  130 E. El Camino in Sunnydale, Calif., and at the
Serramonte Mall in Daily City, Calif.

"The future of our world belongs to our children," said John Friedland of
the U.S. Tibet Committee, "and we will not give our children toys produced by
a brutal Communist dictatorship which rejects the very concept of basic human
rights."

Groups endorsing the People Power campaign include: Frontlash, the youth
support groups of the AFL-CIO, Democracy in China, U.S. Tibet Committee,
American Chinese Human Rights Advocates, Chinese Alliance for Democracy,
Federation for a Democratic China, Human Rights in China, Independent
Federation of Chinese Students and Scholars, International Campaign for
Tibet, International Committee of Lawyers for Tibet, Democracy in China
Fund, Support Democracy in China, Tibetan Rights Campaign and Huminatas.

============================================================================
		*  *  *  The Opposing Voices  *  *  *
============================================================================
Editor: Shortly after the report of the "Toycott Project" appeared in SCC, a
	number of netters wrote to voice their opinions and concerns to the
	project. Following are excerpts of their messages.

From: [email-masked] (Jing)
Date: Friday, Mar 22, 1991

I do not agree with such a method. You can justify such a method only if you
take the financial consequences together with the people in China, who are
going to suffer from any economic sanction.

How the people of China would view upon you? They would think that you are
willing to using them as sacrifices for your political campaign. By doing so,
you are actually discredit yourself from the people. You are confirming what
had become a thousand year old wisdom: whoever becomes emperor, the people
are going to suffer.

  -- -- --
From: [email-masked] (Xiang-Min Wang)
Date: Friday, Mar 22, 1991

Make a trouble for the government through the economic means ? And take
advantage of it ? Ahhh..., that is the traditional tactics. Personally, I
think it was, is, will be a bad tactics. There are ALWAYS unresolved issues
on this earth. The question is do we always try to solve these endless
issues by disrupting the economic development? In the other word, is it the
better idea that we (everyone) need living better and better lifes WHILE
trying to solve the issues? Look at the recent history of USA. The people
living in USA never try to disrupt their ecomomic development in order to
resolve problems.  And they DID solve some important issues.

A human right issue? Yes, it is an important issue. But you are not
justified to disrupt the economic order by it. A political prisoner issue?
Yes, it is an important issue. But you are not justified to disrupt the
economic order by it. Democracy? Yes, it is an important issue. But you are
not justified to disrupt the economic order by it.

  -- -- --
From: [email-masked] (shiquan liao)
Date: Sunday, Mar 24, 1991

I don't think boycotting toys is a good idea to promote democracy in China.
Any economic sanction will not hurt the guys on the top, it only hurts the
working people. I don't know how our people in China feel about the economic
situation in China. How to achieve a demorcratic system in China is a
complicate question. Simply rejecting any thing from China is not a rational
thought.

  -- -- --
From: [email-masked] (Joseph C Wang)
Date: Sunday, Mar 24, 1991

Such boycotts may very, very easily be misinterpreted by the American public
as advocating a halt to all trade with China. This would have devastating
effects on the Chinese economy and on the democracy movement.

============================================================================
		    *  *  *  On the Other Hand  *  *  *
============================================================================
Editor: The following message was posted to SCC in reply to criticisms
        raised at the "Toycott Project."

From: [email-masked] (Mimi Lin)
Date: Saturday, Mar 23, 1991

Chinese people ARE suffering but NOT BECAUSE overseas human rights activists'
toycott.  I don't pretend to observe them all, but I would list following
factors why Chinese economy is in bad shape after June 1989.

For China's domestic economy which is by far most important to the lives of
Chinese people, 3 reasons:

1. Reforms stopped on state enterprises. (Do I need to elaborate?)
2. Consumer spending on durable goods (bikes, TVs, etc.) were drastically
   down: people save money anticipating unpredictable future after 6/4.
3. Crack down on private businesses without strong links to the gov.

For Tourism:

4. 6/4 killings become worst advertisements for potential visitors. Tourism
   has been down over 50%, costing China billions of dollars, and thousands
   of jobs.

For Export Economy (toys included):

5. 6/4 killings and subsequent political repression turns China into a
   very unattractive place to world investors, while the united Western
   Europe and an emerging free Eastern Europe draw foreign investment.
   Little investment in China means few jobs.
6. Because export economy is incorporated into the capitalist world
   economy, it's vulnerable to the current economic recession in the
   West since mid-1990.

It's clear that the first five reasons are all caused by the policies of the
Chinese government. The last reason also explains why China's export economy
including toys factories are slowing down at the time when the whole world
economy is in recession.

Both sides of the "food vs freedom" debate ASSUME unrealistically big
effects on Chinese economy from toycotts. By doing so, both sides CONFUSE
isssues. The anti-toycott side with genuine and earthy love for China
misplaces their blame, which should be on the Chinese government. The
toycott side with honorable and admirable devotion to promoting human rights
in China misplaces their goal, which should be on educating the American
public about human rights violation issues in China, rather than imposing
economic pressures on the Chinese government.

Toycott is a SYMBOLIC statement to raise issues to the American public. The
"food vs freedom" debate is largely unnecessary.

======================================================================
		      *  *  *  The Ending  *  *  *
======================================================================

Editor: According to one report in SCC from [email-masked], the project
	didn't go well. The netter reported going to the Toys'R'Us store
	where protest was to take place at 1:30 pm, half an hour before the
	finishing time as reported by Mimi Lin, and saw only two people
	at the scene distributing leaflets.

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2. CND Q&A COLUMN ON VISA/JOB/LEGAL MATTERS (No. 48)..................170
*** CND Q&A No.43 -- No.47 will be posted to readers in future issues ***
-------------------------------------------------------------------------
>From: CND Q&A Editor Bo Xiong <[email-masked]>
Date: Sun, 24 Mar 91

NOTE: All discussions on this column are for readers' information only, one
      should consult his/her lawyer or proper professionals before handling
      his/her own visa/job/legal matters.

CND-US edited a comprehensive US Tax Info Series for PRCers in March, 1990,
please contact [email-masked] / [email-masked] for the series.
Additional information may be found in CND Q&A No.27-28 and No.48-49.

I. Tax Forms 1040A/1040NR and EIC
---------------------------------
Q: From [email-masked] Mon Feb  4 22:02:41 1991

   1) If someone claims exemption per Sino-US Tax Treaty provision, and he/
   she makes more than $5,000, does he/she pay Federal Tax for the amount
   beyond $5,000?  2) if someone filed 1040A before (based on information
   from a 800- number; many people received contradictory answers on this,
   by the way), and it appears that he/she may be better off by following the
   Tax Treaty, can he/she use 1040NR now, assuming he/she will not pay
   anything by following the Treaty?  This is especially important when a
   person gets a job but before getting a PR.  3) someone filed 1040A and
   actually gets refund from Earned Income Credit because he/she has a child,
   is he/she going to have any problem later on? Can he/she starts to use
   1040NR now?

A: 1) If he/she cites Article 20 (C) of the tax treaty, he/she has to pay tax
   on the amount exceeding $5,000 + applicable exemptions (usually $2,050 for
   1990).
   2) Yes, he/she may switch to 1040NR in order to take the advantage of the
   Sino-US Tax Treaty as long as the person is still on J-1/F-1 status and
   HAD NOT received any EIC REFUNDS from IRS (i.e., actually got paid from
   IRS, instead of paying any net tax). See CND Q&A No.27 item I, or call US
   IRS at 1-800-829-1014 for further info.
   3) No, it will not be a problem later on if the EIC only helped you pay
   less tax instaed of getting paid from IRS.  See above 2) for using 1040NR.
   See 1040A/1040 instructions for details about EIC.

II. Any "Tricks" for Chinese Students to File US Tax Return?
------------------------------------------------------------
Some Ideas: From [email-masked]   Tue Feb  5 11:48:13 1991

   In CND Q&A, I have seen a lot of Chinese keep asking the Sino-USA Tax
   Treaty about tax exemptions.  Here I would like to point out that, for
   most of us, especially those having spouse and/or child(ren) live with
   them in the USA, that treaty worths nothing.  As long as you have been
   here for more than 2 years, or your non-student spounse has been here for
   more than six months last year, you should file 1040 or 1040A or 1040EZ
   as a residence alien.  If you are single, you are allowed to get $3250
   un-itemized deduction plus $2050 exemption, totaling $5300 (greater than
   $5000 exemption from the treaty);  If you have spounse and/or child(ren),
   you can file 1040's as married file jointly, and entitle of $5350
   un-itemized deduction, plus $2050 exemption for EACH ONE OF YOUR FAMILY.
   For example, if you couple have one child, you can get $5350 deduction
   plus $2050*3=$6150 exemption, totaling $$11,500.  Moreover, if your annual
   income is lower than $18,000, and your child has been here for more than
   6 month last year, you can ask for some amount of "Earned Income Credit".
   If your last year's income is between $6,*** to $11,***, the eared income
   credit is $953 (highest).  Last year I got a $923 check from IRS.
   Conclusion: Most Chinese should forget that treaty. Please refer to the tax
   guides for 1040, 1040A, or 1040EZ.

A: Here are some points that one needs to consider seriously and carefully
   before filing US tax return per the reader's suggestion:

1. If you are a SINGLE and if you file 1040NR, you can get $5000 exemption
   PLUS the additional $2050 exemption allowed in the 1040NR, that'll be MORE
   than what you can deducte from 1040EZ and 1040A or 1040.  In addition, you
   don't need to pay tax on the interest income paid by your bank if you file
   1040NR.

2. If You are eligible to cite Article 19 or Article 20 (b) of the Sino-US
   Tax Treaty, you are exempted from federal tax for upto three years in the
   aggregate if you are an individual specified in Article 19, and you pay no
   tax for as long as you are a student, no matter how much you are paid.

3. If you can file 1040A/1040 (see item III-8) and have several dependents
   (wife, kids, parents) and they all have SS# (not necessarily live with you
   all the time), you might be able to pay less tax.  See tax form 1040A or
   1040 instructions.

4. If you get money back from US IRS by using 1040** other than 1040NR
   because of low income, you may have trouble when you apply for PR since
   you have been PUBLIC CHARGE in this country, see China Spring July 1990 --
   Jan. 1991 for details (CS phone #: 718-429-6777), and see above item I.

5. Finally, everyone who has income in the US must file US tax return even if
   you are fully exempted from any taxes, i.e., one has to tell US IRS why
   he/she does not pay taxes by filing 1040NR.	In some states, public/state
   universities issue a zero income W-2 to PRC TA's/RA's/Visiting Scholars,
   so they might not need to file any tax return.  And, one has to take care
   of his/her state/local tax matters since many ststes do not honor Sino-US
   Tax Treaty.

III. A Comprehensive Tax Scenario
---------------------------------
Q: From [email-masked] Mon Feb 11 12:45:57 1991

Jan. 1990 - Dec. 1990 is Sarah second year in the U.S., she is on F1 status.
During this time, she works half year on pre-completion practical training
and half year on post-completion practical training. The company she works
for is a U.S. owned computer corporation. She got married in June 1990, her
husband is on a H1 status. Sarah bought a computer for her work and study
costing approximately 7,000$ in March 1990. Together, they started mortgaging
a small house by Oct.1990.  (Brief answers following each questions - editor)

1. Sarah can choose to file 1040NR form separately from her husband who choose
   to file 1040. Or is she required to file together either using 1040NR or
   1040 ?
A: From the context of your questions, it's assumed that Sarah is a PRC
   citizen.  Based on this asumption, they have to file 1040A/1040 IF they
   choose file jointly, otherwise, thye may file 1040NR and 1040 separately.

2. If Sarah file using 1040NR form, she can still use the 5,000 exemption
   on the Sino-US Tax treaty.
A: She must file 1040NR to cite the tax treaty.

3. Other than item 2, Can Sarah deduct parts or full cost of her computer as
   continuing education expense? if parts, can she deducts let's say 1/2 or
   3/4?
A: In form 1040NR, there are some stringent restrictions on the deduction of
   educational expenses (see CND-US Tax Packages for details), see US IRS Pub.
   508 for how to compute the ductable amount on the educational expenses.

4. Can her husband deduct the full interest expense of the morgage on his
   tax return since Sarah can not deduct on it.
A: Yes, if he files 1040A/1040, see form 1040A/1040 instructions for details.

5. Assuming Sarah was single (instead of married), can she still deduct the
   computer as an continuing education cost other than the 5000 exemption
   even if she is no longer enrolled but working on the practical training
   status?
A: See above 3 for the deduction.  She is eligible for the $5,000 exemption
   if she is on F-1 status during the training.

6. If both Sarah and her husband have tax refund from the year 1989, do they
   have to report them as income in 1990.
A: Yes, if the refunds came from their local/state tax authority.

7. If the case is Sarah is not on practical training status, but working as
   student with off-campus job, how do questions 1,2,3,4,5 and 6 applies?
A: Income NOT related to her education/training is fully taxable.  The rest
   of the above 1-6 still applies.

8. By the income tax return Jan.1-Dec.31,1991, it is Sarah's third year in
   the U.S. on F1 status, Can she elect to use the resident form 1040 then?
   Assuming she stayed in U.S. two full years without leaving.
A: Yes, she can, see the cover page of 1040NR instruction for details.

9. Assuming that Sarah changed to H1 status instead in the middle of the
   year 1990, can she still choose to use the 1040NR form? half of the year
   she was a F1 practical trainee and half as H1 but working for the same
   company, how can she deduct the 5,000 from her gross income? Can she
   deduct 1/4 of the computer cost as continuing ed expense ? Let assume
   and annual income of 26k for Sarah as practical trainee, how do we
   deduct the 5000 exemption ?
A: See CND Q&A No.27 item I for details.

10. How about those hushand and wife in F1 and F2, both working. Do they have
   to file separately (1040NR) or jointly? can they both deduct 5000 a exemp-
   tion? - if the F2 is working off-campus and also a student.
A: PRCers cannot file 1040NR jointly. F2ers cannot claim exemption of their
   off-campus income, but can cite Sino-US Tax Treaty to deduct their
   on-campus income if they are alos student.

***  Send your question to  [email-masked]
***  Contact [email-masked] for the back issues of CND-US

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