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    NPC Finance And Economics Committee Intends To Offer Tax Cuts To Help Enterprises Raise Wages.

    2010/6/2 10:11:00 14

    Enterprise

    In May, the finance and Economic Commission of the National People's Congress conducted intensive research on the issue of income distribution structure.

    One of the conclusions of the survey is to reduce the tax burden of competitive industries and make room for employees to increase wages.


    "We will appeal for this proposal, but at present there is no final investigation report submitted in the course of the investigation."

    Wu Xiaoling, member of the Standing Committee of the National People's Congress and vice chairman of the finance and Economic Commission of the National People's Congress, said in an exclusive interview with the first financial daily.


    In fact, apart from the National People's Congress and media reports, recently, the national development and Reform Commission, the Ministry of finance, the Ministry of human resources and social security, the SASAC, the National Federation of trade unions and the National Federation of industry and Commerce have carried out research and adjustment in deepening their income distribution reform within their respective responsibilities.


    Eastern and western three regional research


    In order to find out the distribution of China's national income

    structure

    The research scope of the finance and Economic Commission of the National People's Congress across the three regions of China's East, West and central China involves typical provinces, cities and counties.


    In from May 4th to 9th, the research group of the finance and Economic Commission of the National People's Congress first came to the central province of Jiangxi on the issue of national income distribution and visited Nanchang, Jiujiang and other regions.

    On the 10 day of ~14, the research group headed by Wen Shizhen, vice chairman of the NPC Standing Committee and deputy director of the finance and Economic Commission of the National People's Congress, walked into the eastern coastal province of Fujian.

    From 17 to 20, the research team headed by Wu Xiaoling also went to Anhui province to investigate Wuhu and Fanchang, Hefei and other cities and counties on the issue of national income distribution.

    From 26 to 27, the research group led by Wu Xiaoling went to Gansu in the West and went directly to the city and county for research.


    It is understood that the key research contents of the research team include the present situation of the national income distribution in the region and the basic situation of the income gap, the main measures taken in recent years to increase the income of residents and standardize the order of income distribution, and the policies and suggestions for adjusting the income distribution pattern and narrowing the income gap.


    In addition to holding a symposium with relevant local departments, the research group visited the enterprises, cities and counties to become the focus of the research group.

    The research group not only inspected the state-owned economic units represented by Guodian Jiujiang power plant, but also inspected Quanzhou, a private economy developed in Jiangxi. It not only explored the situation of the whole province in Gansu, but also visited Qinan County, Tianshui Province, to find out the current situation of the national income distribution at the county level and the basic situation of the income gap.


      

    labour

    Declining income share


    In Jiangxi, the Bureau of statistics of the province told the research group that the proportion of Jiangxi residents' income in the distribution of national income has been declining, the proportion of government departments and enterprises has been increasing gradually, and the distribution of income has tended to tilt towards the government and enterprises.


    The same is true throughout the country.

    A set of data released by the National Federation of trade unions showed that the proportion of China's residents' labor remuneration in GDP reached a peak of 56.5% in 1983, and then continued to decline. In 2005, it has dropped to 36.7%, and it has dropped by nearly 20 percentage points in 22 years.


    The 2010 Beijing blue book "Beijing Economic Development Report 2009-2010", compiled by the Beijing Academy of Social Sciences, also shows that in 1999 ~2007, Beijing's economy has maintained an annual growth rate of over 10%, while the proportion of residents' income in total regional income has not increased, but there has been a gradual downward trend.


    During his research in Jiangxi, Wen Shizhen pointed out that the current trade surplus, too much credit and excessive investment growth were still prominent in the current economic operation. The root cause of the "three excuses" lies in the problems of national income distribution, insufficient investment in social undertakings and social security, low income growth of low-income people, high savings rate and investment rate, and low consumption rate.


    In a seminar attended on Monday, Wu Xiaoling also mentioned that the mode of economic growth with low labor costs, high consumption and high pollution is not sustainable in China. After the financial crisis, adjusting the economic structure, national income distribution structure and increasing domestic consumption to the economy has become a consensus in Chinese society.


    Tax incentives

    enterprise

    Raise wages


    After the seminar on Monday, Wu Xiaoling said in an interview with our reporter that some industries are relatively strong in terms of monopoly and relatively high labor wages, while a large number of labor-intensive and fully competitive industries are relatively low wages because of their relatively thin profits and heavy tax burden.


    She told reporters that the finance and Economic Commission of the National People's Congress has just carried out research in this field. One conclusion of the survey is that we should reduce the tax burden on enterprises in the full competition industry and make room for them to raise the labor force price.


    This proposal is also similar to the recent proposals of the Ministry of human resources and social security.

    According to media reports, the Ministry of human resources has suggested that, on the one hand, we should continue to carry out collective bargaining of wages and wages, and on the other hand, explore new ideas including tax incentives and other measures.

    These ideas include the reduction of corporate income tax, value-added tax and business tax to enterprises with difficulties in raising wages, so as to promote the normal growth of staff salaries.


    This shows that the conclusion of a new round of research by relevant departments may change the inherent practice of the government's income distribution control.

    In the past, when considering increasing residents' income, the government often implemented the measures by raising the minimum wage standard and raising the social welfare standard, hoping that the enterprises would benefit the people, but ignored the affordability of the enterprises themselves.

    In general competition areas, the profitability level is usually only 3%~5%.


    The proportion of government departments in national income has increased compared with the declining trend of the proportion of residents in national income.

    The way of "converting taxes to pay" proposed by the Ministry of human resources is able to make some pfer payments on the distribution of national income.

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