Individual Tax Reform Will Launch &Nbsp Next Year, And Tax Cuts Will Be Substantially Reduced.

In 2011, the personal income tax will be greatly adjusted. Its goal is to reduce the burden on the middle and low income people, and "reduce the grade and adjust the interval" to become the focus of this reform.

According to the economic observation network, it is learned from authoritative channels. Individual income tax There are two kinds of reforms in the near future and in the medium and long term. The medium and long-term plan is a comprehensive and classified income tax reform. The near future plan of individual tax reform will be launched at the right time in 2011. However, due to various technical, institutional and objective reasons, the medium and long-term plan can not be implemented in the short term.

The focus of this plan is not to raise the threshold (cost deduction), but to pay the current tax. tax rate Grade and grade distance. China's personal income tax is a progressive tax rate of 9 grades, which is more complicated in the world. reform Emphasis.

The reduction of gradation can be understood as, for example, the 9 grade tax rate is reduced to 6 grade, and the grade adjustment is mainly to expand the grade interval. The significance of the reform is to raise the minimum tax payable, so that most of the wage earners apply the lowest or two tax rates.

If a person's income is 4000 yuan and the starting point is 2000 yuan, the deduction of the two is equal to the taxable income of the person. At present, the rate of 5% of the taxable income is less than 500 yuan, the tax rate of 500 to 2000 yuan is 10%, and someone pays 200 yuan tax.

If the tax is reduced to 6 grades, the tax rate below 2000 yuan shall be applied to 5% of the tax rate, that is, if the cost deduction is 2000 yuan, the wage income of 4000 yuan will meet the 5% tax rate, that is, 100 yuan tax payable, which is half less than the current system.

By analogy, the level of distance will be further expanded than that of now, so that the income that was in line with the 20% tax rate in the past is likely to be adjusted to 10% tax rate. This is for wages and salaries.

In addition, the current deduction standard of labor remuneration income and property transfer is still 800 yuan, so the reform will raise the threshold of the above two incomes to the same as that of wage earners. This part of the income is generally derived from mental workers, which can also alleviate the burden of middle-income people.

For this reform plan, a finance and tax expert thinks, "individual tax adjustment should not always be on the threshold, but there are still many articles to do to lighten the burden of personal tax".

In the current tax reform, the central government has also called for more regulation of high-income people, but this is controversial. The highest marginal tax rate of China's personal tax is 45%, which is also a high tax rate in the world. If we continue to raise the tax rate, it may cause the rich to evade taxes. It is reported that at present, the views of the parties on the adjustment of the middle and low income groups are more uniform, while the tax adjustment for the high-income people is very different.