Ye Tan: Please Take Off The Emperor'S New Clothes.

China's current implementation

The lifting of the tax threshold is the technical details. In the overall situation, as long as it helps to alleviate the polarization between the rich and the poor, as long as it helps the property pparent system, it is a good system in the tax reform.

At present, the reason why our country has been arguing on the threshold of personal tax is that we can not make breakthroughs in the reform of the fundamental system.

The call for raising the tax threshold has been increasing. Jia Kang, director of the Financial Science Research Institute of the Ministry of finance, has the courage to say that simply raising the tax threshold is a bad idea, because the absolute number of payments is nothing more than robbing the poor and helping the rich.

This is not a new reason.

In June 2009, the research group issued the "basic situation of China's personal income tax", emphasizing the improvement.

The author acknowledges that simply raising the threshold of individual tax can not solve the reverse mechanism of China's personal tax and robbing the poor and helping the rich. The improvement of the tax threshold must be accompanied by a comprehensive reform of the credit system and tax rate. However, after the last two reforms are unable to break the ice, raising the threshold of personal tax, or linking the tax threshold with the CPI, at least proves the sincerity of the government to protect the purchasing power of the low-income class.

Otherwise, it will soon be a joke that the lowest wage earners can get personal income tax.

All along, China's tax collection embodies the essence of wide coverage and multiple levying in low honesty society, that is, how much it receives and how much it receives. The result is that the working class has made the greatest contribution to the personal income tax.

This is confirmed by the Treasury's Research Report.

According to statistics, the average annual wage of urban workers in China was 7479 yuan in 1998 and 24932 yuan in 2007.

In 1998, the number of payroll income taxpayers was 109 million, and in 2007 it increased to 850 million.

In 2005, the proportion of taxpayers who paid more than 250 thousand yuan a year in the national income tax accounted for nearly 5% of the total number of tax paid employees, and the tax paid accounted for about 15% of the total tax on the total income of the workers. In 2007, the 20% (or above) tax rate (that is, the monthly taxable income of more than 5000 yuan) accounted for 4.43% of the total taxpayer's income, but the amount of tax paid was 44.44% of the total tax on workable income.

At present, the personal income tax in China accounts for 45% to 47% of the income tax, while the proportion of wage income in total income is only 1/3. Most of the income is outside the scope of tax payment, which means that the means of adjusting the gap between the rich and the poor by means of personal income tax basically fails.

Moreover, due to the mismatch of capital gains tax, China can enjoy low tax treatment in the capital and money market's profiteering classes.

Individual tax is a gorgeous new emperor's clothing in China's tax revenue, which is beneficial to the people and is beneficial to the gray income class.

As property income is generally opaque, property declaration system has not been released to the whole society. Therefore, personal income tax has become a disguised poll tax. All working people are paid by their units on a monthly salary basis.

Nearly 6 trillion of the gray income outside the unit salary system is not in the range of taxation.

Those employees who monopolize state owned enterprises earn only 2000 yuan a month, and the benefits may be 3000 yuan, let alone the grey income of those who have the right to seek rent.

As long as the deadlock of property declaration is puzzled, individual tax reform will face many obstacles.

China has implemented over 120 thousand yuan of high income earners self filing tax returns, but the effect is not satisfactory. All those who do not want to declare can speak up for themselves. If they fail, they will not work. Ordinary citizens need not rush to be the vanguard of declaring property and paying taxes before officials.

To break the cycle, we must break the tax system attached to the unit structure, establish a credit society, rely on conscious declaration and supervision, punishment mechanism, start with the property declaration system of the officials, and establish the property credit system and rating of all citizens.

Then we will establish family tax system, reduce the level of Taxation, and raise the tax rate of each level.

Raising the tax threshold and cultivating the middle class are important policies during the 12th Five-Year. It is a crucial part of China's tax reform.

Raising the threshold of personal tax is the starting point. The key is to establish a credit system for the whole people, or else replace the other with an emperor's new clothes.