Structural Tax Increase And Structural Tax Reduction

About China

NetEase Finance: GDP grew by 10% in 2010, fiscal and taxation grew by 21%, and tax revenue accounted for

Jia Kang: in a sense, it confirms the first half of reform and opening up, letting fish grow, letting water yield, and cultivating financial resources.

Such a big trend is correct. After raising the financial resources to a certain conversion point, a concrete manifestation is that after 1995, the market economy goal is clear, the tax and tax system's tax sharing and classification framework is constituted, and the operation is becoming more and more normal. The fish farming has entered the harvest period. After entering the harvest period, the fiscal revenue and the economic development process have appeared the recovery growth of GDP.

From now on, such a process can be understood in the middle of the historical change process. It is not a very abnormal problem. It is a situation in the course of China's development that has not yet reached the pition state. Of course, we should further explore what circumstances should make it relatively stable.

From the international point of view, it is intuitive to say that we are still only in the middle to the next level in developing countries. The relevant departments believe that our public finance should now play more roles to improve people's livelihood and perform a lot of public functions in the process of economic and social pformation. This proportion should be further improved. It should be said that there is no big problem in terms of quantity.

It is how to improve the performance of the use of financial funds. In fact, all aspects of society pay attention to this problem. As taxpayers give money to the national treasury, is it possible for the public finance system to be as high as possible, high efficiency, and very effective in making good use of funds? To do this well, starting from a series of system construction problems, from the beginning of pparency to the complete improvement of the budget system, and raising the management level, there are many, many problems to be discussed. But in the course of our reform over the past years, we are doing a lot of work, that is, these efforts are shown in the reform of fiscal management and budget management, but in practice, the actual direction is focused on improving the performance of public funds and the use of financial funds. In this respect, we have to do a lot of work. Key

NetEase Finance: how much do you think the highest percentage of government revenue GDP is?

Jia Kang: we now have estimates, revenue, or government revenue. The total caliber of government revenue and GDP should not exceed 35%, we are probably in the early 30%.

NetEase Finance: you mentioned an international experience just now. I heard professor Qian Yingyi's speech before. He also put forward his viewpoint specifically for this group. He said China should not be compared with foreign countries. He said the reason was that a lot of foreign expenses could not restrain his expenditure.

But a large part of China may be precipitated by government agencies or inefficient things.

Jia Kang: he is still talking about the issue of performance. Our current expenditure must first be admitted that the emphasis on the equalization and systematization of the so-called livelihood of the people for the basic livelihood is very obvious, and it is also constantly emphasized and constantly strengthened.

But on the other hand, due to various reasons, the performance of our funds actually has low level of problems, and the administrative cost is still high. The financial sector has done some work in this respect, but to be honest, many things need to be solved in a coordinated way.

The essence of this matter is to exchange comprehensive reform.

NetEase Finance: as an expert in finance and taxation department, what aspects do you think our tax reduction space should be embodied in?

Jia Kang: we have attached great importance to the tax reduction space. During the "12th Five-Year" period, the first big tax reduction space was our high quality tax. We had already made the income tax in two ways. After the value-added tax pformation, we should further promote the expansion of value-added tax. This expansion is to replace the value-added tax, replacing the business tax actually implemented in the service industry. The disadvantages of the business tax are to form more repeated expropriation. The third industry should encourage its development. If we take the value-added tax instead of it, the value-added tax will have an advantage, which can reduce duplication, and actually reduce the tax burden of the service industry. This is a very important aspect of structural tax reduction.

The advantage is that we can adapt to the need to accelerate the pformation of development mode and upgrading industries.

Another structural tax cut is for small businesses, and the preferential tax reduction measures that have been launched should continue to be implemented, and we should try our best to make further use of them.

For some grassroots entrepreneurial activities, the development of small businesses should reflect more tax preferences and support.

There is also innovation. How can we get more tax benefits from the R & D investment of enterprises, how to get income tax credits, and so on? How can we encourage enterprises to work together and innovate more actively, upgrading and upgrading? This is also a common way to create a new national road, which is a very long-term incentive for the whole world.

Another is the personal income tax. How to reduce the low tax burden on personal income tax is a very important problem.

Yesterday, I noticed that Premier Wen Jiabao made it clear that the meeting should be held immediately to discuss whether the tax threshold would be raised.

From our point of view, with the rising price level, it is necessary to make dynamic adjustment. But if we want to consider more completely in this area and raise the starting point, is it possible to optimize the present system of the nine level excess accumulated wage income, and not to engage in the nine level, is it possible to shrink to six or five?

Low end tax burden is lowered, how the high-end tax burden can be appropriately increased, and how to integrate the comprehensive factors, which is more fully discussed, and is also estimated to be a gradual process. It is hard to say how much success will be achieved at a single step. It is likely that the multi-step gradual adjustment and optimization will take place.

In addition to this, there may be a tax increase and tax reduction act. During the "12th Five-Year" period, we should consider whether the carbon tax on chemical fuel consumption should be introduced on the one hand, if we can introduce a carbon tax to increase the tax burden for the multi emission enterprises. At the same time, we should maintain a macro tax burden in the middle of this tax reform according to the international experience. This levy a number of carbon tax revenues. The corporate income tax should be reduced accordingly.

The advantage is the so-called double dividend. On the one hand, the enterprises that are seriously discharged are pushed to the whole society by the negative externalities and social costs. Now they are internalized through tax levers, forcing them to reduce pollution by themselves. This is a heavy bonus.

Another bonus is that companies generally get the benefits of a lower income tax and encourage them to better play the role of market players. This is a double dividend.

The macro tax burden has risen and fallen, which is what should be mentioned during the "12th Five-Year" period.

There is another point. We believe that during the period of 12th Five-Year, there are still fees to be changed to taxes, and social security contributions. With the improvement of social security level, the most typical way is the basic old-age pension to go to the whole society as a whole. With this process, the payment of social security should be adjusted to a standard tax payment. Social security tax is essentially a fee to tax instead of an increase in tax burden, but a lower cost of tax collection. Its operation is more in line with the objective needs of modern social management, low cost, high efficiency, and the formation of basic social security in the whole society.

NetEase finance and Economics: what do you think of the future tax sharing system?

Jia Kang: the key to the fiscal tax sharing system is how to implement it under the provincial level. Our province has not actually entered the tax distribution system. It is still a multifarious system.

During the "12th Five-Year" period, the central document has made it very clear that we should enhance the tax power of the provincial finance, the right to tax administration, and appropriately raise their tax power, and at the same time, we must create a local system.

The property tax reform mentioned earlier is an important institutional advancement in this respect. After that, he should form a pillar in the local system.

In addition, the reform of resource tax that has already started in Xinjiang is expected to give less development to the industrial and commercial activities in the west of China. However, the resources of these regions provide pillars. These two pillars are very important. If we have these two pillars, plus its local taxes, the local tax system should clearly see its basic appearance during the "12th Five-Year" period.

Through the province's direct management of the county, through the comprehensive reform of villages and towns, strive for the final formation of the central provincial, city and county three level tax classification financial system.

NetEase Finance: the next step in tax reform is not between the central government and the local authorities, but between the provinces and counties.

Jia Kang: No, it is also a central and local place, but the emphasis is on the following provinces, and the basic framework is better formed through direct administration of the province.

The central authorities have much to say about how to further optimize the system between provinces and cities and counties under the local concept.

NetEase Finance: the big idea is to continue for 94 years.

Jia Kang: Yes, we believe that the basic system achievements in 94 years should be persisted and the problems left behind should be striving for a reasonable solution.

NetEase Finance: you mentioned the personal tax just now. From the point of view of the researcher, how much more should the threshold be raised?

Jia Kang: the starting point is a very technical matter. If it is relatively thick, it is not appropriate to raise it too much.

For example, I mentioned the nine level of excess accumulation can be reduced to six to five levels, because the low end of the tax rate how to deal with, how to handle the high-end, how to deal with high-end, have to be specific design.

NetEase Finance: is there any expected time for this achievement?

Jia Kang: we should see the action this year, that is, the action of its adjustment should be seen this year.

NetEase Finance: including the sub file.

Jia Kang: it may be related to nine levels of reduction, excess cumulative order, it is possible.

NetEase Finance: at present, do you think the tax burden of enterprises is not heavy?

Jia Kang: the tax burden of enterprises should be analyzed concretely. The macro tax burden that we mentioned before should not be regarded as particularly heavy. However, different industries and different enterprises should make specific analysis. We believe that the tax burden of small businesses and innovative enterprises should be further reduced, which means that although it seems that he is not heavier than other enterprises, it is more important to them.

Besides, in some industries, such as the third industry, it seems that the business tax is relatively standard. However, it has the factors of repeated collection, which is also biased and must be analyzed in detail.

NetEase Finance: what you mentioned just now is very important. We have noticed that whether they are sociologists, jurisprudence or even economists, they now sum up the motive force for the next step of China's reform, or the essence of which is financial disclosure.

Jia Kang: it is very reasonable. His financial openness is that public awareness and awareness of taxpayers are constantly improving. Chinese society is facing a series of challenges. On the one hand, development is very good. On the other hand, contradictions are highlighted, various contradictions, resources and environment constraints, contradictions in interpersonal relationships, and contradictions in distributive justice. All of these will inevitably come together, that is, the financial distribution system that should play a major role in this process. What is the information about it? Taxpayers, citizens, first of all, require the right to know, and ask for pparency.

What is the name behind it? It is called the right of inquiry, the right of recommendation and the right to participate. Finally, it is the decision-making power of the public to decide how to optimize the allocation of public resources through a reasonable mechanism.

Such a system construction is a very serious challenge, because we have to overcome many shortcomings in our present system, so we all value the fiscal pparency. Behind it, we have a clue, through democratization of financial management, legalization, and then the democratization and legalization of economic and social life.