The Starting Point Of Individual Tax Should Also Be Greatly Improved.

Only by implementing a personal tax system based on annual income by family tax units can we truly reflect the tax system.

On the 25 day, the Standing Committee of the National People's Congress of the people's Republic of China passed public consultation on the draft amendment to the personal income tax law just after the first consideration. The draft raised the tax threshold to 3000 yuan.

Substantially improve

More experts and scholars and the general public, represented by Cheng Siwei and Mao Yushi, believe that the interval of individual tax threshold should be 5000 yuan to 8000 yuan or even 8000 yuan to 10000 yuan.

There are two main reasons for this: first, the results of normative analysis with marginal utility theory support this view; two, it is in line with China's structural adjustment, pfer mode, expansion of domestic demand and consumption promotion, and the path choice must be based on cultivating and expanding the "middle class".

However, a few experts and scholars and a few social public representatives, represented by Jia Kang, the Finance Ministry of Finance and Huaqiao University of Wahson, and a handful of the public believe that the scope of the tax threshold should not be too high, because raising the tax threshold is conducive to the rich, not conducive to the poor, and will increase the gap between income distribution.

There are two main reasons for these scholars: first, the western developed countries have no threshold or low threshold; two, support the view by analyzing the quantitative changes in the tax structure after raising the threshold.

Of course, I support the former.

The reason is that the former can respect the expression of public opinion and the demands of people's livelihood, as well as the two main reasons mentioned above. At least, the following four reasons can be supplemented.

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First, the tax threshold is not comparable internationally.

The United States and other western developed countries have generally established a family tax system, annual income independently declared personal tax system, and generally adopted the tax exemption index adjustment and negative income tax system.

Under this system, the remaining part of household income after deducting tax allowance is taxable income.

The tax-free items include alimony, child support, tuition fees, charitable donations, and the expense of freelancers.

At present, China's individual tax is classified tax system. The direction of the future reform is to implement a personal tax system combining classification and synthesis, so that the family tax system will be implemented when the conditions are ripe.

From this point of view, from its functional role, the starting point of our country is actually equivalent to the "tax exemption" and "levying point" in foreign countries.

Obviously, it is not appropriate to compare our tax threshold with the tax threshold of foreign countries.

Secondly, raising the threshold of personal tax is the best institutional arrangement under the established constraint conditions.

There is no doubt that only the implementation of the individual tax system based on annual income by family tax units can truly reflect the actual affordability of taxpayers, reflecting the principle of the ability to pay taxes, and conforming to the goal of social equity and justice.

Unfortunately, for us, the establishment of such a system is still an extravagant hope.

A system of "combination of classification and synthesis" has been calculated for fifteen years since it was written into the "planning for the year" (after which it was written into the 11th Five-Year plan and the 12th Five-Year plan). It has been ten years since the time came.

A small "classification and integration" system is the same, let alone the more difficult, more complex family tax system.

But in the current personal tax system has seriously affected the individual "money bag", such a long delay is not a way.

It can be said that a substantial increase in the tax threshold is the best institutional arrangement for optimizing the tax system and reducing the drawbacks of individual tax under the "established constraints".

There are, of course, sub optimal institutional arrangements, such as pulling the first level to about 10000 yuan, and applying the duty rate to 1% below.

Third, it is in line with China's current economic growth stage of personal tax function positioning.

The economic growth of any country has a certain stage.

According to Rostow's theory of five stages of economic growth, China's current economic growth stage is still in the pition stage from take-off preparation stage to take-off stage.

To adapt to this, paying attention to the cultivation of private investment and financing ability and adopting policies conducive to the formation of private capital are the main economic policies at this stage.

Fourth, truly play its role.