Experience Summary Of Individual Tax Reform

The particularity of personal income tax is determined. Individual tax reform It is particularly suitable for carrying out the important task of tax reform "from point to area". This is mainly due to the fact that on the one hand, the total income of personal income tax is not large. For example, last year, it accounted for only 5.8% of the total tax revenue of the year. Therefore, compared with other major taxes, the interest disputes involved in individual tax reform are relatively small, and reformers are relatively less concerned about risks. Reforms are easier to move forward in a relatively easy and favorable atmosphere.

On the other hand, although the total income of individual income is not large, it is extremely directly and extremely closely related to the vital interests of millions of households. Therefore, every step of the reform is highly concerned by the people. This situation obviously makes the tax reform particularly helpful. Taxpayer Sense of responsibility and awareness of rights, and then build the most solid foundation for comprehensive tax reform.

Then, in what areas will the current round of tax reform lead to a comprehensive tax reform? We believe that at least four points of experience can be promoted.

First of all, the current round of tax reform effectively conveys a clear signal of structural tax cuts. A prominent feature of China's economic operation is that the fiscal and tax revenue has maintained super high growth for many years. This trend of overall distribution of national income, which is constantly inclining to the government, is just in line with deep hidden dangers such as the low consumption desire of residents and the strong financial constraints of private enterprises. Therefore, the basic idea of tax reform in the future period must be based on a more vigorous structural tax reduction, which will stimulate the endogenous driving force of economic development.

Secondly, the current round of tax reform has made clear that we should pay attention to the correction function of tax factors on factor income distribution. Before that, the trend of China's national income distribution pattern is not only that of the government and state-owned enterprises, but also the trend that the share of labor factor distribution has declined rapidly and the share of capital factor distribution has gradually increased, which is one of the most important reasons for this situation. Therefore, the next step in tax reform should be based on a slight improvement in the current round of tax reform, and pay more attention to the allocation of labor factors through the adjustment of tax system.

Third, the current round of tax reform has lightened the tax burden of the middle and low income earners, and increased the personal tax burden of the high income group. Therefore, in this tax category, we have basically achieved the expected goal of improving progressiveness. But the problem is that China's tax revenue is mainly indirect tax, and the indirect tax burden is generally regressive with income. Therefore, based on fairness consideration, the next step of tax reform is not only necessary to further improve the progressive taxation of direct taxes, but also it is necessary to gradually reduce the proportion of indirect taxes in the design of the overall tax system.

Fourth, the current round of tax reform has extensively solicited public opinions and strictly followed the revision procedure. But outside of it, 80% of our tax legislation (broad sense) is made up of The State Council In accordance with the authorization of the NPC, the regulations, interim provisions, trial draft and other administrative regulations shall be promulgated. Therefore, the next step of tax reform is to promote efficiency and fairness in the tax system design, and to respect and strengthen the principle of "statutory tax revenue" in the process of procedure. After all, the rationality of tax system must rely on procedural standardization so as to get sufficient protection and confirmation.