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    If The Tax Threshold Is Raised To 5000 Yuan, Who Will Benefit From It?

    2015/3/11 14:07:00 12

    Individual TaxStarting PointRemuneration

    Representative: tough families are still paying taxes.

    Dong Mingzhu, chairman of the National People's Congress and chairman of GREE, suggested that the tax threshold should be raised to 5000 yuan, which could play a role of increasing wages and saving the people.

      

    Dong Mingzhu

    In its motion, it was pointed out that more than 20 years ago, the starting point of personal tax was about 13.3 times the monthly salary. Personal income tax was mainly charged to a few high-income earners. Nowadays, the working class with low and middle income has become the main body of the levy, which violates the principle of tax collection to promote social equity.

    She also said that rising prices, especially high housing prices, have made the public, especially those with lower incomes, feel the pressure of living expenses obviously.

    3500 yuan in many cities can only maintain a minimum of survival, a considerable number of people's wages have not or can not be improved, a substantial increase in the tax threshold, can increase.

    Disposable income

    The role of relieving the pressure of life is also conducive to expanding domestic demand.

    Another NPC deputy, Zhang Yubiao, Secretary of the community Party committee of Nanling village, Shenzhen, suggested that the tax threshold should be raised to more than 5000 yuan, and suggested that the tax threshold should be linked to the growth of the per capita disposable income of the residents announced by the statistics department, so as to establish a scientific and dynamic mechanism according to the annual adjustment.

    Zhang Yubiao believes that the tax threshold has remained unchanged for four years, without considering the substantial increase in basic household expenses such as food, housing and travel.

    At present, 3500 yuan is far below the monthly income per worker in some large cities in the country.

    This means that in these cities, people who are below the average social income and who are struggling to support their families are still paying their personal income tax.

      

    Experts say flexibility should be set.

    Individual tax threshold

    According to media reports, Jia Kang, former CPPCC member and former director of the Financial Science Research Institute of the Ministry of finance, once said that there are very few people paying taxes now, only 28 million people, accounting for less than 2% of the total population.

    In 2011, when the tax threshold was raised to 3500 yuan, Wang Jianfan, deputy director of the Ministry of Finance and taxation, said that the number of taxpayers who paid their salaries tax decreased from about 84 million to about 24 million. About 60 million people did not have to pay a personal tax.

    Liu Huan, vice president of the tax School of Central University of Finance and Economics, said that in theory, with the increase of the tax threshold, the tax payer will continue to decrease. However, since 2011, the wage level of Chinese people has increased a lot, and the number of people paying taxes according to law has also been increasing. Therefore, the increase to 5000 yuan will require repeated calculation.

    Liu Huan thought that if the tax threshold was raised to 5000 yuan, the beneficiary group would be the wage level of 3500-5000 yuan. In the large and medium-sized cities, the wage level is not high. Therefore, the beneficiaries of raising the threshold are the ordinary wage earners.

    Liu Huan suggested that factors such as price factors and residents' living standards should be considered comprehensively, and coefficients should be set to adjust the tax threshold for dynamic and elastic adjustment.


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