2016 Is A Big Year For China To Cut Taxes. This Is A Good Thing.

According to UBS estimates, the scale of government tax cuts in 2016 is expected to be around 743 billion 700 million yuan, of which the scale of business tax reform and value-added tax reduction is about 383 billion 600 million yuan, and the scale of social security related costs reduction is about 240 billion 300 million yuan, accounting for tax reduction projects of small and micro enterprises. The total tax reduction is about 1.1% of GDP.

This is not a small number, and that is why.

We must play the role of stimulating the economy and consumption in order to afford the cost.

In the past, the cost of social insurance undertaken by the government, enterprises and individuals is partly to pay for the establishment of basic social security, but the high cost is unsustainable.

At the joint session of the twelfth session of the twelve NPC Standing Committee held at the end of 2014, Ma Kai, vice premier of the State Council, said in response to members' questions that the current level of endowment insurance payment is indeed high, and that "five risks and one gold" has accounted for 40% to 50% of the total wage. Most of the provinces and cities are paying more than 40% of the total wage.

Accounting expert Ma Jinghao dismantling wages and social security composition, the example is as follows: an employee is currently paid 8000 yuan a month, after deducting five risks one gold and individual tax can dominate the wage income of 6053.9 yuan.

One day, the employer raised the salary by 2000, and the employee's pre tax salary rose to ten thousand yuan.

However, as mentioned above, after deducting the items, the employee received a monthly salary of $7454.3, an increase of 1400.4 yuan over the previous 6053.9 yuan.

The cost of employers is increased from 11528 yuan to 14410 yuan, and the increase of 2882 yuan is 2.06 times the increase of employees' wages.

Such a high rate increases enterprise costs and cuts.

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Employers and employees prefer to keep cash in hand, maintain low wages tacitly, and even rarely sign formal employment contracts in some industries.

I went to the restaurant and car wash shop on the street to make random investigations. When asked about three risks and one gold, the owner laughed heartily. Now it has been hard to make a living, signing a labor contract to pay three risks and one gold for the car washing workers, and simply shut down.

Some owners are not shy about saying that what we signed with them is not the employment contract, but the subcontracting contract of the enterprise project, so that they can be responsible for themselves.

Because of this, Central

It is necessary to be concise and clear, with controllable cost and no complicated deduction.

For example, some people put forward personal income tax, family burden deduction, mortgage interest burden deduction, etc., in addition to more people trying to seek benefits, there are not many advantages.

This is not to say that the above idea is unreasonable, but it will involve who will calculate the family burden, who will verify and who will examine and approve.

Under realistic circumstances, we must have an accurate estimation of the credit soil of our country.

A simple and bottom line tax cut is a pragmatic move and an economic push.

The complex tax system can not adapt to the newly released and low credit society.

At first glance, it seems that the unscrupulous owners blindly exploit workers, but this is a shallow interpretation. The first meaning of the enterprise is to survive, the cost will not disappear, and will only be passed on, so eating and washing cars will become more and more expensive. If they can't get married, they can only close.

According to the current mode of tax payment, most small and medium-sized enterprises are unable to maintain their livelihood, so they can not talk about employment opportunities.

Reducing social security related costs is a pragmatic move, which will not make the elderly's quality of life worse.

This is because the current part of the employees' pay is not exactly the same as the final entry into the personal account.

Because of the unfair distribution of social security resources, people in the system always call for a minimum wage increase and appeal for higher pay. This is also consistent with the general reason for the benefit of many people.

The real bottom worker can benefit less from social security. If the mobile manufacturing army even gets the good protection of the enterprise, it may not be able to take the part paid by the individual when he leaves the place.

In the past, migrant workers in Guangdong would queue up to take away part of their payment when they left town for work, though they would "suffer losses", but that was also a seemingly irrational and rational choice.