The Truth Of China'S Personal Tax: It Is A Mistake To Increase Taxes For Those Who Earn 120 Thousand Annually.

What is called personal tax? As the name implies, it is to regulate the income of high-income people, so as to reduce the gap between the rich and the poor. The greatest value of personal tax is to bear the role of maintaining social equity.

The tax structure of most countries in the world is "inverted Pyramid type". The highest income group takes the most income, while the low-income group basically does not pay taxes.

Our country is the so-called "olive type", the main part of paying taxes is the salaried class.

A research report of the Ministry of Finance in 2009 also pointed out that the majority of the working class tax paid half of the personal income tax.

China's personal income tax is totally reduced to "payroll tax". In addition to accumulative wages, there is little collection of other income.

However, for some real high-income groups, they can even earn their wages zero.

Therefore, in the past years, every time the "two sessions" saw that the representatives of the members of the rich committee only appeal on raising the tax threshold, I can not help but hope that they will start their own operations and take the initiative to pay more taxes.

Over the past few days, a document issued by the State Council on the implementation of opinions on stimulating the vitality of key groups and increasing the income of urban and rural residents has been heated on the Internet.

Because this document proposes to further play the role of tax adjustment in income distribution, improve the tax system including personal income tax, and gradually establish a comprehensive and classified personal income tax system, further reducing the tax burden of the middle and lower income persons, giving full play to the income adjustment function, and appropriately increasing the tax adjustment intensity for the high income earners.

Among them, the high-income people here are interpreted as "high income earners with annual income of more than 120 thousand". Subsequently, experts from the Ministry of Finance and the State Administration of Taxation issued a rumor, saying that it is a misreading to increase taxes on people with an annual income of 120 thousand. It is purely a rumor. 120 thousand yuan is not the dividing line between the high and low income groups.

More than 120 thousand of taxpayers who have paid more than $100 per year voluntarily declare their duties as early as 2006.

Those who have good deeds believe that this is entirely based on the understanding issued by the State Administration of taxation.

In 2006, the self taxation declaration method of personal income tax (Trial Implementation) promulgated in 2006, the State Administration of Taxation stipulates that the standard of self declaration is 120 thousand. In 2010, the Circular of the State Administration of Taxation on Further Strengthening the collection and management of personal income tax for high income earners, once again proposed that the taxpayer's statutory duty for taxpayers earning more than 120 thousand of their annual income tax is an important measure for strengthening the collection and management of high-income earners.

Since this document has never been abolished in writing, it is understood that "120 thousand" is a high income earner and there is no mistake in strengthening tax adjustment.

If this is the case, the value of the discussion is not great.

I think the biggest value of this "rumor" is to reveal the truth of China's personal income tax again.

That is, this "rumor" causes a bunch of bogus "Gao Fu Shuai" to tremble with fear and anxiety. The root of the problem is that the personal income tax, which regulates the distribution of personal income, is mainly paid by the working class in China, thus forming the tax structure of "the rich and the less paying taxes and the poor paying more taxes".

Of course, the root of individual tax being reduced to a wage tax is that we are lagging behind.

。

In the vast majority of countries in the world, the tax system of classification and integration has been implemented. China still implements a lagging taxonomy.

The biggest drawback of taxonomy is that it is difficult to comprehensively and completely reflect taxpayers' authenticity by collecting different kinds of income separately.

In this way, people who have more sources of income and higher comprehensive income pay less taxes or even do not pay taxes. The less income and lower income people pay more unfair taxes. Two, they do not deduct according to the actual personal burden. For example, the cost of supporting the elderly is not deductible, and the personal loans are not deductible.

This resulted in greater injustice.

The key to the breakthrough is to restructure and reverse the fundamental deficiency of China's personal tax system by reconstructing China's personal tax system, so as to embody the essence of individual taxation and embody fairness and justice. The success or failure of individual tax reform affects income distribution.

It is right for the rich to pay more taxes, but if more taxes are paid to the "high-income earners" who are particularly hard to earn in the city, "120 thousand of annual income", such a tax design is shameless.

Why the fear is not the real high income people, but these false "high-income people", because the only real taxpayers are empathy for personal taxes. They consciously take themselves into the high-income class and pay taxes voluntarily.

So, I think it's not that people don't understand, not a rumor seems to have settled everything.

The popularity of this rumor is precisely because everyone understands that it is precisely because many of our documents, no matter how many years ago, could be taken out at any time as long as he had not been abolished in writing.

At the same time, after many years of tax reform, tax reform has become the pronoun of "tax increase". The fear in the bones reflects that the "structural tax reduction" has been reduced to a harsh reality of continuous tax increase.

After causing everyone's fear, the authorities concerned would be lucky with a mild rumor.