Controversy on the threshold of individual income tax

The reform of the income distribution system has entered a detailed stage, and the income multiplication orientation is the same as wealth.

20 13 On March 5th, Premier Wen Jiabao of the State Council mentioned in his government work report that China has formulated some opinions on deepening the reform of the income distribution system, and it is necessary to study and formulate specific policies to ensure that the system construction is in place and the income is doubled. Ministry of Human Resources and Social Security Minister Yin Weimin also said on the 8th that the reform of income distribution system has moved from "principle" to "detailed rules".

A number of deputies raised the issue of adjusting the tax threshold of tax leverage, which caused controversy.

The most controversial issue is the adjustment of the tax threshold. A number of representatives suggested adjusting the tax threshold. Among them, Zong, deputy to the National People's Congress and chairman of Wahaha Group, suggested that "wage earners should be exempted from personal income tax", Gan, member of CPPCC and chairman of Star Sporting Goods Group, suggested raising the threshold of personal income tax to 5,000 yuan, and Li Shufu, member of CPPCC and chairman of Geely Automobile, suggested adjusting it to 6,000 yuan.

Lan Song, a member of the CPPCC National Committee and deputy director of State Taxation Administration of The People's Republic of China, responded that raising the tax threshold to 3,500 yuan would reduce the number of taxpayers from 90 million to 30 million, making it difficult to continue to raise the tax threshold. Subsequently, Xinhua News Agency issued a micro-comment saying that the National People's Congress has the power to formulate and amend laws, and the adjustment of the tax threshold is ultimately decided by the National People's Congress, and the tax authorities have no right to make a final decision.

The process of "lowering" income distribution has accelerated.

Compared with "controlling height", the process of "reducing height" is obviously accelerated. According to the requirements of the income distribution plan, by 20 15, the minimum wage in most areas will reach more than 40% of the average wage of local urban workers. According to this index, the wages of migrant workers will be greatly improved. According to the data of Ministry of Human Resources and Social Security, there are 24 provinces that raised the minimum wage standard on 20 1 1, and 25 provinces that raised the minimum wage standard on 20 12, both of which increased by more than 20%. In 20 13, Beijing, Zhejiang, Henan, Shaanxi, Guizhou, Guangdong, Jiangxi and other provinces all raised the minimum wage.

On the issue of adjusting the minimum wage standard, local standards are not uniform. The minimum wage in Beijing does not include social security and housing provident fund, but Shenzhen and other places are included. In addition, the obvious rise in prices has weakened the "sense of gain" of wage increases. Chen Liangxian, deputy to the National People's Congress and mayor of Zhongshan City, suggested establishing a linkage mechanism between the "minimum wage standard" and CPI.

An entrepreneur who once ranked as the richest man in China repeatedly mentioned raising the tax threshold. In fact, there are many variables in a tax system, so it is unscientific to consider them comprehensively and design them reasonably, and just grasp one variable and say that this variable determines everything. Only 28 million people pay taxes, accounting for less than 2% of the total population. This shows that the individual tax has been quite marginalized. If the threshold is raised again, how many people can pay taxes? To put it bluntly, the development of individual tax in China is obviously unhealthy and even has some abnormal characteristics.

Take the road of combining synthesis with classification, and highlight the characteristics of synthesis. This is also a gradual process. Once the next step is taken, it is necessary to embody "integration" and integrate wage income with other income, which will be covered in the excessive progressive mechanism. This can solve the problem that some rich people don't have to pay personal income tax without paying their own wages. Under the existing system, the excessive progressive mechanism has nothing to do with them. If all incomes are covered by one tax, then the richest people will definitely be charged the highest marginal tax rate of 45%, which is much more reasonable.