Experts suggest adjusting tax levels to reduce burden on low-and middle-income earners

79.3% Public concern the Ministry of Finance published a tax situation the Ministry of Finance experts believe that the adjustment of the tax rate to 5 levels can reduce the burden mapping: Yang Daxin June 17, the Ministry of Finance announced "China's personal income tax basic situation", personal income tax has become China's fourth-largest tax, 2008 levy of 372.2 billion yuan.  This is the first time in China to disclose personal income tax. June 20 ~ 21st, China Youth Daily Social Research center through the survey network, the National 31 provinces (districts, municipalities) 7165 People Survey (61.4% of the People are "" ", 19.9% of the people are" whenever "), 79.3% of the public attention to the Ministry of Finance published personal income tax basic situation,  31.1% said they were "very concerned". 71.4% of the people think that the biggest problem of tax collection is not easy to levy on high-income groups "read the Treasury's tax news, I know how the tax deduction, the report is very clear, the data is very detailed." "A Beijing search engine company staff Wangyu said that she will receive a tax certificate at the beginning of each year, the general also look at how much tax they have paid in the past year, now only on the tax model, tax rates and other tax knowledge has a certain understanding." "It would be nice to have this tax report published once a year, and I'd like to know where our taxes end up," he said. "According to the survey, 53% of the people in the Treasury who say the basic status of personal income tax are implementing the taxpayer's right to know, 52.3% say it is a public disclosure of government information, and 48.9% say it reflects the Government's respect for taxpayers."  At the same time, 58.2% of people want the data in the report to be more transparent, and 35.5% expect the basic status of individual income tax to be released once a year. Han Chaohua, director of microeconomic research at the Economic Research Institute of the Chinese Academy of Social Sciences, believes that tax reform is actually relevant to the public interest.  The Ministry of Finance is not only conducive to the disclosure of tax information, but also conducive to the community to raise questions and fully express their views, so as to better promote the tax reform.  A notable figure in the basic situation of personal income tax in China is that, in recent years, the proportion of personal income tax income to personal income tax is about 50%.  In this survey, 62.9% of the respondents said that "wage earners" pay a high proportion of the total tax revenue, 59.1% of people say that the high income group tax income ratio should increase. Wangshuichong, an associate professor of economic sociology at Renmin University, said that the cost of taxing personal income taxes in the form of wages was low, which could explain why wage earners accounted for about 50% per cent of individual income-tax projects. Because the income distribution is highly irregular, the tax can only be levied on the relative standard wage income, so the working class becomes the actual tax subject. In addition, the tax is levied under nominal wages and at the national level, which makes it easier for ordinary people in big cities with high consumption indices to feel the burden of life, especially young people with family burdens. The survey shows that the issues in the public tax collection include: High-income groups have diverse sources of income, are not easy to levy (71.4%), lack of strong punitive measures against tax evasion (54.8%), family conditions and other factors (48.1%), low tax starting points (28.6%) and so on.  An information and regulatory system that supports fair tax collection should be established. "China's personal income tax basic situation" pointed out that, according to economic development, consumer spending, market prices and other changes, the future of the tax threshold will be adjusted in due course.  The survey found that 29.4% of the respondents thought the Treasury should give a timetable for tax adjustments, while 83.6% favoured raising the tax starting point (45.5% of whom expressed great support).  Kang, director of the Finance Science Institute of the Ministry of Finance, said in an interview with the Chinese youth Daily that the margin of improvement of the tax starting point is limited, and the key is how to adjust it into the plan of the reform of the collection and administration, and realize the goal of combining the combination with the classification. Kang said the adjustment of tax rates would be more effective in narrowing the income distribution gap and promoting tax reform. China currently has a nine-level excess progressive tax rate, the excessive number of documents will stimulate tax evasion behavior. In his view, it would be appropriate to have 5 levels, such as 1% for the lower income, 5% for middle-income earners, and more than moderate income to accelerate the progression to 15%, 25% and 35%.  After this adjustment, the burden of low-and middle-income earners will be greatly reduced, and the tax burden for high-income earners will increase accordingly. Han Chaohua that the individual income tax rate adjustment can not go to extremes. High-welfare countries such as Sweden have some drawbacks, according to the progressive rate, where some of the income of high-income earners is taxed at a rate of 50%. "How to motivate people to work and create enthusiasm?" High risk and high contribution to get higher pay is also the should. "" There is a regulatory loophole in the current tax collection, first of all, the tax authorities have limited ability to levy, the actual imposition of the situation, can not keep up with the ideal state. Han Chaohua said that the current distribution system is not standardized, the lack of statistical capacity of personal income, but also important reasons. "Should the amount of subsidies and allowances between individuals and units not be included in the taxable limit?" In addition, how do some people's grey income, or earnings outside the administration of the tax department, be included in the statistics? There are many gaps in these basic jobs that have not been filled, and tax regulations and levies are difficult to perfect. Wangshuichong that withholding income is common. "For example, taxpayers with a yearly income of $120,000 will have to declare their own taxes, and according to the Ministry of Finance, the figure is 4 million." But look at the cars that run in big cities every day and know that the numbers are much lower than they actually are. This requires the establishment of a comprehensive system of personal income information . Now that the system of computer systems and Bankcard is so developed, the relevant departments, if determined, should be able to establish the information system. Last month, the State administration of taxation issued a notice that our country will be in the end of this year all withholding units into the full amount of withholding management. Some experts believe that this isIn order to establish a unified tax collection and management information system, it is the transition from classified tax system to comprehensive and classified taxation model.  In the survey, some respondents feared that the move would only guarantee the income management of wage earners, and that there was still a lack of effective regulation of many forms of revenue for high-income groups. Wangshuichong proposed to establish a nationwide national income consumption information system, including personal consumption and income of two information. For example, for a variety of reasons, can not thoroughly ascertain the income of individuals, then according to individual consumption, through the form of consumption tax, personal income adjustment. Generally speaking, personal income is often reflected by the structure of personal and family consumption. In the case of financial crisis, you can consume more, the lower the consumption tax form, pull consumption. At the end of the year, the individual's income and consumption will be sent to relevant departments for review.  If there is less consumption, income is not high, but the personal income tax paid much, then you can give such people a certain tax rebate. "In short, the relevant departments should set up a set of information and regulatory system that can support fair tax collection, with such system and technical force, and with the determination of fair tax of the relevant departments, the personal income tax reform can be pushed deeper, and not merely stay in the debate of tax threshold.  "Wangshuichong said. According to the survey, 56.3% of the people proposed to establish a comprehensive income information system, 45.6% of people proposed the establishment of a unified banking system, 43.9% people believe that a sound social credit system to avoid tax evasion, evasion and avoidance. In addition, 28.2% of the people suggested that the tax adjustment should be linked to wage changes and 27.2% of the people said the tax starting point should be linked to economic indicators such as CPI inflation.