Tax reform next year timing launched an analysis that says middle-income earners will cut taxes

Source: Internet
Author: User
Keywords Next
The reporter learned from the authoritative channel, regarding the personal income tax reform has the short-term and the medium and long term two kinds of plans, the medium and long term plan for the synthesis and the Classification union income tax reform.  The recent programme of tax reform will be introduced in 2011, but the medium-and long-term programmes cannot be implemented in the short term due to various technical, institutional and objective reasons. The focus of this programme is not on raising the starting point (cost deduction) but on the current level of tax rates and on the scale. China's personal income tax is a 9-level progressive tax rate, which in the world are more complex, and "Reduce the level, adjust the distance" has become the focus of this reform.  Reduce the level can be understood as, such as the 9 tax rate reduced to 6, the adjustment is mainly appropriate to expand the level, the significance of the reform is to increase the minimum taxable amount, so that most of the wage earners to apply the lowest level or two tax rates.  If a person's income is 4000 yuan, the starting point is 2000 yuan, the difference is equal to the person's taxable income, the current taxable income of 500 yuan within the applicable 5% tax rate, 500 to 2000 yuan applicable to 10% of the tax rate, the person to pay 200 yuan tax. If reduced to 6 levels, the taxable income of 2000 yuan below applies 5% of the tax rate, that is, in the case of 2000 yuan in the deduction of the amount of income 4000 yuan in line with the 5% tax rate, that is to pay 100 yuan tax, than the current system less than half. And so on, the scale will expand further than it is now, making it likely that the income that met the 20% tax rate would be adjusted to 10%.  This is a result of wage and salary gains. In addition, the current deduction standard for income from Labour remuneration and transfer of property is still 800 yuan, and the reform will raise the starting point of the above two incomes to be the same as that of wage earners.  "This part of the income is generally from mental workers, this can also reduce the burden of middle-income earners," the scholar analyzed.  For the reform package, a tax experts said, "tax adjustment can not always stare at the starting point, in fact, reduce the tax burden or there are many articles can do." In the tax reform, the central government also asked to increase the regulation of high-income earners, but the controversy is now greater. China's highest marginal tax rate of 45%, in the world is also a high tax rate, if the continued increase in tax rates, it may cause the rich malicious tax evasion.  It is reported that the current adjustment programmes for Low-and middle-income parties are more unified, and the high income of the tax adjustment is very different. Comprehensive
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.