Tax reform should aim at cultivating the middle class

New Zhijing Personal income tax reform has been under discussion for a long time, but has been slow to introduce a holistic solution. For now, the first reform package to reduce the base level and adjust the tax rate next year is expected to come out.　　This is a positive step.　　In my opinion, the goal of China's tax system reform is to realize the function of income distribution regulation, and to aim at cultivating a larger proportion of middle class and promoting social structure transformation. The current personal income tax law was adopted by the 31st meeting of the NPC Standing Committee in December 2007 and has been implemented since March 1, 2008.　　The main content of this adjustment is to raise the personal starting point to $2000. The current tax system has a level nine tax on individual wages and salaries.　　The outside controversy is bigger, is the fixed wage income mainly middle-income person becomes the main body that pays taxes, to those recessive income, the active consumption Big income group binding force is not strong.　　In 2009, China's personal income tax levied about 394.9 billion yuan, of which the income of wages and salaries accounted for about 63%, 2007 this figure is only 55%. Further said that the monthly tax amount of more than 5000 yuan (if combined with a basic deduction of 2000 yuan and three insurance, about about 8000 yuan before the tax) the income tax exceeds the total amount of payroll income tax of 50%.　　Data from the Ministry of Finance show that in 2008, in Beijing, Tianjin, Shanghai, Guangdong, Zhejiang and other places of the more concentrated multinational companies, this part of the tax is close to or more than 60% of the total amount of income tax, some even more than 80%. According to data released by the Ministry of Finance, from the national level, monthly wages in more than 20,000 of the tax payment accounted for the payroll income tax 28%.　　In addition to this part, the pre-tax income in the 8000 yuan ~20000 yuan of middle-income earners actually paid the payroll Income Tax Project about 22%.　　With 2009-year tax total of 394.9 billion yuan, the monthly income of 8000 yuan ~20000 yuan of white-collar companies actually pay a tax of about 54.7 billion yuan (3949x63%x22%). Although this figure accounted for only 13% of the total tax, but for the entire consumer group, the monthly income of 8000 yuan ~20000 of the population is the backbone of society, belonging to the typical consumption of the main group. McKinsey has defined the annual income of the emerging middle class consumers as 13,500 ~11.3 million dollars (about 94,500 ~79.1 yuan).　　Let this part of the group to become a tax payment of the main force, in the individual, in the consumption pull, there are no inconsiderable impact. The monthly income of 10,000 yuan, for example, 20% of the three risks a gold plus about 8.25% of the tax ratio, the last to get the approximate only 7175 yuan.　　In the context of high prices, high food prices and high travel costs, this income is hardly to be called "middle class". One of my friends who work in Hong Kong and pay in Shanghai has complained that he is paying more taxes every month in Shanghai than a one-year tax on a middle-class member of a bank in Hong Kong. This backgroundIs that Hong Kong has set a personal allowance, excluding the cost and related education and housing factors paid by taxpayers to obtain taxable income, and taking into account the situation of the taxpayers themselves, the number of children and the family population.　　According to foreign experience, the cultivation of a mature middle income class, both conducive to the growth of domestic consumer market, but also conducive to the expansion of personal income tax base.　　In recent years, there has been a move by the Treasury Department to discuss a family-based comprehensive tax reform, but so far there is no specific timetable for such a reform. In order to stimulate domestic demand, cultivate middle class and build a spindle-shaped social structure, it is imperative to reform the tax system for the middle class.