Tax starting point too high to increase commodity tax burden lower tax rate feasible
KeywordsCommodities tax starting points taxes
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BCC Beijing March 14 News According to the Sound of economic "world finance" report, a tax starting point, in the end is a high point, or a little better, this topic has aroused great discussion. The vast majority of people support the introduction of a tall tax starting point, the reason is that the increase in the starting point means that they can pay less or no tax, reduce their burden. But economist Watson does not think so, he said, some people think that the tax starting point refers to 10,000 yuan, then the taxpayers are all rich, the poor and even a large number of middle class are 0 tax, it is not improved income distribution? In fact, this is a very one-sided and distorted view. Because as long as there are countries in the world, there are public utilities, there are taxes. A person who does not pay the personal income tax, also must pay the commodity tax. China now basically does not have a real property tax, so the source of national revenue is not a commodity tax, or income tax. The increase in the tax starting point means that the overall income of the tax is lower than that of the total revenue, instead the proportion of the commodity tax increases. The characteristic of the commodity tax is that the more income is not high, the general public with limited savings, the higher the proportion of goods and General Service consumption, thus paying more taxes. China's tax on the overall proportion of the total tax in the international low, the original adjustment role is small, and further reduce the proportion of tax taxes, can only make the overall tax burden more to let commodity taxes that is the public commitment to the low income, so it is not conducive to narrowing the gap between incomes and wealth. If, as Watson has said, a tall tax levy has reduced the number of beneficiaries, what can be done to really relieve the personal burden? Watson believes that the tax burden can be reduced by simplifying and reducing the tax rates applicable to middle-and middle-income-earners. For example, when the tax starting point is unchanged or the increase is limited, to reduce the tax rate of the original wage income of $10,000 to 15% and 20%, to 5% to 10%, so that the lower-middle-income and middle-income earners will have a significant reduction in taxes and less tax than the adjustment points. At the same time, in the case of maintaining the marginal tax rate of 45%, it is appropriate to raise the interval tax rate at the high income side, so that the high-income earners do not pay less tax because of the lower tax rate. In this way, the low-end has to return, in the low-end of tax reduction, high-end tax burden unchanged, even if the tax starting point change is not small, midrange, low-end earners have benefits, the income gap will naturally shrink.
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