The Tax Reform Plan Has Been Reported To The State Council &Nbsp, And The Tax Level Will Be Reduced.

The opening year of "12th Five-Year" personal income tax Reform is expected to break through.

According to sources, recently, the new tax reform plan has been submitted to the State Council, and the plan will be completed. tax rate The table is adjusted.

"The new tax reform plan may not change the threshold of 2000 yuan, but the tax rate has been set up and the tax rate has been adjusted accordingly. In addition, the reform plan has made some progress in the personal tax collection system, and it may adjust the other 800 yuan collection point to the same level of 2000 yuan of wages. The source told reporters.

In November 2010, the Ministry of finance, the State Administration of Taxation and the Legislative Affairs Office of the State Council jointly completed the drafting of the amendment to the personal income tax law. The draft has revised the tax system several times to achieve the goal of lowering tax burden for middle and low income earners.

It is reported that the objectives of this personal tax revision include: appropriately reducing the tax burden of the middle and low income persons, promoting the consolidated taxable income items, appropriately adjusting the tax rate grades, and clearing the contents of tax preferences and improving the collection and management conditions.

Yang Zhiyong, director of the Institute of Finance and Commerce of the Academy of Social Sciences, told our reporter that although the exemption rate of the tax reform is not raised, the tax reduction rate, the tax rate interval and the appropriate tax rate reduction will definitely result in tax reduction.

The most advanced tax rate is lowered.

"The setting of the highest tax rate is currently controversial and is likely to be lowered."

At present, our country's personal income tax has 9 progressive tax rates, ranging from 5% to 45%, compared with 4 to 5 tax rates internationally. After the reduction of the tax reform, the 5-6 level tax rate may only be retained, and the corresponding level distance will increase the middle and low income people to the lowest one or two tax rate.

"The tax cuts will benefit the middle and low income groups. The expansion of the scale will not allow the middle income group to enter the high income tax rate very quickly, which will reduce their burden. Liang Peng, director of the macroeconomic Department of the Economics Department of the Central Party school, stressed that the tax reform is helpful to the middle and low income people, but the main problem now is the initial distribution. The problem of initial distribution of income has not been solved, and it is difficult to adjust it through the two distribution system.

The most obvious change in the tax reform is the adjustment of tax revenue for high-income groups. According to the progressive progressive rate of personal income tax, a monthly tax rate of more than 100 thousand will be charged at a rate of 45%.

"The setting of the highest tax rate is currently controversial and is likely to be lowered." Yang Zhiyong said, "the highest tax rate in China is already too high relative to the international level. "

Liang Peng also believes that adjusting the highest tax rate of 45% is beneficial to tax revenue, because in fact, few people in China can get 45%, and some high-income people will adopt some methods not to pay taxes in the country. The adjusted tax rate can increase the actual territory. pay taxes 。

In addition, the tax reform will raise the most upscale setting to more than 100 thousand yuan in addition to lowering the tax rate of 45%. Yang Zhiyong also believes that the application rate of the highest monthly tax rate of 100 thousand should be appropriately raised in line with the current level of economic development.

Individual tax threshold

"The starting point will continue the 2000 yuan standard implemented in March 1, 2008."

The tax reform is unlikely to be adjusted, and it will continue the 2000 yuan starting point since March 1, 2008.

Ma Haitao, Dean of the school of finance, Central University of Finance and Economics, told our reporter that the increase of personal tax exemption has little effect on raising the income level of low-income people. At present, the minimum wage standard of most cities in China is lower than that of 1000 yuan per month, while the average monthly wage of the employees in urban units is about 2500 yuan. If we continue to raise the deduction standard, the high income earners will be benefited, while the middle and low income persons will not be involved or affect very little. This just violates the original intention of regulating the income distribution with the use of individual tax.

In November last year, the Ministry of Finance website also published an article pointing out that raising the starting standards is often more beneficial to high-income earners and less tax cuts for middle income earners. The article says: "most of the low-income people who make up the wage earners do not benefit from the need to pay taxes. The high income earners pay more tax cuts because of excessive progressive levying of personal income tax on wage income items, and there is also a regressive effect in reducing taxes. {page_break}

For example, if the cost deduction standard is raised from 2000 yuan per month to 3000 yuan per month, taxpayers with a monthly salary of 5000 yuan will be paid less than $100 a month, while taxpayers with a monthly salary of $10 thousand will pay less than 200 yuan a month.

Liu Shangxi, deputy director of the Finance Department of the Ministry of finance, said in an interview with reporters that the lifting of the exemption amount is a tax cut on the whole, but it is not conducive to equity.

For example, he said that China's income of less than 2000 yuan accounted for 90%, 2000 yuan or more of the income accounted for only 10%, if the adjustment is exempt from the amount, only 10% of the minority tax cuts, 90% people have no impact. Taking into account the rise in the cost of living in cities, the exemption can be adjusted appropriately, but how much more is needed.

In addition to reducing the burden of the middle and low income people, we should also co-ordinate financial affordability. At present, the share of personal income is the central and local "46" share. Personal tax is not only one of the sources of local income, but also an important part of the central transfer payment. Since 2002, personal income tax has been shared by the central government and the local authorities. The central government's financial resources derived from the reform of income tax revenue share are almost exclusively used for basic transfer projects such as general transfer payment, wage payment for workers and social security subsidies in the western region. If we only assign the function of individual income tax to regulate income, and negate the function of its revenue, it will not only affect the ability of the state to transfer payments to low-income people and regions, but also in the long run, it is difficult to play its role in regulating the high income.

"Tax cuts are not only reflected in the number of changes, it will involve some structural tax changes, while tax cuts, at the same time, other government revenue items will change what needs attention." Gao Peiyong, director of the finance and Trade Institute of the Academy of Social Sciences, said.

Implementing mixed tax reform

"We will adjust the collection points of the other 10 categories to 2000 yuan level."

So far, almost all adjustments to personal income tax have not really touched on the substance of personal income tax reform. However, this phenomenon is likely to change this year.

It is reported that the draft submitted to the State Council also plans to merge the 11 categories of personal income at present. At present, the classification of personal income tax system is implemented in China. In addition to the wage income, there are different deductions for the remuneration of remuneration for remuneration and remuneration for remuneration, which is more than 800 yuan. The goal of comprehensive levy is to adjust the collection points of the other 10 categories of income to the level of wage income, that is, 2000 yuan.

In Gao Peiyong's view, the reform of personal tax system in recent years is only "small step fine-tuning". At present, the reform direction of personal income tax is defined as "combination of classification and classification", and the existing "classified income tax system" will be changed to a "mixed all tax system" which combines comprehensive and classification.

"Since 2006, there has been no substantial progress in this reform. It is based on the rising cost of living and the need for macroeconomic regulation and control. The tax threshold has been raised and personal tax returns have been raised, and tax collection and management has been strengthened." Gao Peiyong said.

Some analysts believe that at present, the combination of China's personal income tax implementation and classification of tax system is too complex. At the same time, the tax rate has also brought about the fact of unfair, which greatly restricts the function of income redistribution. According to people close to the Ministry of finance, the goal of personal income tax reform is to establish a comprehensive and classified tax system and ultimately establish a comprehensive tax system.

"The implementation of such a tax system is to add a person's income together, then consider various specific circumstances, specify specific deductions, and collect taxes at the end of the year." The source said.

The implementation of such a tax system requires higher tax collection and administration, requiring taxpayers to declare tax to the Inland Revenue Department. In addition, supporting systems should also be established, such as cash management, networking of banks and tax systems, etc. Once the comprehensive system is implemented, it means collecting directly for the residents and directly paying the arrival of the times by the residents.

"When you find that someone who wears a tax uniform and you can directly deal with you as a personal taxpayer, then the era of China's direct tax will really come." Gao Peiyong told reporters.