Tax Reform: Can Individual Tax Be Collected By Family?
Individual tax reform
It concerns every worker's vital interests and has attracted much attention.
However, judging from the reform direction announced by the State Council, the reform still stays at the level of raising the tax threshold and adjusting the gradation and distance from these "minor repairs and small subsidies". Instead of the current taxonomy of taxes collected by individuals, the comprehensive tax system levied by families, which has been highly praised by academics, has not been put on the agenda.
The personal tax reform, which only heard stairs and no one came, finally came to an end before and after the "two sessions" in 2011.
In February, Premier Wen Jiabao of the State Council said in an interview that China will raise the deduction standard of personal income tax paid wages.
After that, the executive session of the State Council, held in March 1st, passed the draft amendment to the personal income tax law in principle, and determined the reform direction of raising the threshold of personal income tax and adjusting the grade and grade.
However, more than a month later, the specific tax law amendment time and
Threshold
The key information such as the specific increase rate has not been announced so far, so various conjecture versions of 2500 yuan, 3000 yuan, and 5000 yuan have arrived unexpectedly.
Although the main energy of the current tax reform is on the starting point, in fact, the rise of the threshold can only play a temporary role in buffering. The fundamental problem of China's personal tax is the whole tax collection mode.
Comprehensive tax system is the trend of the world.
From a worldwide perspective, there are mainly 3 types of personal income tax collection: taxonomy and taxation.
Comprehensive taxation system
Comprehensive and classified taxation system.
At present, China adopts the taxonomy of Taxation, that is, according to the types of income, different methods of taxation are applied separately, and they are collected monthly or according to the number of times they occur.
Different tax collection methods shall be applied to 11 tax items, including wage income, income from production and operation of individual businesses, and remuneration for labor services, and different tax rates shall be applied.
The advantages of this model are simple, fast and low cost, but the disadvantage is that it can not take care of the actual burden of taxpayers.
Liu Fuyuan, an expert on tax law, said in an interview with this reporter that it is precisely because the classified tax system is a tax system which can make the government "lazy" but not fair enough. Therefore, most countries in the world adopt the comprehensive tax system.
The comprehensive tax system is the unit of tax time instead of the month, and the tax unit is the family instead of the individual.
For the salaried people, the wages are taxable, but the tax on the payroll is the withholding of the tax by the employer, and the self declaration of individual tax in each fiscal year is the formal tax payment.
Family tax is more equitable.
Liu Zhirong, an independent scholar and a media commentator, has been advocating tax collection for family based comprehensive tax reform.
Liu Zhirong believed that the family is the cell of the society, the smallest unit of economic activity, and the financial community shared by all members of the family.
From a legal point of view, the main purpose of levying personal tax is to regulate the gap between the rich and the poor, but the gap between rich and poor does not come from personal income, but from family income, because family wealth is related to the number of family members supported by workers.
Therefore, we must consider the family burden if we impose a personal tax, so that people who are burdens on their families will pay less taxes, so that families with less burden will pay more taxes, so as to ensure the expenses of living necessities for low-income families. This is the institutional arrangement for the poor to be decent and dignified, and more in line with the principle of fair and pparent taxation.
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