June 18 Chinese Ministry of Finance announced on the 17th, "the basic situation of China's personal income tax," the report pointed out that according to economic development, household consumption expenditure, the level of market price changes in future tax threshold will be adjusted in due course. But the report, a substantial increase in the threshold, the high-income groups benefit more than the interests of low-income groups will suffer.

  The personal income tax by the Ministry of Finance issues a report prepared by the Study Group revealed that in 2008 more than 120,000 yuan every year from the initiative to declare the number of taxpayers 240 million personal income tax accounted for about 3% of taxpayers; to pay tax for 1294 billion, accounting for personal income tax of 35% of total revenue; self-declaration of the power concentrated in personnel, finance, oil, telecommunications and other departments and corporate shareholders, executives and other professional institutions.

  Payroll tax from the current standard deduction for the cost of 2,000 yuan / month, the "three dangerous one gold" (the general staff should be working on about 20% of income) can be found in the pre-tax deduction, personal access to the one-child subsidies, child care subsidies retired pay exempt from personal income tax. This basis, the monthly wage income below 2,500 yuan do not have to pay personal income tax, the monthly wage and salary earners were 3,000 yuan, 5,000 yuan, 8,000 yuan and 10,000 taxpayer dollars, the monthly personal income tax liability generally is about 20 yuan, 175, 535 yuan and 825 yuan, the tax burden (tax liability / month wage and salary earners) were 0.7%, 3.5%, 6.7% and 8.3%, less than 10%.

  Income from sub-projects, the projects in recent years, personal income tax from wage income in total personal income tax revenue is about 50%.

  The report explained that China's personal income tax has always been the "more high-income tax, low-income people pay less tax or not to" the spirit of the legislation and that will not raise the threshold of low-income people benefit, but will affect the the interests of low-income people.

  Reported that a substantial increase in costs if the current standard deduction, the benefit is more than high-income earners, middle-income people benefit less. For example, the standard deduction will be raised to 3,000 yuan / month, a monthly salary of 5,000 yuan for the taxpayer to reduce the tax burden can only be 100 yuan / month, while the monthly salary of 10 million taxpayers to reduce tax 350 yuan / month; will be deducted from standards to 5,000 yuan / month, a monthly salary of 5,000 yuan for the benefit of the taxpayers 175 / month, while the monthly salary of 10 million taxpayers 1050 yuan / month; standards will be deducted to 10,000 RMB / month, a monthly salary of 5,000 yuan for the taxpayers still benefit from the 175 / month, while the monthly salary of 10 million taxpayers 2800 yuan / month.

  And raise the tax threshold, and low-income groups can not benefit at all, but to become the main interest groups affected. "Primarily for tax benefits and other vulnerable groups, if the amount of deduction to increase too much, a large number of high-income tax reduction would reduce state revenues, state subsidies for low-income groups, as well as social security, education, health care and other expenditures will be affected. "

  The report mentions that on the personal income tax reform, "a combination of synthesis and classification system" is the aim. This system is part of taxable income to the end of the project to be comprehensive, progressive tax rates apply to taxation, the taxable income of other items classified according to the implementation of the proportion of tax levied. The system model can solve the classification of the tax burden unfair taxation system, but requires the collection and management and supporting the corresponding conditions, if there is no co-ordination of collection and management and protection measures, in theory, the design of more equitable tax system in practice may lead to greater injustice.

  Prior to this, all heat that the "domestic threshold of whether or not to raise taxes," the subject from the end of last year, "speculation" to this year's "two sessions." Members of the CPPCC National Committee, the Ministry of Finance Director of the Institute of Fiscal Science Jia said he was interviewed, at least within a substantial increase in personal income tax threshold, if the adjustment of personal income tax, proposed to hold a public hearing.

  Jia said that if the tax threshold to increase to 3,000 yuan, the Chinese will be the majority of wage earners do not have to pay tax, but reduce the tax burden on individuals is not much to expand domestic demand to stimulate the consumption of limited practical effect, and the taxpayer's awareness of the tax will be watered down, the actual operation of the system will have a negative impact.

  China's personal income tax in September 1980 at the beginning of charge, when the threshold is 800 yuan, then raised three times last year, from March 1 to the current 2,000 yuan. Statistics show that in 2008, China's personal income tax completed 372.2 billion yuan, a tax to total tax revenue reached 6.4 percent, tax revenue has become the fourth largest taxes, in some areas has leapt to the local tax revenue second, to become the main local source of revenue.