The 11th National People's Congress Standing Committee's 11th Chairman's Meeting was held recently. The 5th Session of the 13th National People's Congress Standing Committee was held from August 27 to 31. It is proposed to review the draft amendments to the Individual Income Tax Law.
This will be the second trial of a draft amendment to the tax law. This tax reform is related to the interests of everyone. The people are very concerned and expect a lot.
The China National People's Congress Network showed that the draft amendments to the tax laws have collected more than 130,000 opinions, which is much higher than the other three draft laws for soliciting opinions during the same period.
Can the 5000 yuan threshold be raised?
On June 19, the "Improvement of the Individual Income Tax Law (Draft)" was submitted to the 13th National People's Congress Standing Committee for initial review. Then on June 29th, the draft publicly solicited opinions from the society for one month, and received more than 130,000 opinions.
According to the draft, the tax threshold is proposed to be raised from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year). However, the connotation of the threshold has changed. The previous 3,500 yuan threshold is for wages and salaries, and the new threshold is for wages, salary income, labor compensation income, remuneration income, and franchise use. The four comprehensive income of the fee.
In the stage of public solicitation of opinions, many people think that the threshold of 5,000 yuan is still low, and it is recommended that the call for further increase to 7,000 yuan or even 10,000 yuan is very high.
Yin Zhongqing, a member of the Standing Committee of the 13th National People's Congress, said that the current economic development needs to expand domestic demand. In the overall income pattern, the proportion of household income is gradually decreasing. Increasing the proportion of household income to expand consumption is China's economy and society. The urgent need to solve the problem. In this sense, it is recommended to raise the threshold to 6,000 yuan or 7,000 yuan.
From the outside world's point of view, as the income of residents continues to increase, the threshold for further improvement is also necessary. Statistics from the National Bureau of Statistics show that the average wage is rising. In 2017, the average annual wage of non-private employees in urban areas in China is 74,318 yuan, and the average monthly salary is 6,193 yuan.
Referring to the previous increase in the threshold, the threshold is not impossible to increase on the basis of 5,000 yuan. In 2011, the draft tax was initially proposed to raise the threshold to 3,000 yuan. After listening to the opinions of all parties, the threshold was finally raised to 3,500 yuan.
Can the threshold establish a dynamic adjustment mechanism?
In addition to further raising the threshold, the public's other expectation is to establish a normal adjustment mechanism for the tax threshold, which can be dynamically adjusted with the income and price levels of residents.
The tax threshold has been adjusted three times since it was determined to be 800 yuan in 1980. In 2006, it was raised to 1,600 yuan, in 2008 it was raised to 2,000 yuan, and in 2011 it was raised to the current 3,500 yuan.
After the adjustment in 2011, the tax threshold has not been raised for nearly seven years. The tax revenue and taxpayers are increasing.
According to statistics from the Ministry of Finance, from January to July this year, personal income tax was 922.5 billion yuan, a year-on-year increase of 20.6%. This data has exceeded the annual tax revenue of 861.8 billion yuan in 2015.
The Shanghai Finance and Law Research Institute's Tax Law Amendment Discussion Group recommends that at the beginning of each year, the State Council shall determine the deduction standard for each year based on the price level and income level, and submit it to the National People's Congress or its Standing Committee for review and approval.
Jia Kang, chief economist of the China Institute of New Supply Economics, said that setting a tax threshold as a mechanism that is linked to the price level and automatically adjusted is a trend that can be considered. Such as every 3 years according to the price index automatically adjusted.
Can I increase the cost of supporting the elderly and deducting the child care fee?
Another highlight of the draft is the first increase of special supplementary deductions that are closely related to the lives of the people, such as children's education expenditure, continuing education expenditure, major medical expenses, housing loan interest and housing rent.
In other words, for each tax year's income, first reduce the tax threshold, and then subtract the special deductible items such as basic pension insurance, basic medical insurance, unemployment insurance, and housing accumulation fund, and then subtract the above special deduction. Then pay taxes. In this way, not only will the burden be more negative, but also more fair.
However, in the process of soliciting opinions, many people think that the intensity of special additional deductions can be even larger, and the scope can be broader.
The Shanghai Finance and Law Institute's Tax Law Amendment Discussion Group recommended that the support for the elderly should be included in the special additional deduction. China has entered an aging society, increasing the deduction of support for the elderly, and is conducive to carrying forward the traditional "filial piety culture" that loves the elderly and respects the elderly, and increases the concern for the rising elderly population.
The reporter noted that during the review of the draft, some members proposed to increase the deduction of “the expenses for the care of the elderly and infants and young children.†The reason is that 90% of the elderly are home-based, so the cost of supporting the elderly should be considered for deduction; The cost of feeding infants from 0 to 3 years old should also be considered for deduction.
Can high income earners actually pay more taxes?
One of the important roles of a tax is to mediate income distribution and promote social equity. To reduce the burden on the middle and lower groups, in addition to further raising the threshold, lowering the tax rate is especially critical.
The draft optimizes and adjusts the tax rate structure, expanding the 3%, 10%, and 20% three-grade low-tax rate, doubling the 3% tax rate, and reducing the tax rate of the current tax rate of 10% to 3%; The rate of the 10% tax rate is greatly expanded. The current tax rate of 20% and the current tax rate of 25% are reduced to 10%; the current tax rate of 25% is reduced to 20%.
Tax rate table in the draft
Liu Kun, Minister of Finance, pointed out in the draft statement that taxpayers who have obtained comprehensive incomes such as wages and salaries have a different degree of tax burden. In particular, the tax burden of income groups below the middle level has dropped significantly, which is conducive to increasing residents’ income and strengthening. Spending power.
The tax burden of income groups below the middle level will drop significantly, but the public is also concerned about whether it can really allow high-income groups to pay more taxes.
Some experts have told reporters that wages and salaries are paid by the unit and cannot be evaded. Others have escaped space. Under this circumstance, the private enterprise boss can not give himself a high salary, and the rich can reasonably avoid tax.
Some people think that the draft will be rated at the highest level of tax payment of 960,000, lack of adjustment of the level of income of 10 million yuan and 100 million yuan, it is recommended to set the personal income tax rate to 10, an increase of 1 million to 10 million, a From 10 to 50 million, 50 to 100 million tax rates, to promote income distribution more rational and orderly.
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