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What are the advantages and disadvantages of China's current personal income tax?
The present situation of individual income tax in China

Personal income tax is personal? Cave natural person? Income tax on all income from snow. Personal income tax was levied in China from 1980, which was the starting point of 800 yuan every month. 1980 collected 654.38+million yuan, which soared to 245.232 billion yuan in 2006. It has increased by 245 times in 26 years.

Although China's personal income tax has developed rapidly and made great achievements, compared with the international community, the gap is still very large. In 2006, China's personal income tax only accounted for about 6% of the total tax revenue in that year, far lower than that of developed countries and most developing countries. According to the International Monetary Fund's Yearbook of Government Finance Statistics, the average proportion of individual income tax in the total tax revenue of 93 developing countries is 10.92%, and 2 1 industrialized countries is 29.04%. This shows that there are still many problems in the tax system and collection management of personal income tax in China.

The individual income tax law was founded in Britain from 1799, and it has been developed and improved for more than two centuries. In the United States, Britain, Australia, Canada and other countries, in 2006, the average proportion of personal income tax in their total tax revenue exceeded 50%.

From the perspective of income scale, personal income tax has become the fourth largest tax category in China and an important source of fiscal revenue. 800 yuan's personal income tax threshold has not changed for 25 years. In 2006, the threshold was raised to 1.600 yuan. Experts and public opinion have many objections to this and think that the threshold is still low. Various social groups are calling for reform.

The United States is recognized as one of the countries with perfect tax system in the world, and high-income earners are the main payers of personal income tax in the United States. According to statistics, the annual tax paid by the group with an annual income of more than $654.38 million accounts for more than 60% of the total personal tax in the United States.

In our country, the situation is just the opposite. According to statistics, 80%-90% of the total deposits in China 16 trillion in 2006 were rich people with less than 20%, but their personal income tax was less than 10% of the total. The tax burden of the rich in China should be the lightest in the world. But now, this situation has not changed, but has intensified!

At present, the function of personal income tax in regulating personal income and narrowing the gap between the rich and the poor is "basically ineffective". The reason is that 1600 yuan's personal income tax threshold is set on the low side. The rich and ordinary workers pay taxes out of proportion to their wealth.

Now 65% of the tax revenue comes from the working class, and the working class has become the main taxpayer. In this way, it will naturally feel unfair in the minds of taxpayers. This phenomenon is being questioned by more and more people, which is contrary to the original intention of setting up personal income tax to adjust the gap between the rich and the poor.

Where are the coordinates of the tax threshold?

The author's friend Xiao Zhang, a native of Tangshan, Hebei Province, worked in a foreign-funded enterprise near Beijing International Trade Center after graduating from university. My girlfriend is from Ningxia, a college classmate and an employee of a computer company in Zhongguancun, Beijing. Their per capita monthly income is 5000 yuan, and their annual income level is 120000 yuan. On the surface, they seem to be rich and enviable senior white-collar workers, but in fact they have become a new poor group in the city. According to Beijing, they are the "moonlight clan", that is, the group that spends their monthly salary.

Let's take a look at their total monthly expenses: the rent is more than 2000 yuan; Meals1above 800 yuan; Clothing and mobile phone, broadband fee1above 500 yuan; Human relations 1000, support for the elderly 1000, transportation costs more than 800; Other expenses such as seeing a doctor 1000 yuan. Go back to your hometown to visit your parents at the end of the year, get rid of the travel expenses and buy some gifts. I will spend all my income for a year and live a tight life.

You know, they have reduced their expenses to a minimum. In a typical high-consumption city like Beijing, although they have a college degree and a skill, they are still a new generation of poor people. With this income, personal income tax was deducted in advance by the unit when paying wages. After deducting taxes, their income is naturally less than this.

After three years of marriage, they dare not have children. The rented house is just an old building, and the bedroom is less than 10 square meter, sharing the bathroom and kitchen with others. Faced with the high housing price of tens of thousands per square meter, they dare not even think about buying their own houses. Usually go to the farmer's market to buy food, not to buy whatever you want, but to see which ones are the cheapest at present. It is conceivable that the average monthly income in Beijing1what kind of life should ordinary people in 600 yuan live?

Beijing-Tianjin-Tangshan area, Yangtze River Delta and Pearl River Delta are the most developed areas in China, and their income level is far ahead in the country. In Beijing, people have to live in poverty if they earn 5000 yuan. It is conceivable that what can 1600 yuan do in other regions? Usually just to maintain food and clothing!

According to the latest data from the National Bureau of Statistics, in 2006, the per capita annual income of urban residents in China was 1 1759 yuan, and the monthly income of most urban working-class people exceeded 1000-3000 yuan, but western cities may not reach this level. This little money is only enough to maintain an ordinary livelihood: supporting the elderly, raising children, buying a house, seeing a doctor and other expenses. Thanks to this salary, the working class pays personal income tax, accounting for the bulk. It is a typical robbing the rich to help the poor. Some experts pointed out that it is more reasonable to set the personal income tax threshold at 8,000 yuan to 1 10,000 yuan per month.

The richer people are, the less they pay taxes.

Hu Angang, a professor at the School of Public Administration of Tsinghua University, quoted domestic and foreign data as saying that among the people who pay personal income tax in China, the first is the working class, the second is foreigners in China, and the third is private entrepreneurs and self-employed. The conclusion of the analysis is that the tax burden of every farmer in China is higher than that of urban people. The per capita annual tax in cities is about 37 yuan, and that in rural areas is about 90 yuan. In cities, the tax burden of low-income people is higher than that of high-income people. In China's tax law, the "progressive system" that should pay more income has become a "regressive system" in front of the highest income group. The tax burden of the highest-income families in China is almost the lowest in the world.

Speaking of "rich people" paying taxes, we will naturally think of the star tax case that caused a sensation in the entertainment circle a few years ago. During the period of 1989, Mao Amin, a popular singer, evaded taxes, and was pursued by public opinion all over the country, resulting in his personal image plummeting and almost disappearing from the music scene. Finally, Mao Amin was fined three times for tax evasion. In 2002, the film actress Liu Xiaoqing, known as "Billionaire Sister", was arrested for tax evasion. Only verified Liu Xiaoqing companies involved in tax evasion amounted to tens of millions of yuan.

People compare the list of "Top 100 Taxpayers of Private Enterprises in China (Mainland China)" with the list of China's richest people published by Forbes, an authoritative American financial magazine. The result is surprising: only four of the top 50 "rich people" entered the top 50 taxpayers at the same time!

In 2006, of the total bank deposits of China 16 trillion yuan, about 15 trillion yuan came from the rich. They only account for less than 20% of the total depositors, but their personal income tax is less than 10% of the total personal income tax. This is the reality of paying taxes in China!

Some singers and movie stars repeatedly evade taxes, with a total of one million yuan, but they can still appear on the stage frequently. In foreign countries, such singers and movie stars have long been ruined and even jailed.

According to the latest data from State Taxation Administration of The People's Republic of China, China, in 2006, the national tax revenue was 3,763.6 billion yuan. If measured by the international average level of individual tax accounting for 15% of total tax, China's personal income tax should be 564.5 billion yuan, that is to say, China's personal income tax has lost 320 billion yuan in vain this year.

Today, China is becoming one of the countries with the biggest gap between the rich and the poor, and the country with the fastest concentration of national wealth to the rich, making China the country with the largest wealth occupied by the rich in the world.

According to the report of Boston Consulting Group, there are about 654.38 million+500,000 wealthy families (families with annual financial assets exceeding 654.38 million dollars) in Chinese mainland. The figures provided by Merrill Lynch, a well-known multinational economic consultancy, are as follows: In 2006, there were 367,000 rich people in China whose personal financial assets exceeded 465.438 billion yuan (about 34 million yuan), and their total financial assets exceeded 1.2 trillion US dollars.

China has entered the 29th year of reform and opening-up, and the gap between the rich and the poor has become the biggest problem of deepening reform and opening-up and sustainable development in China. China must curb the extremely rapid and excessive concentration of social wealth to a few rich people, and the best way to solve this problem is taxation.