The draft amendment to the Individual Income Tax Law was open to the public for comment. According to the data of the People's University of China, in the one-month period, more than 130,000 relevant opinions were received, which is much higher than other draft laws that solicited opinions during the same period.

In June this year, after the first trial of the Third Session of the Standing Committee of the 13th National People's Congress, the draft of the Individual Income Tax Law was officially disclosed to the public through the China National People's Congress and solicited opinions, which aroused widespread concern from all walks of life. Among the opinions of the parties, the characteristics of the adjustment of the tax threshold, the combination of the comprehensive and classified tax system, and the special additional deduction have attracted much attention.

Raise the starting point

The adjustment of the tax threshold has always been the focus of the people's attention. According to the draft, the threshold is to be raised from the current tax law of 3,500 yuan / month to 5,000 yuan / month (60,000 yuan / year).

In the first trial of the draft, some members of the Standing Committee of the National People's Congress proposed to raise the threshold to between 6,000 yuan and 10,000 yuan. In the interview, the reporter found that many office workers also believe that the monthly tax threshold of 5,000 yuan is low and should be moderately improved. However, some experts said that the threshold of 5,000 yuan per month is appropriate considering the expansion of the low-grade tax rate and the effect of new special deductions.

When China introduced a tax law in 1980, it set a threshold of 800 yuan per month. After that, it experienced three upward adjustments in 2006, 2008, and 2011, and then raised it to 1600 yuan per month, 2,000 yuan per month, and 3,500 per month. yuan. In recent years, with the increase in the income and consumption level of the people, the call for raising the threshold for taxation has become higher and higher.

In fact, although the draft proposed a threshold of 5,000 yuan per month, it is not without change. 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 Standing Committee of the National People's Congress finally raised the threshold to 3,500 yuan.

Tax reform reflects progress

In addition to raising the threshold, the draft also proposed a syndrome tax on four labor incomes, including wages and salaries, labor remuneration, remuneration and royalties. According to Zhang Bin, director and researcher of the Tax Research Office of the Institute of Finance and Economics of the Chinese Academy of Social Sciences, this is the biggest highlight of this revision.

The current tax law adopts a method of classified taxation, which divides taxable income into 11 categories and implements different taxation methods. "And the syndrome is a combination of some taxable income, and a uniform excess progressive tax rate is applied according to the total income. For those who have a lot of labor income, the tax burden will increase through this reform. Compared with the classification and collection, the syndrome is more conducive to the realization of the amount of tax, and better promote social equity." Zhang Bin told reporters.

Zhang Bin said that the comprehensive tax system has always been the clear direction of reform of China's individual tax. Nowadays, the tax reform has finally taken a crucial step in the transition from a classified tax system to a comprehensive tax system. However, Zhang Bin also admitted that there are still some disputes around the tax reform, and it is necessary to strive for the greatest consensus on the basis of clarifying the reasons behind it.

“For example, is the capital gains project included in the comprehensive income range applicable to the excessive progressive tax rate? In the face of international tax competition, is China’s highest marginal tax rate to be lowered? These debates are behind the differences in the importance of fairness and efficiency.” Zhang Bin said .

Special deduction is not a "single tax"

In real life, in addition to the basic cost of living, different families and individuals face different costs. In order to reduce the burden more specifically, this special law also set up a special additional deduction for the first time.

The draft increases the basic cost of comprehensive income reduction, clarifies the current special deductions for personal basic old-age insurance, basic medical insurance, unemployment insurance, housing accumulation fund, and other deductions determined in accordance with the law, and increases the expenditure on education for children. Continuing education expenditures, medical expenses for major illnesses, interest on housing loans, and housing rents are special deductions that are closely related to the lives of the people.

Zhang Bin said that the increased special deductions take into account the differences in personal burdens, more in line with the basic principles of personal income tax, and are conducive to tax system fairness, which is a very significant tax system optimization measure.

However, many netizens interpret special deductions as "single tax" on the grounds that single persons do not have children's education and other expenses, and will pay more taxes than married people.

For this statement, Shi Zhengwen, director of the Center for Finance and Tax Research at the China University of Political Science and Law, said that it is reasonable for families raising children to be deducted appropriately because of the heavy burden. However, some other special additional projects other than this do not distinguish between single or married, such as continuing education expenditure, major illness expenditure, housing loan, rental rent and other items, which every taxpayer may enjoy.

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