Improve the "threshold" Why not a tax reform direction?

Two of the country, improve tax "threshold" the voice once again become the focus of attention and play Frozen Games discussion. Finance Minister Lou Jiwei said recently that a simple increase tax "threshold" is not fair, not reform. "Thirteen Five" Plan draft clearly accelerate the establishment of comprehensive and classified personal income tax system combination. "Xinhua Viewpoint" correspondent interviewed many representatives of members and industry experts, the interpretation of tax reform focus. Improve the "threshold" contrary to fair According to the personal income tax law, 11 wages and salaries, production and operation of individual businesses, labor remuneration, royalties, property leasing and other taxable personal income tax. Among them, the wage and salary income in order to balance the amount of 3500 yuan monthly income after the deduction of expenses for the taxable income, which is commonly known as 3500 yuan tax "threshold." Long-term concern a tax reform CPPCC National Committee members, the managing partner of accounting firm Ruihua from Lian said that personal income tax adjustment of income distribution, an important channel to promote social equity, "high-income earners to pay more, low-income people pay less or not pay "in order to reflect the fair tax. Simply raise tax "threshold", the high-wage income groups reduce the amount of tax more, indeed contrary to the fair. Insiders estimated that the current monthly salary of 5,000 yuan per month to pay employees a tax 45 yuan; monthly income of 20,000 yuan to pay 3120 yuan a tax. When the "threshold" raised to 5000 yuan, the former do not pay a tax, reducing the $ 45 tax; the latter a tax payment amount becomes 2745 yuan, a tax reduction of up to 375 yuan. Therefore, improving the tax "threshold", the low-income groups pay less tax despite, but the case of the progressive tax rate, the higher income groups pay less tax the more it will play in the regulation of income distribution to be counterproductive. "Establishment of a tax 'threshold', aims to enable taxpayers living and working costs and other basic daily expenses exempt from taxation, tax reform to reflect the focus of spending taxpayers' fundamental differences." School of Finance, Renmin University of China Professor Zhu Qing said, for example, two employees working the same monthly income of $ 10,000, an employee needs to raise support for the elderly or children, no other maintenance expenses raise both equally evident unfair tax, "simply increase 'from feature points' is obviously not the best optimization program. " He said. A grass-roots local tax department said, residents of current income structure has undergone major changes, mainly from past wage income, wage income share fall to now, financial, rent and other property income increased significantly. But simply to improve wage income "threshold" of the "one size fits all" type of adjustment, can not reflect differences in expenditure "personalized", is difficult to play to narrow the income gap between social action, "focusing on tax reform must change the tax system." The direction of tax reform will make what groups benefit? Lou Jiwei said that the current tax reform program has been submitted to the State Council. In accordance with the requirements of National People's Congress and the State Department planning legislation this year will draft a comprehensive classification of a combination of the Personal Income Tax Law and the NPC submitted for consideration. Many industry experts said, despite the tax reform program has not been announced, but the proper merge income tax classification, improve the standard tax deduction will be the focus of reform both. Chinese Academy of Sciences researcher Zhang Fiscal birth, said merging the resulting tax classification, is that the play Barbie Cooking Games existing 11 classification obtained appropriate merge, the resulting recurring labor wage and salary income, labor remuneration determined to merge comprehensive income; interest income dividends , property rental income and other capital income is still classified as income. "Improve the standard tax deduction is to gradually establish a '+ special basic deduction deduction' tax deduction system." Said Zhang gave birth to the current 3500 yuan, "threshold" refers to the basic wage income deduction, then the appropriate increase in education , the special deduction of medical expenses, etc., so that the special expenditure deduction into account of personalized factors individuals and their families. Zhu Qing, said the resulting merge appropriate classification reflects the taxpayer's ability to pay, simplify tax balance the tax burden. Perfect special tax deduction, make the tax into account life, education, health care and other costs imposed when taxpayers. He said: "After the reform, the same comprehensive income taxpayers with children to support than did children can be less tax, which is the international practice." Lou Jiwei said that the comprehensive tax research tax content will include deductions meet basic living first set of residential mortgage interest deduction deducting the cost of raising children, career development, re-education expenses. Industry experts said that first home loan interest, child-rearing and personal re-education and other expenses, if the final tax included within the scope of tax deduction, which means purchase loans, families with children, etc. Most of the elderly population can benefit. Such deduction "insurance policy" monthly salary of 20,000 yuan Wang, purchase price of 1.5 million yuan first set of housing, commercial loans from the bank 100 million, the repayment period of 20 years, in the month 6682 yuan the average interest rate of 2512 yuan. Under the current tax scheme, Wang per month to pay 3120 yuan a tax, if interest on home loans is deductible, he has to pay a tax 2492 yuan, compared to reduce 628 yuan. Comprehensive reform needs to be crossed a few hurdle floor? Reporters learned that, with respect to the business tax ad valorem tax turnover tax to a tax representative of the income tax, due to the need to have detailed information on tax-related income taxpayers, and other expenses to get an accurate accounting of income tax to avoid tax evasion, which tax collection and management capacity requirements higher. Grass-roots workers, tax reports, the current tax a "payroll tax" reasons, capital gains income is rent, property transfer can not be accurately accounted for. Can only take the grassroots "enterprise + paying withholding tax department to verify," the easy way, mainly for salary income wage levy a tax. As a result, lead to some business executives drive a BMW, live in villas, all food and drink, housing expenses are included in cost of doing business, a tax of "zero tax" and so on. Number of respondents deputies and CPPCC members and industry experts said that a tax reform to change the status quo "payroll tax" to regulate the order of fair taxation, in addition to defining the scope of the standard deduction, tax rates and other comprehensive income outside the top-level design, in particular the need to implement the following crossed sandaokan: - Tax-related information sharing. Chinese Academy of Social Sciences researcher Zhang Bin FINANCE strategy, said the current information society taxpayer income, household expenditure, etc. dispersed in the banking, public security, real estate, civil affairs departments, the lack of appropriate legal support is difficult to break the information silos between departments. Only by achieving cross-sectoral and inter-regional networking of tax-related information in order to establish and improve the income of natural persons and property information systems for the full implementation of a tax reform to lay the foundation. - Collection and capacity building. After landing tax reform, a lot of raising children, the first suite of interest, etc. may be required to verify the authenticity of deductible expenses, residential rental, transfer and other information required to fully grasp these tax department data analysis, investigative capacity, higher play Dora Games demands to tax evasion compression space. - Supporting systems improved. Kim Suk-jen and other NPC deputies and members believe that promoting a tax reform also need ITIN universal, tax-related information is bound, constrained credit system and other supporting sound and comprehensive policies to improve falsified fraud, illegal tax evasion costs. "Let both as individual income tax receipts obligation, but also the right to slip, so heading to become credit records of every citizen."