Threshold to 1600 yuan wage earners is expected to offload 30 billion annually

Tax threshold is negative for 1600 yuan will be announced on Thursday, but the industry generally believe that the Ten Session of the Standing Committee of the National People's Congress adopted the draft amendment to the individual income tax law, the possibility of a large eighteenth. Once the tax threshold is set at 1600 yuan, then the annual wage earners can thus reduce the burden of $30 billion. 1600 yuan threshold number of suspense, according to the reporter, the second instance, a tax threshold raised to $1600 has been recognized by the majority of people. To participate in the discussion of the members that the personal income tax payroll deduction of legislative hearings held standard fully reflects the legislative spirit of people-oriented, respect for public opinion, on the basis of the scientific and reasonable deduction standard. As of press time reporter, sina on the number of appropriate tax threshold, a total of 513069 people participated in the survey, of which, 65.35% of people in favor of a tax threshold set at $1600 -2000. Some members of the Standing Committee believes that the standard deduction increased to 1600 yuan, can better solve the basic living expenses of actual heavier burden on low-income persons lack of pre tax deduction, more conducive to the growth and basic living expenses to adapt to the trend, the prospective legal standard is more appropriate. Yang Zhiqing, vice president of the school of finance, Central University of Finance and Economics, said, the possibility of 1600 yuan is relatively large, and the cost of the amount of re adjusted to the possibility of $1800 -2000 unlikely. Because in the tax law amendment on people not only consider the interests of taxpayers, while also taking into account the national fiscal revenue capacity, and 1600 yuan is a balance between the two. The industry generally believe that the tax threshold raised to 1600 yuan, little impact on China's fiscal revenue. At least 20 yuan per month, according to statistics, in 2004, China's personal income tax amounted to $180 billion, of which 65% came from the working class. Before the tax threshold is proposed to raise to 1500 yuan, the industry estimates, the finance may therefore reduce the income of $20 billion, that is, the wage earners to reduce the tax burden of $20 billion per year. Then, the threshold from 1500 yuan to raise to $1600, how much work can reduce the burden? Yang Zhiqing estimates that the working class will therefore reduce the burden of about 30 billion yuan, working-class taxpayers will benefit from. Yang Zhiqing introduction, after deducting the cost of adjustment to 1600 yuan, the monthly income of $-3000 in the working class to benefit from the maximum 2000 yuan. In Beijing, for example, the cost of deduction from 1200 yuan to raise the standard of $1600, the taxpayer can pay at least a monthly tax of $20. For example, Beijing public Wang made the wage income of 3000 yuan, the personal commitment of unemployment insurance, housing provident fund payment of basic pension insurance, medical insurance, a total of 400 yuan, the deduction of expenses for 1200 yuan, while Wang monthly taxable income = 3000-400-1200 = 1400 yuan. Personal income tax payable tax = 1400 * 10%-25 = 115 yuan. If the tax threshold raised to 1600 yuan, the king of the taxable income = 3000-400-1600 = $1000. Personal income tax payable tax = 1000 * 10%-25 = 75 yuan. After the adjustment of the tax threshold, Wang can pay a monthly tax of 40 yuan a year, less than a year to pay a tax of $480. The improvement of the tax threshold for low-income people have little effect. For example, raising the threshold to 1600 yuan, the monthly income of 10000 yuan per month to Beijing taxpayers pay less tax 70 yuan, but 70 yuan for a monthly income of million people is not worth mentioning. High earners will no longer "escape" Yang Zhiqing believes that the reform of the personal income tax is mainly for tax deduction for the cost of the most extensive impact, taxpayers concern the biggest problem for reform, and not related to the issue of tax reform. However, the implementation of comprehensive and classification of personal income tax system is the direction of China's tax reform, the current goal has been included in the "11th Five-Year plan" proposal. Yang Zhiqing said that China's tax reform is the principle of a mature, the introduction of a". At present our country implements the combination of comprehensive and classification of personal income tax system conditions are not ripe, because there is a lot of personal income tax through the cash flow can not control, but with the improvement of the credit system and other infrastructure work, combination of comprehensive and classification of the tax system can be introduced in 5 years. By then, high-income earners want to escape the tax is difficult.