The feasibility of Levying Individual Income Tax on a family basis has led to heated debate between the positive and negative sides
others include the automotive industry, small and medium-sized electronics and home appliance manufacturing industry. What hinders Levying Individual Income Tax on a family basis
this newspaper wangyijun
"Levying Individual Income Tax on a family basis seems simple and reasonable, but China has a population of 1.3 billion. Allowing families to declare their taxable income will make the cost too high to implement."
"it is an international practice to calculate and levy individual income tax on a family basis, which can better reflect the fairness of tax burden and social equity. The tax department cannot use the existence of technical problems as an excuse."
recently, Liu Shangxi, deputy director of the Institute of financial Sciences of the Ministry of finance, said that "it is not feasible to levy personal income tax according to families in China at present", which has made the topic of whether personal income tax can be levied according to families hot again, and the opponents and supporters seem to have sufficient reasons
"there are two families of three. One family has only one person working, with a monthly income of 4000 yuan, and needs to pay personal income tax; the other family has three people working, with a monthly salary of 2000 yuan per person, and three people do not need to pay personal income tax. This is obviously unreasonable. Therefore, it is better to implement the tax reform based on the family as a unit and comprehensively consider the family burden sooner rather than later."
this passage comes from Jin shuoren, member of the Standing Committee of the National People's Congress. In late April, 2011, the amendment to the individual income tax law (Draft) was submitted to the Standing Committee of the National People's Congress for deliberation. Some members, including Jin shuoren, proposed that the current individual income tax collection method is unfair to taxpayers with heavy family burdens
hekeng, vice chairman of the financial and Economic Committee of the National People's Congress, said that many people's opinions on the collection of individual income tax are related to the fact that the deduction standard of individual income tax (generally referred to as the threshold of individual income tax - editor's note) is not linked to the family burden. It seems fair to set a simple amount, and tax individuals when it reaches this amount. In fact, this is not the case. After all, the actual situation of each family is very different
China has implemented the individual income tax classification and itemization method for more than 30 years, with simple procedures and easy implementation by both parties. However, the design defects of the lack of special deductions such as education, supporting the elderly and supporting children are well known, which is more prominent in the current situation of diversified personal income channels and wide income gap. Every time people attach importance to the early market cultivation of new materials and carry out the reform of the utilization tax system, the public has more discussion on the threshold of individual income tax. However, no matter what the threshold is, it is aimed at individuals, and the family population is not calculated, and the number of dependent people is not considered. In this way, the tax burden per capita varies greatly, which violates the basic principle of personal income tax - the principle of fairness
after the national two sessions this year, the relevant central departments have prepared to launch the personal information link of the national local tax system to make technical preparations for "levying personal income tax by family". At that time, a number of Finance and taxation experts said that the time is not ripe to implement individual income tax by family in China
Liu Shangxi believes that the main basis for the infeasibility of Levying Individual Income Tax by family is that taking family as the tax unit requires accurate collection of data such as total family income and family population. There are hundreds of millions of families across the country. It is basically impossible to collect total family income by means of family honest declaration, and it is even more impossible for families with gray income to declare truthfully. The measures for self declaration of personal income tax (Trial Implementation) implemented in China since 2006 stipulates that five types of situations, such as annual income of more than 120000 yuan and salary obtained in two or more places, must be self declared and taxed to the tax department. The purpose is to enable high-income taxpayers to adapt to the relevant procedures of self declaration of personal income tax and slowly establish corresponding awareness, but the implementation is not good, The willingness and standardization of individual declaration, as well as the tracking of tax authorities for missing reports, cannot keep up
in addition, it is very difficult to determine the pre tax deduction standard and family burden. In China with urban-rural dual structure, it is very difficult to accurately verify the family burden, especially in the context of such a large floating population, how to identify the concept of "family" is also very complex
Liu Shangxi also believes that the current individual income tax withholding and collection method cannot be applied according to family collection, and the collection procedure will be more complex, far beyond the current management ability of the tax department, and the individual income tax collection cost will be higher
for Liu Shangxi's statement, some scholars believe that this is only a technical problem. If the relevant departments are determined to promote the collection of individual income tax by family, it is not absolutely "infeasible". A ready-made example is that at present, it is recommended to understand the use of oily viscosity of real estate before using equipment. The purchase restriction policy of real estate is to recognize the second set of housing on a family basis. From the actual situation of the Ministry of housing and urban rural development, the central bank and the CBRC in recognizing the second set of housing on a family basis, the information sharing of all departments can be achieved. Within the framework of the current social credit reporting system, as long as local tax systems across the country link personal income tax information databases, and then tax departments and civil affairs, public security, finance, industry and commerce, social security, housing and other departments implement limited information sharing, then it is not difficult for tax departments to verify the income and expenditure of each family
Ren Maodong, member of the Standing Committee of the National People's Congress, once said that the tax collection and management department believes that there is no condition to levy individual income tax according to families at present, and the reason is not sufficient. In the "Golden Tax Project" in recent years, the state has invested a lot of money in the construction of taxpayer information platform, and technology is no longer a problem
in the view of some finance and taxation scholars who oppose the collection of individual income tax by family, the collection of individual income tax is basically withheld and remitted by units from wages. This way of collecting tax from the source is a simple operation method for both tax authorities and tax objects. If the tax is levied on a family basis, it is difficult for the tax authorities to establish a gateway like the one facing individual collection, which makes the collection of personal income tax to a large extent only rely on the consciousness of the people. In an environment where tax payment has not yet become the conscious action of the people, the tax authorities can only strengthen the tax collection force in order to ensure full tax collection, which is easy to stimulate social contradictions
in addition, a family needs to support the elderly and children. Metal fatigue strength is a property that is very sensitive to metal external defects, internal defects, microstructure and environmental conditions, so it can be considered to pay less tax. However, there is no small difference in family expenses between supporting the elderly, a healthy elderly and a perennial sick elderly. How should the tax department deal with it? If the tax department only collects taxes based on the family population without considering the specific situation, wouldn't it create a new injustice
"it cannot be said that these statements are completely unreasonable, and some difficulties do exist." Professor zhudaqi, director of the Institute of Finance and tax law of Renmin University of China, said in an interview with China Youth Daily, "levying personal income tax on a family basis is the direction of China's personal income tax system reform, which has long been a consensus. If you don't make up your mind to promote it, it will never be implemented." In his view, "any new policy is relatively rough when it is introduced. It is repaired while walking, and problems are constantly solved."
Zhu Daqi believes that if we want to really reduce the tax burden of residents, the individual income tax reform should take the individual income tax as a breakthrough, rather than focusing on the continuous adjustment of the threshold