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Chinanews, Beijing, Nov. 5 - The China Youth Daily Social Investigation1 Center and Sina.com Information Center recently carried out a poll about income tax. Among the 3,698 people polled, 97.0% think that the current taxation2 threshold for individual income tax is inappropriate. The same proportion of people hopes that China can raise the taxation threshold.
"Imposing3 income tax should be regarded as a means to protect low-income earners. However, at present in many coastal4 cities, migrant workers can earn more than 1,600 yuan a month (which is the minimum level for China to impose income tax). Normally, China should protect the interests of these people. However, based on the current taxation law, they also become a group subjected to income tax payment. So, it can be seen that the current taxation threshold for individual income tax is too low," some respondents say. Some of the respondents compare the current individual income tax threshold with that in 1981 to support the above view. In 1981, a worker's average monthly salary was 60 yuan, while the individual income tax threshold at that time was 800 yuan, or 13.3 times that of a worker's average monthly salary. Now, the individual income tax threshold has been raised to 1,600 yuan and, according to the figures released by the National Statistics Bureau on October 29, during the first nine months of this year, a city worker's average monthly salary was 1,853 yuan. So the current individual income tax threshold is only 86.3% of the worker's average salary. The basic function of the individual income tax is to narrow the gap between the rich and the poor. If the imposing threshold is set at a too low point, it might lead to the opposite - the wage earners will become the main target of tax payment while the rich can find lots of ways to avoid it, comment some people. In recent years, many people working in cities, especially the middle class, feel that they are being exploited. "We don't know how much we should earn in order to survive. Everything is becoming more expensive than before. CPI is growing and housing price is rising all the time. Even if you have a lot of money at hand, you dare not say that you have earned enough and you can rest at ease now. This is because if you don't keep working hard, you might be relegated5 to the low-income class at any time!," some people once said so when describing the life of the middle class. We propose that China should emphasize more fairness at initial distribution. As a way to achieve fairness during redistribution, the government should consider raising the individual income tax threshold, since people's living costs have increased substantially more than before, the respondents say.
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