desperado123 Post time 2012-6-18 21:13:12

China should raise income tax threshold to 5000 yuan

A former economist with the Bureau of State statistics said that China should pin the income tax threashold at 5,000 yuan from the current 3,500 yuan. It's a good way to keep the ecomony stable as the tax cut would spur the development and consumption.   Do you think it's time to raise the tax threshold since China made the swift in Sept. 2011? how much should it be in you mind, 4000, 5000, or 6000?

Everynowhere Post time 2012-6-18 22:24:57

A former economist with the Bureau of State statistics said that China should pin the income tax threashold at 5,000 yuan from the current 3,500 yuan. It's a good way to keep the ecomony stable as the tax cut would spur the development and consumption.   Do you think it's time to raise the tax threshold since China made the swift in Sept. 2011? how much should it be in you mind, 4000, 5000, or 6000?


I'd set it to 5000 or 6000 Yuan for various reasons:

1) Consumption would increase. China would rely less on the west to buy its products and the economy would grow.

2) Lower working class families would be better off like this. There would be less social tensions and China would get more stable.

3) Chinas rule of law would be improved. Setting the threshold to higher amounts would significally decrease the amount of people that need to be checked on, leaving more ressources to check the bigger fishes. Tax skippers could be caught more easily and perpetrating the law would be harder. Chinese government would become stronger, people would trust China more and investments would increase, further fostering economic growth (although only by a small margin).

desperado123 Post time 2012-6-19 15:34:17

I would spend 6-7k per month living in Beijing nowadays. Thus I wanna the threshold would be at 6000 or more.

Franticfrank Post time 2012-6-19 20:52:57

This post was edited by Franticfrank at 2012-6-19 23:26

Interesting idea. But does development and consumption really need further stimulus in China? Perhaps if the real estate bubble shows instability, it might be a good idea. As desperado says, statistics show the cost of living in China is growing considerably. Maybe its a better idea to wait a bit longer.

zglobal Post time 2012-6-20 00:41:18

magicbaron Post time 2012-6-20 23:06:24

6000

MisterPanda Post time 2012-6-21 08:21:28

6000 seems fair
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