Although five days ago China for the fourth time increased the personal income tax threshold - from 1600 yuan/month to 2000 yuan/month - this standard was still questioned by representatives at the National People's Congress. Representative Liu Chuanzhi, president of Legend Holdings Corporation, said yesterday afternoon that the individual income tax threshold should be adjusted to 3000 yuan, and if possible, preferably to 5000 yuan.
Representative Liu Chuanzhi explained his suggestion with three reasons. First, the national economy needs to be driven by consumption, and people with an income of 3000 yuan are precisely the main consumer group. Raising the individual income tax threshold is equivalent to increasing the income of this group, which will inevitably increase consumption; secondly, the government emphasizes that rising prices should not affect the lives of middle- and low-income groups, and raising the individual income tax standard is a good way to provide directional subsidies; in addition, the state finances have the ability to bear the costs brought about by raising the individual income tax threshold, and the resulting stimulation of consumption can in turn increase tax revenues. "Therefore, raising the individual income tax threshold has a hundred benefits and no harm!" Representative Liu Chuanzhi emphasized.