Nancy3 Fri Sep 09, 2011 5:37 pm
Name: Nancy
News link:http://english.cntv.cn/program/bizasia/20110901/110289.shtml
Assignment: Starting from September 1st, a new tax threshold of 3500 yuan will be used in calculating the monthly personal income tax of wage earners, exempting 60 million people from paying personal income tax from that date onwards. It's undoubtedly good news for most people, especially for the middle-income groups. For the non-locals with the potential to buy properties, if his/her monthly income is below 3,500 yuan, from Sept. 2011 he/she will have no certificate of paying personal income tax which is required to buy a house in many cities in China. Such as my mother, she earns less than 3500 yuan per month, so she will no longer pay the personal income tax. There is a big change welcomed by most people
China amend this tax law will lower the taxable population by 70 percent, from 84 million to 24 million, accounting for around 1.8 percent of China's entire population.
The state employees in China declines from 28% to 8%, the number of benefits up to 600000000 because of this new law. This new law intends to increase the people’s salary, and then encourage individual consumption further.
I think this solution is timely to today’s economy situation, which calls make the best of both worlds.