“The tax reform plan will be a package project, and some incomes will be taxed in a comprehensive manner, which may involve adjustment of the tax rate. The syndrome management model will also involve the issue of individual declaration. As for when the tax reform will fall, it depends on the legislative process and Social expectations." On May 25, Premier Li Keqiang chaired the plenary session of the State Council and delivered an important speech. At the meeting, Li Keqiang emphasized that it is necessary to promote the steady growth of residents' income and promote the increase of farmers' income through multiple channels. Deepen the reform of personal income tax and establish a taxation system that combines comprehensive and classified. Support social forces to increase the supply of services such as medical care, old-age care, education, culture, and sports, and continuously meet the growing diversified consumer demand of the people. The 21st Century Business Herald recently learned from authoritative sources that relevant parties are actively studying and formulating a tax reform plan. The amendments to the tax law are expected to enter the legislative process relatively quickly. The goal is to expand domestic demand? The reform of taxation and classification has been proposed for more than ten years, and the outside world has been waiting for a long time. "A tax reform is expected to enter the relevant legislative process this year. This time it will be a combination of comprehensive and classified reforms. It is also necessary to discuss which incomes will enter the comprehensive income. The individual tax reform plan will be a package of projects, and some incomes will be taxed in a comprehensive manner, which may involve tax rates. The adjustment; the syndrome model will also involve the issue of individual self-declaration. As for when the tax reform will fall, it depends on the legislative process and social expectations." Liu Jianwen, a professor at Peking University Law School, told the 21st Century Business Herald. From the current background, the acceleration of the tax reform is directly related to the central government's requirement of "expanding domestic demand." On April 23 this year, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and economic work. The meeting proposed that we must first strive to lay a solid foundation for the "three major battles". At the same time, we must adhere to the positive fiscal policy orientation, maintain a stable and neutral monetary policy, focus on guiding expectations, and combine the accelerated adjustment structure with the continuous expansion of domestic demand to maintain the macro economy. Smooth operation. The signal of “continuing the expansion of domestic demand†has drawn market attention. The relevant departments are indeed actively deploying policies to expand domestic demand. From April 23 to 24, the Ministry of Commerce held a working conference on implementing the “Consumer Upgrading Action Planâ€, arranged the key work of the 2018 Consumer Upgrading Action Plan, and proposed to cultivate new growth points and create new kinetic energy in the fields of high-end consumption and so on. At the end of April, Chen Yin, a spokesperson for the Ministry of Industry and Information Technology, said at the press conference of the State Council that it would promote the expansion and upgrading of information consumption and formulate guidelines for the development of information consumption. The measures to further expand imports this year, including lowering import tariffs on some consumer goods, drugs and automobiles, will undoubtedly also expand domestic demand. The more common analysis believes that this "expanding domestic demand" will be different from the previous idea of ​​relying on infrastructure and real estate. Li Xunlei, chief economist of Zhongtai Securities, told reporters of the 21st Century Business Herald that this expansion of domestic demand is expected to show structural characteristics, with a focus on expanding manufacturing investment, boosting consumption, and reducing corporate burdens and increasing household income. On May 25, Li Keqiang emphasized at the plenary session of the State Council that it is necessary to promote the steady growth of residents' income and increase farmers' income through multiple channels. Deepen the reform of personal income tax and establish a taxation system that combines comprehensive and classified. Support social forces to increase the supply of services such as medical care, old-age care, education, culture, and sports, and continuously meet the growing diversified consumer demand of the people. As part of the tax reform, the State Council has deployed this year. At the National People's Congress, Li Keqiang made a government work report and proposed raising the personal income tax threshold, increasing the special expenses deduction for children's education and major medical care, and rationally reducing the burden, encouraging the people to increase their income through labor and move toward prosperity. Shi Yaobin, the then deputy minister of the Ministry of Finance, also pointed out that this year will also improve the taxation taxation model, which will transform the current classification and collection model into a tax system combining “integration and classificationâ€. In the future, labor income, including wages and salaries, labor remuneration, and remuneration, may be taxed on a yearly basis. After the comprehensive income, the threshold is determined again, which can better reflect the positive effects of tax adjustment income distribution and promotion of social equity. How to look at the lower-than-expected demand in April The reform of the income distribution structure is conducive to expanding consumption. Li Keqiang stressed at the plenary session of the State Council on May 25 that "maintaining development is the top priority and keeping China's economy running smoothly. The current government shoulders the important statutory duty to maintain sustained and healthy economic development and ensure that the economy operates in a reasonable range. Continuously improve the quality and efficiency of growth, strive to promote high-quality development in maintaining medium- and high-speed growth, and maintain medium-to-high-speed growth in promoting high-quality development.†From the April data, the growth rate of industrial added value above designated size is picking up. The service industry production index, total retail sales of social consumer goods, and investment growth have declined. In addition, the employment situation is improving. The unemployment rate in the national urban survey in April and the urban unemployment rate in 31 major cities have all returned below 5%. Regarding the data analysis and analysis in April, the parties have differences. The decline in consumption and investment data in April, especially the consumption data was lower than market expectations. Some market institutions bluntly said that the demand side was weak in April, indicating that the economy has downward pressure. Liu Aihua, spokesperson of the National Bureau of Statistics, said that when judging the economic situation, especially when judging the short-term economic situation, the reference system should be multi-faceted and multi-angled. Don't just focus on the one-month change, and analyze it from a longer trend. In April, the overall economic operation continued to develop steadily and steadily. The employment situation was positive. The macroeconomic situation was basically stable. The new kinetic energy further strengthened its economic support. The rapid growth of corporate income and government revenue reflected the improvement of efficiency. “The total retail sales of social consumer goods cannot fully reflect the real consumption situation, the proportion of services in consumption is gradually increasing, and the statistics of online shopping data are insufficient. The real consumption data is underestimated. The inventory of industrial products is declining in April, reflecting the consumption in April. It may be so low.†Zhu Baoliang, chief economist of the National Information Center, told the 21st Century Business Herald. Liu Yuanchun, vice president of Renmin University of China, told reporters in the 21st century economic report that China's GDP growth rate shift will bring about a shift in national income growth, which will naturally affect consumption growth. To ensure consumption, we need to make a fuss about the income distribution structure. We must adjust the two-level differentiation of income through taxation policies, and strengthen public services such as public health care and social security to protect low-income groups. He further stated that there was some new signal in April, the demand side was relatively weak, and the supply side was not bad. The rectification of the financial order has led to an increase in the financing costs of SMEs, and the reorganization of local debt has caused local fiscal expenditures to shrink, which has a certain impact on demand. Liu Yuanchun said, "We judge that weak demand is an intermediate phenomenon and may continue into the middle of next year. It can be eliminated by simply using short-term policy hedging. The current employment situation is good, and the reform products are in a benign and controllable range, emphasizing the bottom line. On the basis of management, the focus should still be on restructuring and reform."
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