关于英国个人所得税修订分析Analysis on the UK personal income tax amendment

Since the 2006 tax reform , along with social and economic developments and changes , increase income , consumption expenditure level of the masses also increased in 2006, revised personal income tax law is gradually revealed some outstanding issues , such as wages, salaries income tax rate structure is more complex , low -level tax caused a short distance in the low-wage , salary income tax progressivity too fast ; wage and salary income standard deduction of expenses to the residents of the low basic living a certain impact ; production and business income tax rate each file level are shorter distance , and wage and salary income tax compared to the emphasis and so on. As these issues have become increasingly prominent , tax reform is imperative.

June 30, 2011 , meeting overwhelmingly voted to adopt a decision on revising the " Personal Income Tax Law" revised " Personal Income Tax Law " came into effect from September 1 . The revision includes wages and salaries in order to balance the amount of monthly income after deducting expenses 3,500 yuan for taxable income ; wage and salary income , the applicable tax rate for the seven progressive rates of 3% -45 % of ; while adjusted operating income individual industrial and commercial household production and operating lease contract from the income tax rate level . The revision will also declare and pay personal income tax from the current seven-day period be extended to 15 days .

Modify the tax on the majority of the working class is undoubtedly a boon , but the significance of how the tax changes , whether it can really play its expected role , what with the lack of improvement in the direction worth further consideration . Significance analysis of tax reform
Although the British in 2001 to 2010 the total personal income tax collection of only about 6.7% of total tax revenue , far below the 50 % of the average level of developed countries and developing countries 20 percent of the British , but the significance of the tax changes is also very significant far-reaching , is an important symbol of the United Kingdom from the emphasis on " economic growth " to " economic development" .

Reduce the tax burden , regulating income distribution

The most direct effect of modifying the tax exemption amount and tax rates is to reduce the tax burden on low-income persons , the distribution of income . Its role mainly in the following three aspects:

Greatly reducing the burden on low-income taxpayers groups. On the one hand the standard deduction for expenses from 2000 yuan to 3500 yuan later, to reduce the burden on taxpayers in general , reflects the state due to inflation and other factors offset rising living costs , wage income tax from the current approximately 28 surface % to about 7.7% , the number of taxpayers from about 8400 to about 24 million people . This means that after this adjustment, only about 24 million people continue to pay taxes . On the other hand , by adjusting the payroll tax rate structure, the vast majority of wage income taxpayers to further reduce the tax burden . By adjusting the rate level distance , so that low-income taxpayers groups gain further tax cuts.

Modify tax burden in reducing low-income but also appropriate for high- income earners increased regulation efforts. This modification expanded the scope of tax of 45% of the maximum rate , while adjusting the high-income tax rate from grade class times and to make monthly salary of more than $ 20,000 more than high-income earners pay taxes properly . Such adjustments to some extent to achieve a " high cut " effect , help to achieve social fairness and justice , to promote economic balance, coordination and orderly development.

Reducing the tax burden on individual businesses and contractors lease operators. Tax changes made to annual taxable income below 60,000 yuan taxpayers the largest decline, with an average reduction of about 40 percent , the biggest decline was 57% , which is conducive to supporting individual business operators and contractors lease development .

Increase revenue, boost consumption

Income tax changes directly affect residents, albeit limited, but help boost consumer confidence.

First, the deputy director of the Ministry of Finance Tax Policy Department , said Wang Fan , the revised full-year reduction in tax revenue of about 160 billion yuan , of which raise the standard deduction for expenses and adjust payroll tax rate from secondary level to bring about 144 billion reduction yuan , accounting for 46% of 2010 personal income tax wage income . From these figures we can see that the increase in after-tax income , but low-tax and pre-tax income of an impact . For example , the U.S. study found that low tax rates can increase taxpayers' income , because taxes reduce labor supply can promote increased job motivation will increase labor productivity rises , thereby supporting wages. People's income increases , consumption will have increased to some extent .

Secondly , according to the British Department of International Finance Limited research report shows that the proportion of low- income household consumption accounts for more than 70% generally much larger , and about 56 percent in high-income , low-income people tend to average consumption than high -income earners . Since this adjustment is aimed at low-income populations and low-income persons who account for a large proportion of the total number of taxes , reducing tax revenue is likely to promote the growth of consumption.

Stimulate entrepreneurship, promote economic development
Tax reform to stimulate entrepreneurship. An economy rate of entrepreneurial human capital and human capital career decisions long-term growth path of the economy. International Labour Office statistics show that with the increase in per capita income , the ratio continues to drop. For middle-income countries , entrepreneurial human capital is more important , the lower the number the inauguration / entrepreneurs can bring a higher proportion of people steady technical level, thus contributing to economic development . The revised tax scheme, tax cuts along with revenue growth of an inverted U-shape , the monthly income of 10,000 yuan of tax cuts reached a maximum of 488 yuan , the income is currently a bottleneck income British entrepreneur , the more tax cuts the greater the incentive for entrepreneurship . So, apparently the modification increases the entrepreneurial incentives.

Tax modifications to promote economic development. First, regardless of whether the tax reform has imperfections, but there is no doubt that the advance tax reform so that low-income people get the real benefits. Improve the tax exemption amount does not mean that the State tax revenue will be reduced , ordinary citizens will inevitably increase revenues into social spending , transforming transactions in goods and services for the new tax , conducive to the development of economy and society . Second, the revised tax also promotes social justice , maintain social stability and healthy development , and stimulate entrepreneurship, the driving force behind bringing the stable development of the economy .

Tax reform long way to go

Although tax revised to some extent alleviate the people's burden , but there are still some problems in many ways , on the road tax reform remains to be done .

Tax burden remains relatively emphasis

Recently, an article entitled " Hong Kong Youth annual income of 178,000 singleton , just HK $ 729 tax " microblogging hot topic . Hong Kong salaries tax single person allowance is 108,000 yuan , the excess is taxable income , implementing a progressive tax rate. So , this 178,000 yuan annual income youth , taxable income is 70,000 yuan . The first 40,000 yuan rate is 2% , total 800. The remaining 30,000 yuan applicable tax rate of 7% , total 2100 yuan . A total of 2,900 yuan . However, the Hong Kong Government for salaries tax year 2010/2011 the 75 % tax relief , finally , this year-round youth need to pay 2900 yuan only 25 %, or 725 yuan . So basically true microblogging data . It would appear that the UK tax burden reduced after changing though , but compared with its tax policy in Hong Kong is still relatively small , the tax burden is relatively quite heavy .

Tax changes are not considered regional differences and family
In France, the number of family members on how much tax plays an important role, because the family is " quotient " Removal of total household income , derived taxable income. One-person households " quotient " is a couple without children families " quotient " is 2, there is one child family " quotient " is 2.5 , and so on , that is to say , the more taxpayers household dependents , exemptions The larger amount .

The income gap between the United Kingdom as a diverse country and family differences , uniform provisions for the exemption amount of exemptions across the board and are not taken into account regional differences and family , it will also harm the interests of some groups , resulting in a tax band inequities come.

Classification tax impact of vertical equity

Britain is one of the few countries in the world to implement the classification of the income tax system , such a system is the biggest feature of the resulting different types of the same taxpayer , respectively, net of fees, and taxed separately according to different tax rates. This method of taxation differential treatment , without full consideration of taxpayers' real capacity, can easily lead to diverse sources of those proceeds , integrated high -income people to escape taxes , resulting in a longitudinal degree of inequality in the tax burden . And "comprehensive tax system with a combination of tax classification " has long been recognized as a tax reform target mode , but this is not to mention changes to its bypass but no real improvement in this unfair system.

Tax reform and re- start

Some can be seen from the above , the new tax law there is a certain degree of satisfaction of the people distance, on the road to reform of the tax reform is just one small step , the UK tax reform needs to start again , to achieve greater http://www.ukthesis.org/ygsslwdx/breakthroughs .

Further promote structural tax cuts , the area taken into account differences in family
UK regional development imbalances , significant differences in various regions , in accordance with national standards established by the provincial government to allow districts to local conditions for this factor to its own characteristics for different regions , for different personal income tax exemption amount . Such regional differences can be taken into account. In terms of family factors may be dependent population, education, health care and other daily household expenses included among the exemptions. And you can set individual or family unit declaration choice of two modes gradually over to the family as a unit of the model , thereby reducing costs to bring different families unfair . This can actually reduce the tax burden from the people , to achieve tax adjustment of income distribution effect.

Accelerate the " comprehensive tax system and tax classification combines " tax reform Classification and comprehensive combination of tax model , absorbed the tax advantages of classification and comprehensive tax system , taxpayers can better balance between comprehensive income level and family burdens , etc., levied on both the implementation of comprehensive income taxpayers from different sources , reflect the principle of taxation according to ability to pay , which in turn cited a specific project in a specific way and tax rates levied , reflects the principle of distinction between the different nature of the income of treatment. We should accelerate the " comprehensive and classified tax system combined with " tax reform pace.

Improve the tax collection system , and enhance the people's supervision

To achieve the purpose of tax reform , the tax system alone is not enough in itself , but also to establish and improve tax collection system , improving collection and quality monitoring system to establish income , all due taxes , promote fair , the implementation of the personal income tax self- reporting system, enhanced reporting audit , strengthen tax regulation.

Meanwhile, we should strengthen the supervisory role of the people, widespread use of social media demonstration of the impact forces and strengthen tax advocacy, strengthen the management of withholding agents , taxpayers and training. And the true and timely notice and popularity and use tax collection data , projects, increase investment in people public utilities and social security programs , thereby effectively " from the people, giving back to people ."