The plan to increase salaries and spur domestic needs was recently published. Following it was a suggestion to raise the personal income tax threshold, which has aroused heated discussion.

Let's take a look at the media opinions.

'Bejing Youth Daily' carries a review saying that although raising the individual income tax threshold is expected, it needs to be done fairly and legally. Reductions on tax should not only be implemented for individuals, but also enterprises. Financial policies made to spur domestic needs and revive the economy, need funds. The government should seek a balance when it spends money in different areas.

An article in the 'Beijing News' comments that tax rebate is only a temporary economic policy.
 
Raising the personal income tax threshold is a long-term benefit for ordinary residents, and is more helpful to expand domestic demand. It could increase the level of residents' income and avoid complex problems that might be caused by the legislative process.

One commentry from the Shanghai Morning Post believes income tax cut will be an effective way to stimulate consumption which is vital for economic grow at the moment. The article says although the move will mainly affect middle income people in cities, it could have huge impact on real estate and auto market. The ripple effect will be felt in many areas.