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A proposal to raise the threshold for individual income tax has been submitted to the Chinese State Council for approval, with a promise that the final threshold will not be higher than 3000 Yuan, or about 440 U.S dollars.
Despite expressing general approval for the increase, "China Youth Daily" argues that this kind of tax manipulation will not resolve long term problems.
It suggests the level of the individual income tax threshold should be worked out by Chinese local governments.
The newspaper argues that salaries vary in different parts of China, so a standard threshold will not suit different people in different areas. And a constant change of the individual income tax threshold will inevitably cost too many human resources.
The article suggests that China should follow the international norm to give rights back to local governments, and moderate the individual income tax threshold levels for people depending on where they live in China. It should also save administration costs as much as possible, and upgrade its efficiency of policy making and implementation.
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