American-style taxes would be good for China
A US approach to taxation which allows couples to jointly file their tax returns based on whole family income is in focus, as China tries to have its tax regime reflect the rising cost of living and ensure global competitiveness.
Tax reform is not an easy task, but I believe both the nation and the individual citizen would benefit if the US model is followed for the mainland income tax system.
Firstly, faced with the problem of an ageing population and work force after several decades of a one-child policy, the central government has now eased restrictions on family planning, having implemented a two-child policy in the past few years.
However, a lot of Chinese families are not very eager to have a second child because of the high costs of bringing them up. If costs of education and medical treatment are deductible under the proposed household declaration of income tax, it would be good news for such families, and effective policy to encourage them to have more children.