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China should tax the rich and raise the income threshold in common prosperity push: Gree Electric chief
- Top tax bracket should be increased from 45 per cent to at least half, Dong Mingzhu says
- Minimum income thresholds should also be doubled to 10,000 yuan a month, she says
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24
China should raise the minimum income tax threshold to boost consumption and the rich should be taxed more as the country works towards “common prosperity”, according to a prominent businesswoman.
Gree Electric Appliances chairwoman Dong Mingzhu told state broadcaster CCTV on Saturday that consumption would only pick up if there was job security.
“We have been saying that consumption is weak but how can people spend more if they don’t have any income?” Dong said.
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Dong, a National People’s Congress deputy, said the national threshold for income tax should be doubled to 10,000 yuan (US$1,580) a month, a level that could help boost consumer spending power.
She said the top income-tax bracket of 45 per cent should also be raised to 50 to 55 per cent. Like the United States, China has a progressive tax system, with tax rates ranging from 3 per cent to 45 per cent.
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“If you have a higher income you should pay more tax. This [revenue] would support services for the public,” she said.
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