Under the situation of loose monetary policy for many years, the living consumption expenditure of urban residents has been rising rapidly, and the low and middle income groups have been reflecting strongly. This time’s proposal to raise the threshold of individual income tax is a major reform of income distribution mechanism that benefits all the people. In particular, we should learn from the deduction mechanism of personal income tax under the mature tax system in western countries. For example, daily expenses such as children's education expenses, medical expenses for serious diseases, and support for the elderly should be deducted. Taxes should be paid only when the threshold is reached, which shows a strong humanized design.After starting this round of tax threshold reform, it is suggested that the next step is to strengthen the screening and monitoring of high-income people and establish a basic personal income account for them. All personal income can only be carried out in one bank account, and all income should be included in tax monitoring. At the beginning of the reform and opening up, Comrade Deng Xiaoping firmly said that poverty is not socialism. At any time, we should not regard low-income and poverty as the pride of socialism. It is not socialism to toss workers into poverty, and poverty cannot reflect the superiority of the socialist system.
