Narrowing widening income gaps ought to be focus of tax reform

THE CENTRAL AUTHORITIES HAVE RECENTLY PUBLISHED A PLAN on tax reform that echoing the public calls for a personal income tax system that aims at collecting more from those with high incomes. That's still unfair because those in the so-called high-income group are still wage earners, while those getting profits from properties can easily evade tax, says a Southern Metropolis Daily:

Income tax is meant to make wealth distribution fairer. However, in China it makes it more unfair because wage earners pay the majority of income tax, while property holders enjoy lower tax rates.

Worse, income tax is taken from people before they get their monthly wages, while rich people can evade tax in various ways. For example, entrepreneurs can mix their property income with corporation business revenue, while reports show certain celebrities don't pay tax on the money they receive for advertisements. That's why people say China's personal income tax subsidizes the rich at the cost of the poor.