Income tax cut to pay off with boost to consumer spending

Giving workers more of the money their labor has earned ensures greater demand for domestic products

Xiao Wei works for a leading video-streaming company in Beijing and earns a good monthly pre-tax salary of 40,000 yuan ($5,800 ). His earnings impress friends and family in his home province of Anhui.

However, his net income each month is about 60 percent of what he is paid by his company, partially due to the 25-percent personal income tax. "As a professional in the internet industry, I do earn a good paycheck. But high taxes and rocketing property prices make me reluctant to buy things," said Xiao, 33.