According to two top Chinese economic analysts, China should simplify its individual income tax code by reducing the number of brackets and lowering the top tax rate. Currently, China has nine tax brackets with the being 45%. According to the analysts these high tax rates buck the international trend of lowering high taxes. The report went on to say that the “exceptionally high” tax bracket encourages tax evasion and that raising the cut off point below which no tax is paid would paradoxically benefit high income workers the most. Also, raising the minimum salary cut off point would drastically save China money. Source: http://online.wsj.com/article/BT-CO-20110227-702840.html
