What is a high progressive income tax What does the excess progressive personal income tax rate mean

Progressive income tax refers to an income tax system in which the rate of tax increases as an individual's tax payable increases until a certain point is reached. Specifically, different tax rates are determined according to the level of income, and high-income people are taxed at a high rate, and low-income people are taxed at a low rate. The role of the progressive income tax system in this paragraph Individual income tax is an important part of taxation, which regulates the inequality of income distribution among members of society through the progressive income tax system.

The progressive income tax system is to determine different tax rates according to the level of income, and tax those with high income at a high rate and those with low income at a low rate. This progressive income tax is conducive to correcting the inequality in income distribution among members of society, thus contributing to the equalization of income. However, this progressive income tax is not conducive to the ability of people to give full play to their talents, and it is also a loss for society.

A progressive income tax system is implemented, which means that the rich are taxed at a higher tax rate and the poor are taxed at a lower tax rate. Under such a tax structure, the average tax rate of each taxpayer, i.e. the ratio of the tax payable to his or her income, will vary depending on the individual's net income. The higher the net personal income, the higher the average tax rate.

The progressive income tax system is a common practice in personal income tax in Western countries, taking Germany and the United States as examples, the German interest tax is 30, but it is mainly aimed at high-income people. If the interest on the personal deposit of a single person is less than 6,100 marks, and if the married person is less than 10,000 marks, you can fill in a ** when making a deposit, and the bank will apply for exemption from interest tax on your behalf; The personal income tax of the United States in 1994 is divided into five levels, and the marginal tax of each income tax level is % and, according to the poorest, second poorest, middle, second richest, richest five standard divisions, the proportion of each tax burden in family income (effective tax rate) is that low-income families not only do not pay taxes, but can get some subsidies and tax refunds5%。

The excess progressive tax rate refers to the decomposition of the taxable income into several sections in accordance with the provisions of the tax law, and each section calculates the tax payable in that section according to its corresponding tax rate, and then adds up the calculated tax amount of each section to be the individual income tax payable on the taxable income.

The progressive tax rate of excess is to divide the amount of the taxable object into several levels, and stipulate the corresponding tax rate for the amount of each level, and calculate the tax amount separately, and the sum of the tax amounts of each level is the tax payable. The word "exceed" in the progressive tax rate of excess refers to the fact that when the amount of the taxable object exceeds a certain level, only the excess part will be calculated and taxed at the higher tax rate.

China's residents' personal comprehensive income and production and business income are subject to an excess progressive tax rate.

The progressive tax rate for excess means that the tax basis is divided into different levels, and different tax rates are applied to each level; In addition, if a certain level is exceeded, a higher tax rate will be applied to the excess part, and then the results calculated by applying several tax rates to each level will be added to obtain the total tax payable.

For example, the tax rate table of individual income tax on comprehensive income is as follows:

If the taxable income does not exceed 36,000 yuan, the applicable tax rate is 3%; For the part exceeding 36,000 yuan to 144,000 yuan, the applicable tax rate is 10%; For the part exceeding 144,000 yuan to 300,000 yuan, the applicable tax rate is 20%; If it exceeds 300,000 yuan to 420,000 yuan, the applicable tax rate of 25% ...... will be applied to the air crack

Therefore, if your annual taxable income is 10,000 yuan, then the applicable tax rate is 3%, and the payable personal income tax is 10,000 3% = 300 yuan.

If your annual taxable income is 200,000 yuan (200,000 yuan), then the tax rate is 3% for the part not exceeding 36,000 yuan; For the part of 144,000-36,000 = 108,000 yuan over 36,000 yuan to 144,000 yuan, the applicable tax rate is 10%; If it exceeds 144,000 yuan, the part of 200,000-144,000 = 56,000 yuan will be subject to a tax rate of 20%.

Therefore, the annual taxable income is 200,000 yuan, and the individual income tax payable is 36,000 3% + 108,000 10% + 56,000 20% = 23,080 yuan.

For the convenience of calculation, there is a quick deduction. The taxable income is 200,000 yuan, the highest applicable tax rate is 20%, and the corresponding tax rate table, the quick deduction is 16920, so the individual income tax payable is 200000 20%-16920=23080 yuan.

This is how the excess progressive tax rate works. The purpose of the excess progressive tax rate is to make high-income earners pay a higher percentage of the tax.

The following is the table of individual income tax rates for production and business income.

China's personal income tax is subject to a cumulative tax rate; For the progressive tax rate, which increases with the increase in the amount of the taxable object, the amount of tax will be different for different levels, and the individual income tax is calculated based on the final amount of the individual's income.

1. Is China's individual income tax a regressive tax rate or a progressive tax rate?

China's personal income tax is a progressive tax rate;

Progressive tax is a symmetry of "regressive tax refund", a tax rate that increases with the increase in the amount of tax object. That is, according to the size of the amount of the taxable object, different levels of tax rates are stipulated. The larger the amount of the taxable object, the higher the tax rate; The smaller the amount of tax to be levied, the lower the tax rate.

The degree of burden of progressive tax taxpayers is directly proportional to the ability to bear taxes, which has the advantage of fair burden. From the point of view of its negative effect, the degree of progressiveness is too large, which will lead to rewarding laziness and punishing attendance, which is not conducive to encouraging people to work.

Progressive taxes can be divided into two types.

1. Full (rate) progressive tax: all the amount of the taxable object is calculated and levied according to the tax rate of a corresponding level;

2. Progressive tax on excess (rate): The taxable object is divided into several grades according to the amount (ratio), and each grade is levied according to its corresponding tax rate.

2. What are the conditions for applying for individual income tax refund?

1. Handling conditions: Taxpayers pay taxes by mistake for various reasons. (e.g., repeated payment of withholding, misuse of tax rate, misuse of tax, misuse of ** by enterprise, etc.)

2. Required materials:

1) One original and one copy of the tax payment certificate (the original will be returned to the taxpayer after the audit is correct).

2) A copy of the detailed return form of individual income tax for the period to which the tax is wrongly levied and paid by mistake.

3) The application form for tax refund (credit) ("Application Form for Tax Refund for Mispayment by Enterprise") shall be in quadruplicate.

4) For tax refund application, the reason for tax refund and the amount of tax refund must be indicated.

5) A copy of the payroll receipt or bank receipt; A copy of the employee's employment contract.

To sum up the above, personal income tax is because the individual's income has reached the standard of tax dispersion to pay the tax fee, for the calculation and collection of this tax will be processed in accordance with the progressive tax rate, so that it will change with the size of the amount, if the tax is how much then you can apply for a tax refund, but if there is a small payment, then it will be paid.

Divide the shirt Zen category: business, financial management, >> finance and taxation.

Problem description: The taxable income of company A from January to March is 28,000, the taxable income from April to June is 56,000, the taxable income from July to September is -8,600, and the taxable income from October to December is 84,000. Is the approved levy (according to the progressive tax rate of excess?) ）

Analysis: Not over-progressive.

First quarter: income tax payable = 28000 * 18% = 5040 second quarter: income tax payable = 56000 * 27% - 5040 = 10080 third quarter: income tax payable = 0

Fourth quarter: income tax payable = 84000 * 27% - 5040-10080 = 7560

Annual income tax payable = 84000 * 27% = 22680

1.Full progressive tax rate: It is a type of progressive tax rate, that is, the entire amount of the taxable object is calculated and levied according to the progressive tax rate of its corresponding level.

2.Excess progressive tax rate: It divides the taxable object into several levels, stipulates the corresponding tax rate for each level, calculates the tax amount separately, and the sum of the tax amounts of each level is the tax payable.

Taxes are levied according to the grade, and the tax rate is increased step by step.