Develop the middle class through income reform

The main purpose of China’s income reform is not to force the rich to give their wealth to the poor, but to promote the development of the country’s middle class, says an article in the 21st Century Business Herald. Excerpts:

The income gap in China today is reflected in the welfare disparity among different groups of people.

The taxes paid by middle-class citizens in China are, theoretically, the price paid for the government’s public services.

In today’s Chinese society, the middle class contributes more than its due share because wealthy people have more sources of income and more ways of evading taxes.

A strong middle class is the foundation of a wholesome and well-functioning society. The Chinese government must match the public services for the middle class with their contributions. Increasing their income is another effective way to narrow the gap.

Meanwhile, China should not relax its efforts to tax all the taxable incomes of the wealthy and eliminate gray income, especially for civil servants and executives of State-owned enterprises.