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Nouveau Riche Made 66% of Residents' Savings

Sources say recently that 66 percent of the 6,000 billion yuan of Chinese residents' deposits come from 10 percent of the residents.

Investigations conducted jointly by the National Bureau of Statistics and other relevant departments last year among the 150,000 households of urban residents reveal that the earnings of 20 percent high-income households accounted for 42.4 percent of the total income, with the household per-capita income being 992 yuan.

While the earnings of 20 percent low-income families constituted only 6.5 percent of the gross income, with the household per-capita income standing at 124 yuan. High-income level and the level of poverty have gradually taken shape among urban residents and families.

How to properly limit the excessive gaps between individual incomes with due attention paid to both efficiency and fairness? Related experts pointed out that we must not follow the past old path of absolute egalitarianism.

China's current practice of levying interest tax, individual income tax and the upcoming collection of inheritance tax is an active move to regulate the individual income taps.

Besides, experts also suggested that on the basis of perfecting existing tax varieties, consideration may be made to begin the collection of tax on high consumption and on acts of pleasure-seeking.

(People’s Daily)


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