What is a Proportional Tax?

Proportional tax is a type of tax that is levied on the same taxable object regardless of the amount. In the Chinese tax system, proportional taxes are used: product tax, value added tax, sales tax, customs duties, livestock transaction tax, market transaction tax, large and medium-sized state-owned enterprise income tax, private enterprise income tax, Chinese and foreign joint venture income tax, withholding income tax, Agricultural tax, real estate tax, deed tax, construction tax, slaughter tax, feast tax, urban maintenance and construction tax, and national energy and transportation key construction fund. ^[1]

[b lì shuì]

Refers

It encourages companies that produce the same product to a certain extent, encourages advanced, lags behind, and promotes the strengthening of enterprises

China's unified industrial and commercial tax, product tax, and current tariffs

Advantages: The biggest advantage is that the calculation is convenient and the income is stable. Generally, it is suitable for income-based calculation.

State tax bureau

method one:

Y = C + I + G = a + bYd + I + G

= a + b [YTt (YT)] + I + G

Y = 1 / [1-b (1-t)] * (a-bT + bTt + I + G)

Y = C + I + G

= a + bYd + I + G

= a + b (Y-T-? Tt (Y-T-? T)) + I + G

Y = 1 / [1-b (1-t)] * (a-bT-b? T + bT + bt? T + I + G)

? Y = Y-Y = 1 / [1-b (1-t)] * (-b? T + bt? T)

? Y /? T =: -b (1-t) / [1-b (1-t)]

Method Two:

Tax reduction? T, income increases? T,

Without considering

(1) Mandatory. Refers to the state's role as a social administrator, using legal forms to restrict the rights and obligations of both parties. The state levies taxes on political power, not on property ownership. State taxation is not subject to the restriction of direct ownership of property, and the state can exercise taxation rights over different owners. Socialist state-owned enterprises are relatively independent economic entities. The tax relationship between the state and state-owned enterprises is also mandatory. This is the fundamental difference between the form of taxation and the form of profit transfer of state-owned enterprises.

(2) Free of charge. Refers to the fact that state taxation does not require direct repayment to specific taxpayers, nor does it pay any form of direct remuneration. Freedom is a key feature of taxation. It sets taxes apart from forms of fiscal revenue such as government bonds. The non-reimbursement determines that taxation is the main means of raising fiscal revenue, and has become a powerful tool for regulating the economy and correcting unfair social distribution. The formal characteristics of the tax free of charge are addressed to specific taxpayers.

(3) Fixedness. Refers to the state taxation must pass the legal form, pre-defined taxation objects and taxation quota. Can also be understood as normative. The implication of tax immovability includes three levels, namely, non-punitiveness on taxation objects, continuity of levy time, and limit of levy ratio. The fixed nature of taxation is an important feature that distinguishes taxation from the forms of fiscal revenue such as confiscation and apportionment.