What Is a Surtax?

The surcharge is a symmetry of "positive tax". Taxes levied with positive taxes. The surcharges of old China had many names. The salt tax in the Kuomintang period included central surcharges, local surcharges, external debt surcharges, and construction funds. The surcharges often exceeded several times or even more than 20 times the normal tax. After the founding of the People's Republic of China, the Kuomintang's various additional taxes were abolished, and only a small amount of additional taxes were kept at the local disposal. They belong to extra-budgetary income and are used for local public welfare. Such as agricultural tax surcharges, foreign corporate income tax surcharges, etc., the additional proportions are relatively low. ^[1]

[fù ji shuì] Right !

The surcharge is a symmetry of "positive tax". Taxes levied with positive taxes. The surcharges of old China had many names. The salt tax in the Kuomintang period included central surcharges, local surcharges, external debt surcharges, and construction funds. The surcharges often exceeded several times or even more than 20 times the normal tax. After the founding of the People's Republic of China, the Kuomintang's various additional taxes were abolished, and only a small amount of additional taxes were kept at the local disposal. They belong to extra-budgetary income and are used for local public welfare. Such as agricultural tax surcharges, foreign corporate income tax surcharges, etc., the additional proportions are relatively low. ^[1]

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From China

Surcharges have been widely used. The United States often adopts progressive taxation in the form of additional taxes on income exceeding a certain amount. In 1960, the federal income tax in the United States imposed a 30% tax on all net income, and a corresponding 22% surcharge was levied on taxable income totaling more than $ 2,500. In the late 1930s and 1940s of the Kuomintang government in China, local governments at various levels imposed additional taxes at various levels. There are many types of additional taxes. There are more than one hundred types of land tax, and the amount often exceeds that of the normal tax. Several times or even dozens of times have become another heavy burden on the working people in addition to the burden of regular taxes.

After the founding of the People's Republic of China in 1949, additional taxes were rigorously cleaned up and rectified, and their number has been greatly reduced. The state has successively collected industrial and commercial business tax surcharges, industrial and commercial unified tax surcharges, agricultural tax surcharges, urban real estate tax surcharges, and industrial and commercial income tax surcharges. For example, the Regulations of the People's Republic of China on Agricultural Taxes stipulate that agricultural taxes are calculated on the basis of annual output. At the same time, in order to handle local public welfare undertakings, provinces, autonomous regions, and municipalities may levy local surcharges that generally do not exceed 15% of the tax payable by taxpayers. The agricultural tax is a positive tax, and where it is collected, it is a surcharge. China's tax revenue is not included in the state budget management, but is collected and managed by the local government as extra-budgetary revenue. Its revenue is under the control of local finances and used for urban maintenance and rural public welfare.