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  • 2011
  • May
  • 12
  • Individual Income Tax Reform Helps to Foster Middle Class Growth
  • Opinion & Analysis

Individual Income Tax Reform Helps to Foster Middle Class Growth

DENG Yuwen
2011-05-12

As a dynamic and stable consumer group, the middle class is now perceived as the driving force of domestic consumption. Domestic economic growth engine has been shifted from investment to consumption as a result of the rising middle class. China will be able to maintain a long-term stable development once the middle class has established itself in the society. Serving the function of income distribution, individual income tax has distinguished itself from other tax categories in terms of nurturing middle class. 

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