Should the interest tax be abolished?

Should the interest tax be abolished?
Aug 14, 2007 22:54
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	From August 15th, the interest tax will decrease to 5% from 20%. Meanwhile, the reserve ratio will increase 0.5% to 12%. The purpose is too cool down China's overheated economy, to avoid the potential inflation and solve the problem of excess liquidity. On the issue of the interest tax, some people think that the interest tax should be cancelled. Imposing the interest tax is bad for those middle and lower income families. What they can rely on is their savings at the banks. However, they have to pay the tax for saving. For the rich, they can use their money flexibly. They can invest in the stock market or real estate. They do not care about the interest tax, This is not fair. Thus, the interest tax should be cancelled to lighten the burden of those middle and lower income families. What do you think of it, abolished or not?

Aug 14, 2007 22:54

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

From August 15th, the interest tax will decrease to 5% from 20%. Meanwhile, the reserve ratio will increase 0.5% to 12%. The purpose is too cool down China's overheated economy, to avoid the potential inflation and solve the problem of excess liquidity.

On the issue of the interest tax, some people think that the interest tax should be cancelled. Imposing the interest tax is bad for those middle and lower income families. What they can rely on is their savings at the banks. However, they have to pay the tax for saving. For the rich, they can use their money flexibly. They can invest in the stock market or real estate. They do not care about the interest tax, This is not fair. Thus, the interest tax should be cancelled to lighten the burden of those middle and lower income families.

What do you think of it, abolished or not?

Aug 15, 2007 22:05	#1
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	It should be abolished. Stopping imposing the interest tax is not only beneficial to the middle and lower income families but also to the stock market. In this way, more capitals will be transferred from the stock market to the banks. To some degree, the stock market will be cooled down.

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