City Plans Wage Reform Plans to Benefit Low Income Families
A new program will now allow Non-Hukou residents to be covered by government subsidized housing program. New measures are also planned that will lower public service costs such as bus fares and Metro fares to accommodate low income residents.
According to United Nations standards, Shenzhen have set its poverty line at US$ a day. Beijing alone spends 10 billion yuan every year in efforts to reduce transportation fees for its low income residents, and Shenzhen spends around 5 billion yuan in reducing transportation fees. The city is also studying the feasibility of taxing families rather than taxing individuals.
Officials are also expanding local charity efforts and a reform of charity organizations is planned to be done next year. Last year charitable donations reached more than 3 billion yuan. Also if allowed the city will also pilot an inheritance tax plan.
Last month the State Council unveiled an overall income distribution plan that will focus in improving earnings of low income groups and capping high wages in several privileged sectors by breaking monopolies that might involve opening State sectors to private investors. The plan will also regulate sectors by levying higher tax rates to State owned enterprises.
Since 2004 the country have long been working on an income distribution plan reform but certain expectations have not yet been met.