The central authority is proposing to initiate a networked database of personal information as a move toward collecting income tax on a household basis.

This is a significant step forward in tax reform, related to the interests of all taxpayers as well as the healthy development of society and public governance in China.

The current individual income tax is levied on the income of individuals. Wage earners have no choice but to pay tax on every penny they earn above the tax threshold if their wages are their families' only income source. But the more income sources people have, the more chances there are for them to evade tax.