The State Council, China's Cabinet, is planning to further lighten the tax burden on low-and middle-income people and moderately increase the tax on those with high incomes as a way to better regulate the country's income distribution.

Raising the incomes of poorer people and controlling excessive increases in the incomes of wealthy people would be a positive step toward expanding the middle-income group and promoting reasonable distribution of social wealth.

However, the problem is what constitutes a high income.