Experts Suggest Issuing 1000 Yuan Coupons For Low-Income Employment Groups

Liu Qiao, Dean of Guanghua School of Management of Peking University, recently published the article "thinking and suggestion on China's economic policy after the epidemic". It is suggested that the national employment population should be paid 1000 yuan in the form of cash subsidies, and the total amount of vouchers should be issued to all the employed population in Hubei Province, with the exception of Hubei's low-income employment groups. This can help the groups affected by the epidemic to tide over difficulties, maintain social stability, and help stabilize consumption.

Taking into account that consumption has become an important kinetic energy for China's economic growth, the post epidemic policy should focus on the impact of hedging on consumer spending and consumer confidence, the article said. The most direct way to stimulate consumption potential is to subsidize low-income groups through tax cuts and subsidies. We should consider increasing the threshold of personal income tax and lowering the tax rate to stimulate residents' consumption.

In the key year of building a well-off society in an all-round way, the government can further reduce the personal income tax and stimulate consumption by increasing tax reduction, so as to reduce the impact of the epidemic on economic growth. In view of the reduction of personal income tax, we believe that we should increase tax reduction for middle and high-income groups, raise the threshold and lower the tax rate.

We should consider adopting the consumption coupon policy to subsidize low income employment groups and promote domestic demand refunding. We suggest that consumer subsidies should be issued to low-income people who are more affected by the epidemic, and will be tilted to the serious epidemic areas of Hubei province. All the employment people in Hubei will issue vouchers.

The paper also gives specific proposals for the issuance of consumption coupons, including subsidies for employment groups with relatively low income and heavy burden on the people affected by the epidemic and subsidies to key areas such as Hubei and other serious epidemic areas, and consumption coupons amounting to 1000 yuan.