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China has progressive tax regime, which means the rich already pay bigger percentage of tax than the poor. The question should be how much more the rich should pay than the poor.|
There is no fixed answer to that - it depends on current state and expected development of society, including all of its aspects from quantity and quality of employees to investments needed in inftrastructure to military spending. As those change, so should details of tax regime change. And China is in constant change.
In China, the poor (Chinese) who earn less than 42000 a year (or 3500 a month) are now exempt from paying taxes.
To put this in perspective, we can look at average wages in China. I have data from 2012 available - for example in cities like Harbin, Zhengzhou, Jinan and Changsha, the average salary was less than 3500 RMB a month. This means that average person living in those cities did not pay any taxes.
Someone suggested than this threshold should be increased to 100 000 RMB.
In 2012 there was no city in China, where average annual salary was higher than 65 000 RMB. A threshold of 100 000 would mean that "average person" in China would never pay taxes, only a small minority would. And that's just for provincial capitals - add to that every smaller city, and you would have a really small minority paying taxes.
Even if the tax revenue from that minority would be enough to finance the state, it would obviously not be socially fair or sustainable - taxes should always come from majority of the population.
To this equation one must include regional disparity, which exists in all countries but especially in China. What could be fair, is if the national standard deduction of 3500 RMB was regionalized based on average income in each locality. Besides making it fairer between regions, it could even motivate people and their businesses to migrate out from big cities.