Wang Dongwei, Vice Minister of Finance, said at a regular policy briefing of the State Council that individuals with an annual income of less than 100,000 yuan currently pay little or only a small amount of personal income tax. After the three special additional deduction standards are raised, taxpayers' tax burden will be further reduced, especially for middle-income groups, the tax reduction will be greater. For example, if a taxpayer has two children and his father or mother is over 60 years old, according to the new deduction standards, this taxpayer can deduct an additional 3,000 yuan every month, and an extra 36,000 yuan a year. If this taxpayer's annual income is 200,000 yuan, his tax reduction rate will reach 54%; if this taxpayer's annual income is 500,000 yuan, his tax reduction rate will reach 14%. This has a very important positive effect on increasing the disposable income of individual residents and improving their spending power.