Tax regime limits room for raises

Authorities in Guangdong Province are encouraging successful local businesses to consider salary hikes for their employees. Provincial officials have even offered reference guidelines to help employers determine just how much they should raise wages.

Of course, it's one thing for profitable enterprises to raise workers' pay. It's another thing entirely for underperforming companies to consider doing the same. In fact, many small and medium-sized enterprises are said to be having trouble funding daily operations thanks to their hefty tax burdens.

Rather than calling for raises among businesses that are doing well, the government should offer tax breaks to struggling companies before they start shelling staff. What's more, authorities should also provide technology and funding supports that raise the value and profitability of local businesses.

The government's primary role in salary management should be reducing the gap between the rich and the poor. To accomplish this, a fair and transparent salary distribution system should be rolled out.

Officials and business owners must both take responsibility for raising salaries. With cooperation from all sides, this objective can be realized.