On March 5, Premier Li Keqiang announced the 2018 government work report at the first session of the 13th National People's Congress (NPC). The report said that China will raise the tax threshold, increase their children's education, and reduce medical expenses. In the past seven years, the proportion of personal income tax in the national tax revenue has gradually increased from 6.75% in 2011 to 18.6% in 2017. Given the rising incomes caused by China's rapidly developing economy and normal inflation, it is a necessary requirement of economic development to adjust the tax exemption.