Comparative Study Of Personal Income Tax Law Between America And China

There are three models of Personal Income Tax Law in the world. They are Classified Personal Income Tax Law, Gross Personal Income Tax Law and Classified and Gross Personal Income Tax Law. The Gross Personal Income Tax Law model is adopted by most countries, with the United States as the typical representative. Some countries use the Classified and Gross Personal Income Tax Law, and now they are changing to use the Gross Personal Income Tax Law model. Very few countries adopt the Classified Personal Income Tax Law. They are Yemen, Syria, Jordan, China and so on.In China, the current Personal Income Tax Law was stipulated in 1980, and it doesn't catch up with the rapid economic development. To reform the Personal Income Tax is strongly required not only by the economic development but also by the ordinary people. In this thesis, the author compares the differences of Legal Subject, Legal Object and Content of Law of Personal Income Tax Law between the United States and China, and pointes out that there are several problems existing in the Tax Law Model, the Tax Burden and Tax Rate and suggests to adopt Gross Income Tax Law Model, enlarge the Taxable Income and change the Report Unit to reform the current tax law.