Font Size: a A A

Research On The Problems And Reformation Of Individual Income Tax In China

Posted on:2005-09-13Degree:MasterType:Thesis
Country:ChinaCandidate:L S DouFull Text:PDF
GTID:2156360122489394Subject:Public Management
Abstract/Summary:PDF Full Text Request
Individual income tax, a type of direct tax, refers to the tax imposed on the dutiable income of an individual. As the Chinese economy develops steadily, the living conditions of the people have been improved accordingly. As a result, the scope of individual income taxation has been becoming larger and larger, involving thousands of households inside. Individual income tax is becoming the focus of people's attention. The significant function of individual income tax is to adjust the income distribution, which is also the focus of people's attention. Since people's abilities are different, their incomes are surely different. Those who have high income have to pay more taxes, and on the contrary, those who have low income pay less, which is a universally accepted principle. But in China, individual income tax is still weak in adjusting the income distribution. The individual income tax paid by the rich who possess 80% of the wealth of the society only accounts for 10% of the total individual income tax collected. There is a wide gap between the rich and the poor.In order to change this situation, this article proceeds from briefing the emergence and development of individual income tax in China, points out the problems and the underlying reasons. Taking some foreign theories and advanced approaches as reference, the article indicates the direction and measures of the reform of individual income tax in China, that is to improve the tax system, heighten the level of taxation management, devote much attention to the function of realizing the adjustment of distribution and financial income, thus to give an effective play to the function of individual income tax in politics, economy and social life. The reform will be performed from 3 aspects, tax system, tax rate and management of individual income taxation so as to make individual income tax yield well. In addition, through an analysis of examples, the article suggests a starting point of income level dutiable to impose individual income tax, and states that the point should be updated according to the constant development of the economy and the increase of people's income.
Keywords/Search Tags:individual income tax, income distribution, tax system, tax rate, taxation management.
PDF Full Text Request
Related items