Research Of Domestic Individual Income Tax System Reformation

Individual income tax, which is playing an important role in the modern tax system, is the dominant taxation in the majority of the developed countries and one of the main sources to the fiscal incomes of many developing nations. Every functions of it are being widely used in the practices of macroeconomic regulation and control.Our country's individual income tax levy started quite late, but is developing with high speed. Now it becomes the fourth largest tax of our country. Along with the rapid economical development, particularly after our country's entry to the WTO, the present individual income tax system could not meet the demands of the economic development, and need be reformed.First, this thesis mainly introduces the related theories, and it analyzes the influence of the individual income tax to work supply, cost, deposit, and the economy stabilization. Second, it mainly introduces our country individual income tax's history of development and main content; and analyzes key problems of our individual income tax, which includes unreasonable factors in the tax system and administration problem of taxation; also analyzes the taxation losses caused by these problems. Through 4 aspects, such as mode of taxation, pre-tax deduction, tax rate and administration of tax collection, it has national comparison of individual income tax, and gives the regularity conclusions. At last, according as the concrete situation of our country and other country's advanced individual income tax system, it puts forward concrete advices to the reformation of individual income tax, and forecasts the development direction of individual income tax.