Reflection On Improving Individual Income Tax System In China

Along with high-speed development of social economy in the present stage in our country and the resident income continuously increasing, as well as the gap of social distribution widening increasingly, Individual Income Tax System as one of the national main category of taxes can't have already suited nowadays society development demand. In virtue of various factors, there is still a long way to go in fully developing the due function of Individual Income Tax, which indicates that it is urgent to amend and perfect China's current Individual Income Tax System. In the first place, the thesis analyzes the insufficiency of current Individual Income Tax System in Tax Function and Taxation Design. And then, based on the definitude of the function location of Individual Income Tax, the author redesign for the taxation essential factor of Individual Income Tax. The revenue function of the Individual Income Tax can be enhanced, through of building the "paratactic Classify -Integration" Mode of Individual Income Tax, enlarging the levy scope and improving levy management. As the same time, the distribution function of Individual Income Tax can be developed effectively, through of raising the standard of the exemption, adjusting the marginal tax rates and the tax rate structure ,etc. By reasonable Taxation Design, The author try hard to obtain the "double win" target of perfecting the Individual Income Tax System and building "harmonious society". Eventually, the author expatiate the rationality of the Individual Income Tax System in design, using the method of theory analysis and data contrast. Furthermore, the thesis point out the localization of Individual Income Tax System in adjusting distribution gap. As the result, we can't merely depend on perfecting Individual Income Tax System to resolve the increasing income distribution gap. If want to obtain perfect effect, we must exert the multiplicate means including tax, law and finance, etc.