Research On Individual Income Tax Reform In China

The individual income tax, as the outcome of marketable economy, has such functions as adjusting individual income, maintaining the stability in society and economy and increasing revenue. The reform of individual income tax should be beneficial to the feedback from the urban to the rural and industrial to agricultural in economical transition in China, and so and force implementing the coordinated development between the urban and the rural areas in order to establish a harmonious society.The current system of individual income tax in China, for the indefinite taxpayer, the narrow tax object, unfair tax burden and lack of a regulator system and so on, is blocking the coordinated development of society and economy in China. The reform consequently not a simple raise or reduction of tax, but a constructional adjustment and improvement followed by the law of the marketable economy and the essence of socialism. In those reasons, it is argued to establish a system of individual income tax which is a united one in rural and urban areas in China and can be automatic controlled, and a model is set up in attempt as well in the following thesis.