The Study On The Perfection Of China Individual Income Tax Law On The Angle Of Value Goal

In the context of all sections of China society calling for amending the individual income tax law in recent years,NPC (National People's Congress) had revised the law twice in 2005 and 2007, but NPC revised it little, it only orderly increased wage-earning class taxpayer'deduction for pretax expenses from 800 Yuan to 1600 Yuan and 2000 Yuan ,that 800 Yuan standard of deduction had been executed 25 years. No doubt ,the little change in China individual income tax law is impossible to cover up the law's flaw at achieving the law's value goal in tax equity and tax efficiency,so the law need reform more widely and further.Above all, the current individual income tax law sit heavy on the mid and low income wage earners because gathering revenue have been treated as the first function in the law, accordingly, tax efficiency have been placed first on the law's value goal system,and tax bearing is comparatively focused on wage-earning class taxpayer. Secondly,it leads to the value goal of the law——tax equity and tax efficiency isn't ideally actualized that there exist the classificatory system of tax, many factors which restricting tax base enlarging, obsolete deduction for pretax expenses,improper tax rate design, deficient tax collection and management system. The following resolution is brought forward facing the problem of the law:on the one hand, adjusting income gap should be taken as chief function of the law,accordingly , value of tax equity should be given prominence;on the other hand, adopting the comprehensive system of tax,taking effective steps to enlarge tax base,reforming deduction measures for pretax expenses by referencing foreign successful experience, simplifying tax rate structure ,reducing marginal tax rate and optimizing the taxation system of collection and administration.The perfection of the individual income tax law on the angle of value goal need to lay more emphasis on regulating people's income gap and heightening the value on tax equity , at the same time consider the value on tax efficiency ,and exhibit the spirit of protecting human rights of the Constitution by reducing tax bearing and strengthening the tax collection and management.