Primary Research On Individual Income Tax Reform In Our Country

The individual income tax in our country hasn't suited the demand of the socialist modernized construction's situation yet.Only by coordinating the taxation institutional design and the management of income,can the individual income tax really give the function of accumulating the financial fund and regulating the social economy into full play.And in the meantime,it can promote its position of the tax revenue system in our country.I .Comparative analysis between Chinese and Western theory of theindividual income taxLabour value theory declares that wages is a transitional form of the labour value.Under the normal circumstances it can not be cutted down.To impose on wages recipient will be borne by capital profit through the promotion of the nominal wages.It was regarded meaningless to impose individual income tax in our country for that state-owned economy occupied an dominant place in the national economy in the academic circles of our country.However,that we has put the system of the individual income tax into prelimary practice since the execution of reformation and the open policy charged the original theory strongly.Wages is considered as the compensation for its raising the productive forces as a price of the labour factor after the transition from the theory of labour value to marginal utility.It is the taxpayers who undertake the tax burdens.The practice of the individual income tax inour country isn't sound at present,which decide that the depth and the scope of the specific analysis in our coutry's academic circles is much inferior to it in the Western's.II .Great effects of the individual income tax on our national economy & the analysis of its position in the taxation( i ) Definition to the individual income.The income in a broad senseincludes flowing income,potential income and income storage.lt is considerated that individual income should contains flowing income and income storage.The individual income tax ought to be defined fulfilled earnings and property that natural person gain from various channels.(ii) Great effects of the individual income tax on our nationaleconomy.The two functions of the individual income tax that accumulate financial funds and promote social equitable distributions are taken seriously nowadays.Corporation tax revenue has a great proportion in the total income tax revenue,while the individual income tax,which is established as a potential tax category that can increase the revenue mostly,hasn't give the functions yet.Our positive fiscal policies was in strong need of financial revenue.lt is necessary to improve the proportion of the individual income tax on GDP soon,so as to resolve the pretty tight financial demands effectively.With the strengthening of the action of the distributional adjustment of the market- mechanism,some irregular and irrational income disparities are extended.The over extention of the individual income disparity is certain to hinder the social stability,the labouring people's enthusiasm and the economic development aswell.Besides the slip of the distribution system,the major cause is that a certain part of the residential income move outside of the taxation,which lead to over extention of the function of the individual income tax on the redistribution link.(iii) Analysis of the position of the individual income tax in ourcountry's taxation.We have successfully founded a comparative integrated and independent modernized industrial system,and the tertiary industry is advancing steadily.Now the industrial foudation has been possessed in our country.Although some reformations have been put forward since 1980s,the individual income tax still has great vitality and it will not be replaced with other tax category.Owing to the limit of the economic level,it demands development and perfection urgently especially to our country .To select a structure of the taxation for a country depends on that how to weigh impartiality and efficiency of the economic development.lt is decided more by the level of the productive forces,and the relevant productive socialization,commercialization and monetarilization.As a result of the dual economic structure of our country,the present structure of the taxation,the construction of the democracy and the legal institution,and the restriction of the international prevalent trend,the individual income tax is not fit to become the principal tax category.EH.Necessity to reform the individual income tax in our countryThe individual income tax can meet the demands of the principle of keeping taxation efficient,fair and financial quite well in theory.Thedeveloped countries have carried out the strategies of the comprehensive income tax and linear income tax since 1980s.The integration of the individual income tax and corporation tax,as well as the indexation of the individual income tax,have become the important contents of this worldwide taxation reforms.With the development of our national economy,a certain of sluggishness in the construction of the taxation has been exposed.The rough design and the low management of the individual income tax restrict its functions seriously.The situation of the development of the individual income tax in our nation falls far short of the claims of the principle of efficiency impartiality and finance at present.So the reform of it must be enforced.IV.Conceptions and suggestions on the taxation perfection of our country's individual income tax( i ) Balance of the impartiality and the efficiency of the tax systemdesign of the individual income tax.The crux of the design of the tax system is that how to realiaze the impartiality and efficiency of the taxation.The selection of the taxable base,the progression of the tax rate,and the exempt and deduction items will bring about different results of the promotion of the horizontal impartiality and vertical impartiality.The neutral taxation has become a priciple of the reforms in the developed countries.But we shouldn't imitate them for the imperfection of our national market.To put in a certain of taxation costs is necessary as for improving the social impartiality.lt is the thinking tostick mainly to impartiality while making efficiency subsidiary in the individual income tax constrction.(ii) Regulation in the range of the taxation.The taxation range ofour country's individual income tax is much smaller than the vast majority of countries.Too much of the exempts embezzles the taxable base and cause unfair tax burden.lt also aggravates the difficulties of the collection and management of the taxation.This dissertation puts forward some suggestions,such as to replace the enumerated taxation items with the exempt lists,to put the privately owned small enterprise andcontract operation tax under the corporation tax,and to abolish the exempts of the labour reward and other items.(iii) Adjustments of the starting spot of the taxation.Being restrictedby the level of our national economy,it is not suitable for admit the individual income tax as a public tax.The collection focal point should be put on the higher income crowds.We should enforce the management of the higher income stratum by perfecting the tax system and strengthening the collection.lt is proposed to elevate the starting spot from 800 yuan to 1700 yuan or more higher level and prescribe a floating range for any district to decide by themselves.( iv) Regulation of the tax rate.To weigh the efficiency andimpartiality relates to how to design the progressive tax rate system.Consulting the international trendency of the taxation reforms,it is suggested to reduce the highest marginal tax rate of the incomes assigned to the comprehensive income and eliminate grades of the taxrate.Besides,we should fix a reasonable tax rate of the incomes which assigned to the classified income.( v ) Selection of the collection models.The synthetical system has apositive function on promoting the vertical impartiality,but it is in need of higher quality of the management and taxpayers.The classified system can reflects the horizontal impartiality and can be conveniently managed,yet the progression of its rate is weak.Though the synthetical system represents the developing tendency of the collection model of the individual income tax,we'd better execute the classified system now lest the backward management falls behind the advanced tax system.For the conditions of adopting the synthetical system hasn't been possessed,it's best to take the classified system to keep a basic impartiality and wait for the opportunity of the transformation to the synthetical system through the perfection of the circumstances.V .To Strenghten the reform of the individual income tax management( i ) Importance of the individual income tax managements.Thegoodness or bad of the tax system depend on the execution of it.We must avoid to commit the mistake that concentrate our energies on the modernization of the tax system and policies,while treating the collection management and tax payers' pursuant to it far unimportant.Most of the problems of our individual income tax relate closely to the capabilities of the collection managements and surroundings.In the future construction of it,we must enhance the reforms of the managements to make it entered...