Study Of Perfect Individual Income Tax Law Of Our Country

Individual income tax, is a kind of tax which levies all kinds of tax payables from the individuals obtaining within Chinese borders. It is a general levying of tax categories in various countries in the world. In our country, as the development of market economy and the improvement of people's living condition, individual income tax has become an important part of our country's tax system. It has played an important role in collecting financial revenue and adjusting individual income. However, individual income tax is a young tax category, the development of individual income tax has been limited because of our country individual tax law system. Under the circumstance of socialism marketing economy, while increasing the government's financial income, it is exposed to public that the current individual income tax system does not play its role well in regulating the unfair income distribution system and the huge gap between rich and poor. To reflect the Fair principle of Tax, to eliminate the unfair imposition and enlargement of the gap between the rich and poor are essential to maintain the social stability and harmony and to realize the joint wealthy throughout the country. has been promulgated since year 1980, it has been revised five times until now. Though the adaptable ability has promoted more greatly than last years, it still has a lot of problems and is unfit socialism market economy. Thus, it is an important measure of ensuring social economy developing under macroscopically control of our country that how to perfect the individual income tax legal system.This thesis from an angle of analyzing legal theory, firstly expounds individual income tax's definition, basic characteristics, functions, legal principles and three kinds of taxation modes, from theory to practice, analyze in the ways of systematic analysis and comparison research, then analyzes the present situation of individual income tax legal system through historic development and nowadays basic problems in the aspects of taxation mode, cost deduction, tax foundation, tax rate and tax levy, links the experience of overseas individual income tax, at last brings forward specific measures to perfect our individual income tax: 1. Reform the taxation mode to substitute the classified taxation with the classified and comprehensive taxation. 2. Adjust cost deduction. Take family as taxpayer unit, set floating range of deduction, consider comprehensively taxpayer's family economic burden and eliminate superior national treatment to minimize the area difference and cope with the economic instability. 3. Reduce rate structure. Take broad tax source, low tax rate as principle to insure fair tax capability. 4. Intensify of levy and regulation. Perfect twi-report system, strengthen supervisor system of income tax, enhance penalty force to ensure the best executive efficiency of tax levy.