Improvement On Individual Income Tax Of China Law System

Originating from England in 1799, Individual Income Tax have already become a great major tax of the most nations in the world through over 200 years' development. The quick development of the Individual Income Tax changes the traditional tax system, enhances people's tax consciousness. Now, the every function of the Individual Income Tax is extensively used to the macroscopic control in many countries.The main function of Individual Income Tax law is to adjust income difference, which is also the basic legal way to realize distribution justice. In the western market economic countries, the situation of Individual Income Tax laws and regulations is regarded as an important standard of maturity of a country's tax laws and regulations, since Individual Income Tax is a main tax and is directly connected with the interest of the people. But with the development of economy, the current Individual Income Tax system has appeared many shortcomings because it cannot fit in with current situation. There are narrow tax scope, simply tax deduction, unreasonable plan of tax rates, complex taxation system, difficult collection, severe tax evasion and weak adjustment on deficient taxation system, which means personal income tax has not better followed the principle of equity of taxation and has not played an important role on adjusting income allocation. So we should further reform and perfect present Individual income tax law system so that it can function well.The article will study the perfection of Chinese Individual Income Tax law system from following four chapters.Chapter 1 is the basic theory outline of the Individual Income Tax. First, beginning with four stages of producing and establishing, enriching and adjusting, standardizing and unifying, and reforming and perfecting, the development process of Individual Income Tax law in our country is reviewed and its related function during the its practice process for more than 20 years is analyzed. It mainly introduces some concepts on Individual Income Tax law and reasons of Individual Income Tax law. The object of Individual Income Tax is the personal income from all kinds of fields. As an important method on the management of the economy, Individual Income Tax has a deep effect on both macroeconomic and microeconomic scales. All the theories discussed in this chapter will be basis for further study on the improvement and reform of the Individual Income Tax system.Chapter 2 is international comparison and reference of Individual Income Tax. First, according to the Individual Income Tax collection of some nation's datum, such as the United States, Japan etc. Proceeding horizontal and lengthy comparison, which provides many useful experiences for our country. The main comparisons include five aspects: Tax mode, deduction item, tax scope, tax rat and administration system, etc. On the basis of international comparison of tax factors, conclude regulations and make conclusions. Finally, elaborate the foreign Individual Income Tax development trend and the revelation to our country.Chapter 3 is the analyzes of the Individual Income Tax current problems and reasons in our country. Firstly, it cannot fully carry out the legislative principal of the levy mode for Individual Income Tax, and easily lead to evade tax rightfully, lack elasticity to economic. Secondly, expenses deduction of Individual Income Tax is unscientific. Some expenses are not deducted, such as, estovers, alimony, education expense, insurance, and so on. This law and system also make taxpayers disassemble income to escape tax rightfully. Thirdly, the tax scope is too limited. Fourthly, Individual Income Tax rates structure is complex, tax is not equity, marginal tax rate is so high, tax rate is not equal to the same income, and so on. Fifthly, the law system of the administration of tax levying is faultiness. Taxpaying concept is intensity, declare system is not full, Information way is draggled, punishment is not strict, and so on. These lead to evade tax seriously and the function of regulation allotment the income can't be fully played.Chapter 4 is a textual point of this paper; on the basis of the above three parts combining with realistic circumstance of our country. How to perfect the law system of Individual Income Tax proceeded to study. Beginning with the conditions of the State, draw lessons from the advanced way of abroad, guarantee continuous stability transition, and attain double function to regulate and organize the income etc.the concrete suggestion reforming and perfect system of Individual Income Tax law is put out, including the adjustment tax system the mode, simplifying class and times of the tax rate, and lowering the limit tax rate, unifying the standard provision to reduce and to deduct, increasing the basic deduction standard, and the related measures of reforming and perfecting the system of Individual Income Tax law,etc.The research character and method of the thesis primarily include comparison analysis, statistics analysis, and theories to contact the actual analysis and induce. The thesis tries hard to structure clear, center outstanding, well-knit logic and language succinct.The goal of this research is a full usage of the positive functions of Individual Income Tax on political, economic and social scales, which includes perfecting the Individual Income Tax system for the requirements of globalization of economy and development of market economy, adjusting the income distribution, strengthening the collection and administration of taxation, and establishing a stable treasury. In order to realize this goal, the measures are presented as following:First, perfect the tax system. Establish tax method join with synthesis and collection by item; adjust deduction expenses standard; adjust the tax rate scope and decrease tax rate; extend the tax scope; norm the tax-free item; choose with the household in the interest of the paying taxes unit.Next,strengthen the taxation system of collection and administration. Improving Individual Income Tax declaration system; establish the tax information system; enlarge punishment to the behavior, which break the tax law; establish paying taxes man's coding system; enhance the management of cash; normally develop the tax act organization; establish the personal reputation system.The realistic meaning of this thesis lies in how to draw lessons from western nations to standardize and optimize a sound Individual Income Tax system in China, and to make the Individual Income Tax play a truly important and positive role in regulating the income distribution and constructing a harmonious society of efficiencies and equities.