Problems And Reformation Of China's Individual Income Tax

Individual income tax, which is playing an important role in the modern tax system, is the dominant taxation in the majority of the developed countries and one of the main sources to the fiscal incomes of many developing nations. Every functions of it are being widely used in the practices of macroeconomic regulations and control.Our country's individual income tax levy started quite late, but is developing with high speed .Now it becomes the fourth largest tax of our country. Along with the rapid economical development, particularly after our country's entry to the WTO, the present individual income tax system could not meet the demands of the economic development, and need be reformed. 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 individual income tax really give the function of accumulating 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.Firstly, in order to establish a base for the following study, the article introduces some essential theories, such as, the theory of tax criterion, the optimal income tax theory, the theory of tax function, etc. Also, introduce the meaning of the individual income tax. Secondly, form three respects of fiscal revenues function, income distribution function and economic regulating function of the individual income tax, the article carry on research to the function state of the individual...