Reform Of The Personal Income Tax

Personal income tax as a direct tax is a tax levied on taxable income of individuals as a tax, a "social and economic stabilizer" reputation. With China's rising income and living standards to improve the individual income tax has become a concern for most people the tax. Since the introduction of personal income tax in China, increasing revenue, adjusted personal income distribution, social and economic stability has played no small role. But because of the existence of personal income tax model tax model unscientific, unreasonable rate design, cost less systems, and collection methods are many loopholes and other issues, the development of personal income tax did not fully play its due functions. The paper presents a theory of the contents of tax, described China and the U.S., UK personal income tax development process, model system, development status, the use of comparative analysis, drawing the British and American personal income tax, personal income tax system in China that there were some problems for the existence of these problems, combined with China's actual conditions, by improving the development of China's personal income tax proposals.This article is divided into six parts, the first part is introduction, mainly on the development of China's current economic situation, research the background and significance of personal income tax; the second part is the personal income tax aspects of domestic and international literature review, the Western Utility theory, optimal taxation theory, financial exchange theory, mechanism design theory to summarize the results of some research on the basic viewpoints of scholars cited; The third part is an overview of the basic theory of personal income tax, described the basic theoretical knowledge of personal income tax and concepts, and detailed the personal income tax revenue organization, regulation of personal income distribution, social and economic stability of the three major functions; fourth part is the international development of personal income tax. Mainly the United Kingdom, the United States and other countries, personal income tax and the current status of development experience to sort out the history of our country to start review individual income tax, personal income tax system of our current tax rate, an overview of collection mode; fifth part is a comparative analysis method, through the British and U.S. personal income tax structure of the analysis points out the model of personal income tax in the tax system, tax design, tax scale, adjust the status of personal income distribution, cost deductions and problems in collection and management tools. Establishment of a "taxable income multiples-the average tax rate" function, using the two poverty lines to calculate the taxable income multiples, to exclude from the income level, differences in currency, exchange rates and other causes of imbalance, mainly for middle-income groups contrast between China and the United States, the average tax rate of personal income tax; sixth component is the author of his personal income tax reform of some of the considerations and proposals put forward in terms of from seven to reform and improve the individual income tax system:(1) integrated with the classification of mixed-parallel income tax system; (2) increase awareness of citizens take the initiative to pay taxes, strengthen supervision and inspection; (3) broaden the personal income tax base; (4) optimization of individual income tax rates; (5) a sound system of expense deduction, the implementation of tax indexation; (6) establish a scientific and efficient collection and management system; (7) improvement of personal income tax system supporting measures.