Optimal Design For Chinese Personal Income Tax Policy

China's current personal income tax system established in 1980, when the legislative purpose is mainly to meet the needs of opening up, foreign workers as a major collection targets, under the relatively high cost of deductions, tax our citizens reach the standard of basic.Today, as China's urban-rural income levels and the widening income gap, inadequate classification of the tax system has become increasingly prominent, reform has become increasingly strong.May 2009, the State Council Development and Reform Commission approved and transmitted "on the work of deepening economic restructuring in 2009 the views of the notice" that accelerate the tax reform, the establishment of a fiscal and taxation systems conducive to scientific development, research to promote comprehensive and categorized combination of personal income tax system, personal income tax reform, fiscal theory of circles has become the topic of universal concern.In this paper, the theory with practice in research methods, personal income tax system in the optimal design and theoretical analysis carried out on the national personal income tax system based on Bijiao analysis of China's personal income tax system gives a comprehensive and in-depth research.Summed up China's current individual income tax problems and find appropriate ways to optimize our income tax system is the purpose of this study.The thesis is divided into six parts, each part of the main content and main points are as follows:First part, personal income tax system optimal design theory.Efficiency and equity is a personal income tax system design goal.In the process of designing the tax system is the "efficiency" and "fair" to make a choice, or both, for the limitations of research methods, optimal tax theory point of view before the general was "fair" and "efficiency" balance between, after including the mechanism design theory has basically incorporated the views of both efficiency and equity. "Income source said," and the "net value added, said," is the theoretical basis of assessment mode, in recent years, both in the tax base to show convergence. A country, the specific choice of a tax model, which is a combination of factors influence the results, at this point, choice of tax unit and tax model similar to the pattern of choice.From the theory point of view, select the "personal" or "family" as the tax unit, the theoretical basis of equally matched.In determining the tax base around the world is basically "H-S" rule, the cost of deductions, the general livelihood, including compensation and deduct the costs of two parts.Personal income tax rate is designed to optimize the design of an important part of the tax equity objectives into the design of the optimal scope of individual income tax rates, Cede obtained through the study of nonlinear income tax, "inverted U" rate structure.Second part, China's current personal income tax system problems. Overall, the proportion of income to national income and labor remuneration in primary distribution, the proportion of the declining trend reflects the personal income tax system and administration in China there is reverse-conditioning.As the current tax system is adopted classification, the contrary to the principles of fairness and efficiency, in the scope of taxation, fees deduction, the tax rate so there are many problems.Third part, Construction of personal income tax system in international comparison.Personal income tax is the tax levy countries in the world, it originated in the West and to the West is more complete.China to introduce such a tax, a relatively short history, have begun to take the framework but need to be further improved.Therefore, to explore our personal income tax reform and improve the system, on the horizontal comparison of the tax system becomes very necessary.This chapter of the Western countries were the income of individual income tax status, tax model of choice, the choice of tax unit, the determination of the tax base, tax design and collection methods and other aspects, so as to optimize the reference system of Personal Income Tax.Fourth part,The Evolution of China's individual income tax system.After the founding of this chapter on the evolution of personal income tax system in China experienced the establishment, development, harmonization and constant improvement of the process made a brief review.Fifth part,China's personal income tax system optimal design.This chapter includes two aspects, one of China's individual income tax system should follow the principle of optimal design, the second is to optimize the design of specific programs.The author believes that the combination of comprehensive and classified personal income tax system should be in China's current personal income tax assessment model used in the paper on the overall classification of the scope of preliminary; in a taxable unit of choice, for tax policy objectives and ourthe actual situation, the current system should continue to take personal declaration to the conditions are ripe, you can transition to a free report period; in determining the tax base, we should broaden the scope of taxation, regulate fees deduction; in the rate design, should be fully reflected efficiency and equity in order to better play to the function and role of personal income tax.Sixth part,individual income tax system the basic conditions for optimal.Implement comprehensive and classified personal income tax system and social conditions necessary for collection of personal income taxes based on the Reform of the basic conditions for success.View from the collection and management conditions, including: Personal Income Tax model; self-declaration of incentive policies; supporting measures construction and personal income tax collection and management system; from the social foundation of view, including a sound legal system, a comprehensive tax awareness and tax services, socialization.