Study On The Improvement Of Individual Income Tax Institution From The Perspective Of Fairness

In recent years, with the constant development of our country's socialist market economy, disparity of personal income distribution was widened gradually, which made unfavorable influence both to the social stability and national economy's sustainable development.Tax revenue is an important component of fiscal revenues of a country and a crucial means of regulating the economy. It is regarded as a stabilizer of social economic development. As a form of direct tax, the individual income tax is a policy tool to regulate fair income distribution. Ever since the individual income tax was levied, it is more important in adjusting the individual income than ever in China, many people pay attention to the China's individual income tax system. The individual income tax's history is very short in China, and in the special period of economy system reform, there are many problems in China's individual income tax system and management of levy. With the rapid economic development, however, the prevailing individual income tax institution cannot keep pace with the present economic situation. It is, therefore, necessary to revise and improve the said institution. Choosing the individual income tax institution that is applicable to the economic development of China can effectively narrow the income gap and promote social justice. In the background of constructing the harmonized socialist society, therefore, to explore the existing problems of the individual income tax institution and put forward the corresponding measures for improvement from the perspective of fairness becomes the theme of this paper.Starting from the implications of taxation fairness, the paper first describes the objectives of regulating income distribution through taxation and the impacts, current situation, and necessities of regulating income fairness through individual income tax. The paper further analyzes the defects in the fairness of individual income tax from the perspective of modes of tax levy, major components of taxation institution, tax raising institution, and the affecting factors. The paper concludes with the measures for improvement to realize the taxation fairness through individual income tax.