The Study Of The Individual Income Tax System Reform In Economy Transformation Period Of Our Country

Our country is in the period when is making the transition from planned economic system to the market economic system, in this special period, the personal problem of income allocation is comparatively outstanding. The disparity of the personal income distribution is too big in the transiting course, it will produce a series of social and economic problems, hindering economic normal running. This kind of income gap is mainly because the economic system transition, the uneven macro economic policy, non- balanced economic development strategy, unequal social security and various defects of tax system. Though, the resource distribution mechanism of market economy is the objective cause that an income gap forms, but this is completely different from the unequal result of western developed countries that is caused by the market competition. Obviously, unfair distribution in our country includes the characteristic with very strong economy transformation period at present. So, our country needs to strengthen macro adjustments and controls, give full play to the leading role of the Individual Income Tax regulating income distribution under this new situation and control the income gap in the range that the society can bear. We should define the goal and principle of the reform of the Individual Income Tax in transformation period, use the experience of Individual Income Tax system from abroad which is suitable for the national conditions, then proceeding from reality, set up scientific and feasible Individual Income Tax system which has a periodic character to realize the unique task the society equity in transformation period of our country finally.