The Research Of Innovation And Development Of Domestic Individual Income Tax

Individual Income Tax (IIT) was aroused in British by the end of 18 century. After more than 200 years development, it becomes a popular tax used among worldwide countries, not only the main tax in western developed countries with market economy, but also the essential tax item within developing countries.IIT is levied in China in a late manner and act as an important tax item, along with high-speed development of social market economy in present stage in China and continuously development of tax system innovation, IIT has been acting a obviously role in adjusting income allocation and gains comprehensive attention of community. However, the short term of theoretical research and practice in IIT, as well as diversification of personal income, makes the management of IIT more and more complex and difficult. At the same time, the principle of impartially adjusting income allocation has been doubted which results to imminent developing and improvement for IIT. So, this paper provides realistic help for meliorating IIT management, enhancing fiscal income, particularly adjusting the income tolerance of society members.This paper is divided into four parts. The first part analyzes the summary of IIT, including developed history, features and functions. The second part analyzes history and present situation of China, theoretically expounds the objective, function, component elements of IIT and points out its imperfection and shortcomings. The third part refers to the theories and the successful experiences of individual income system reform in other countries, based on tax mode, cost deduction, tax rate and levying. Finally, in fourth part the author set forth some ideas and suggestions about the improvement of the individual income tax law in China and how to improve the law of IIT in a new step of the Chinese tax system reform.