Studies On Savings Interest Tax For Our Country's Residents

From 1999, our country started to re-collect the interest tax by 20% tax rate, because at that time the economy cannot obtain the effective development, the difference of loan and savings was greatly, the speed of economy was slowly and the expense market was not developed effectively. The goal of that policy was impelling the economy to grow, letting the people withdrawal the money from bank and put into the expense or invest area, simultaneously also carrying on the shift finance payment from the high income taxation to the Low income earners to reduce the disparity of wealth and realize the social justice. As a macroeconomic policy which regulates the national economy of our country and adjusts national income structure, interest tax has not served the anticipated purpose from beginning levying for eight years. Personal savings explosively grow. The income differential continues to enlarge. And the function of interest tax stimulating the expense and investment is unoptimistic.2007, our country's economy experiencing variety, The fixed assets investment increased more quickly, the price index soared and so on. Through our country reduced the interest tax rate from 20% to 5%, still didn't change the quick development of economy. Therefore, it is necessary to carry out serious theoretical analysis on interest tax and provide a reliable theoretical basis and decision-making reference for the current policy adjustments.Based on the review and comment on the literature, this dissertation from the economic analysis as the foundation, contrast our country social economy condition before and past of the levying of interest tax and analyze the reasons of our country levying the interest tax policy to ineffective. In end, this dissertation put forward the basic ideas and suggestion of the reform of China's interest tax.The full text is divided into five chapters. The first chapter is part of the introduction to this dissertation. This chapter mainly introduces the background of choosing this topic, overview of the literature, innovation and the significance of the research. The second chapter is part of the theoretical foundation of this dissertation. This chapter mainly introduces the definition and content of interest tax, the principle of collecting interest tax, the effect of interest tax. Chapter three introduces the circumstance of re-collecting interest tax and reducing interest tax rate. Chapter four introduces the circumstance of collecting interest tax in all countries and analysis the effect on our country. The fifth chapter combines with China's specific situation and then puts forward the corresponding countermeasures and suggestions.Under China's current economic development, this dissertation holds that China's interest tax adjustment of the basic policy orientation is not a simple question of reservations and cancellations but insists on that the reform of interest tax should base on the regulation of income as personal income tax and perfect interest tax system and implement the progressive increasing tax rate.