The Study On Labor Income Tax

With the further development of Reform and Opening-up in China, the market economic has caused tremendous changes in people's income structure. There are increasingly earning resources and income forms. Even though, the labor income is used to be the dominating part to support their lives. Therefore, the study on labor income tax will play a significant and practical role in the accommodation of the income distribution and building of a harmonious society.There have been many labor income tax items in the existing individual income taxation system, such as the wage and salary income, labor remuneration, author's remuneration, and independent earned income part in the income derived by individual industrial and commercial households from production or business operation. So many different involved items result in unfair tax-bearing. Compare with the capital gain tax on stock transfer earnings, the current tax-bearing of labor income is much heavier. What" more, there are many limitations in the present individual income tax collection and administration system. Out of consideration of tax system simplification, the paper brings forward a new conception "Labor income tax", basing on consolidating and extending the existing relevant taxation items. Learning from the advanced international experience, the paper mainly puts forward some policy suggestions to rebuild a new labor income taxation system, mainly from object of taxation, legal deductible item and tax rate three aspects. Furthermore, the paper applies relevant system economics; information economics and taxation obey theories to improve the labor income tax collection and administration system, as well as, the relevant supporting measures.