The Impact Of China's Personal Income Tax Over National Economy Development

Personal income tax is an issue of substantial value to study theoretically and practically. It is important to study the impact of personal income tax over national economy development from the perspective of efficiency and fair. As one of the main tools to regulate the social income distribution, personal income tax do a direct impact on the individual's disposable income. Reasonable personal income tax system is not only to prevent the distribution gap, but also to promote national economic stability and sustainable development. Therefore, with the statistical analysis of actual situation in China, this thesis firstly analyses the theoretical analysis and finds out the weaknesses of personal income tax system in China.Reasonable Personal Income Tax system is extemely important to develop China's national economy:from the efficiency perspective, the thresholds of wage and salary income tax and tax rates progressive set of labor supply has important influence. The personal income tax, in particular, the interests tax savings to residents as well as the indirect effects of consumption effects of consumption affect the national economy. From the fair perspective, personal income tax, the role of automatic stabilizer, it can promote social equality, stability and economic development effectively.With the combination of current situation of personal income tax and GDP in China, this thesis carries out the correlation analysis and elastic analysis. Recently the personal income tax in China and GDP growth remained at a high state, however the lower proportion of personal income tax seriously weakened the funtions of the personal income tax; personal income tax on residents of the regulating role of savings and consumption has been effectively reflected in the labor supply in 2000 and 2007, but the effect of loss is also very conspicuous; China's Gini coefficient increased year by year, far exceeding the warning value of 0.4, This should serve as a regulating income distribution gap in the personal income tax due to the unreasonable taxation system, it's of great importance to lower the gap between the rich and poor.On the basis of theoretical analysis, the impact of personal income tax on economic development, combining with China's national economic development at the micro and macro level data on the current statistical analysis, this thesis obstains the following conclusions:the proportion of personal income tax due to increase the role of promoting the national economy; the design of individual income tax system has defects, which needs to reform deeply; personal income tax have more space to improvet.Through these conclusions, combined with the actual status of China's personal income tax, and learnt the advanced foreign experience, this thesis proposes the following suggestion on personal income tax reform:the appropriate reform of the tax system, to increase the personal income tax and its proportion of in GDP. The low proportion of personal income tax deficiencies caused by the functions of the current tax system has seriously hindered the development of a tax; the reform of the personal income tax model, classification system of taxation revenue reflects the difficulty of fairness principle; In addition, the reform should not focus on the increase of the threshold, but in the regulation of rates, improving the progressive tax rates; Enhancing the revenue sources to control and preventing the loss of tax; Enhancing the law enforcement efforts to crack down on tax evasion.Through the theoretical and statistical analysis, which the personal income tax influences the national economic development, the thesis shows current personal income tax deficiencies in China, and it is indespensable to take relevant measures to improve the efficiency and fair of personal income tax positively. Furthmore, it plays an positive role in promoting the stable and sustained development of national ecomomy in China.