On The Theory Of A Flat Tax On Personal Income Tax Reform Forward,

The income tax stemmed from the 18th century's Britain. 200 for many years, the income tax in the collection financial funds, the adjustment division of income, the regulative economic aspect has played the prominent role, is occupying the extremely important status in the modern tax system. But, in develops and in the consummation process, the obtained tax system becomes gradually is complex and is tedious. Regarding this, US Stanford University economist Robert Hall and Rabushka initiates "to cut the tax rate, to expand the tax base, the simplified tax system positively, causes the tax revenue neutrality, richer efficiency" thought. The single tax has "the unitary rate, the excise tax base, the neat tax base" three big characteristics, happen to meets this kind of condition. After the single tax theory is published, in 1861 tax reform bill's releasing had the material effect to US, countries, the area and so on Jamaica, Russia has also utilized this thought to carry on the varying degree reform to our country obtained tax system.China's personal income tax system start is quite late, but since implementation near 30 years, in 1994 the tax reform, along with social economy's rapidly expand, has had many questions particularly, in the society carries on the reform to the personal income tax the call to grow to ever greater heights.This article introduced the single tax produces the background, the content as well as in partial national, the local practice situation, induces the single tax "to cut the tax rate, to expand the tax base, the simplified tax system, causes the tax revenue neutrality, richer efficiency" thought. Inspects the Chinese personal income tax system's formulation and the operational practice, has analyzed the domestic and foreign social economy to the personal income tax reform direction influence, proposed in uses the single tax theory under the premise, personal income tax's tax rate, the level distance, the expense deduct, reduce the volume and the collection method adjustment content. The major point includes:First, regardless of the single tax theory practices from the theory stratification plane by the proof is feasible. Especially it "cuts the tax rate, to expand the tax base, the simplified tax system, causes the tax revenue neutrality, richer efficiency" the thought has to China's personal income tax reform profits from the significance.Second, China has formulated the classified tax system's personal income tax system in the long-term development practice. This system to enhanced the country tax revenue, the adjustment division of income has played the huge role. But, along with the Chinese economic society's fast development, the present individual income system cannot adapt these development gradually.Third, in China's socio-economic development process, the domestic values, the financial circumstance as well as the international pressure of competition and the historic experience, for has finished the preparation take the single tax theory as the leading personal income tax reform.Fourth, profits from the single tax theory to carry on the personal income tax the reform to give dual attention to the tax revenue system and the tax revenue collects two stratification planes. Only then can achieve the reform goal truly like this.