Improve The Legislation Of Personal Taxable Income

With the development of China economy, both people's living standard and income have been promoted greatly. Consequently the individual income tax has played a more important role in the total revenue from tax. In fact, perfect legislation for individual income tax will fulfill an important function in gathering financial revenue, adjusting revenue distribution and promoting economy growth. But the tax law of individual income in China now can't meet the need of economy development and construction of tax system; it has become a necessary thing to perfect the system of individual income tax. Individual dutiable income is the key of individual income tax. The thesis studies the basic question of individual dutiable income in factual point, and the author provides his points.The thesis consists of 4 parts.Part one analyses basic theory of individual dutiable income, There are five points about how to explain dutiable income in the theory of tax. The author argues that the concept of "H--S" supplies a more reasonable method to understand dutiable income. The concept of income should be defined as extensive as possible, and all of the earnings of the individual should pay taxes equally in order to accord with the standard of justice and efficiency which is needed by the law of tax.Part two defines the individual income tax in law. The thesis doesn't think that individual dutiable income include legal earnings only. The illegal earnings that has been obtained unlawfully and dominated by taxpayer, which have not been sued at the law, should belong to the dutiable income. At the same time, we should expand thetaxation source of individual income tax gradually in the extent reasonable and available.Part three studies the regulation of charge deduction and subsistence deduction for individual income tax. The thesis think China should adopt the standard of objective deduction instead of predetermined charge deduction.Part four studies the legislation model and the choice of individual income tax system. The thesis thinks that China should take the system of consolidated income tax since it accords with the tendency of tax law's internationalization. At the same time, the law should change monthly taxation into yearly taxation, which can indicate a person's payment ability comprehensively and demonstrate the function in distributing the income justly.