Learn From International Experience, Improve Our Personal Income Tax System

In recent years, with the constant development of our country's socialist market economy,disparity of personal income distribution was widened gradually, which made unfavorableinfluence both to the social stability and national economy's sustainable development.The tax revenue is an important component of fiscal revenues, and crucial adjusting andcontrolling means, which is the "stabilizer" of social economic development. Individual IncomeTax is one kind of direct tax, and a policy tool used to regulate personal income distribution.Since the day Individual Income Tax was levied, it has played an important role in organizing thefiscal revenues, regulating income distribution. However, with the promotion of reform andopening-up day by day, our country's Individual Income Tax system can't already meet the needof the latest economy development. Modification and completion of the system are extremelyurgent. Choosing the right Individual Income Tax system can not only regulate incomedistribution, encourage the laborers' enthusiasm, but also push the development of the wholeeconomy.This text proceeds from the production and development of Chinese Individual Income Tax,and point out the existing problems and their reasons in existing Individual Income Tax system.Draw lessons from foreign theories and some advanced methods at the same time, and explorethe direction and measure of our country's Individual Income Tax transition. It also means thatIndividual Income Tax System should realize the function of the fiscal revenues and regulatingthe income distribution function, transform from classifying resulting tax system to thecomprehensive resulting tax system, insist on the principle of wide tax base, low tax rate andappropriate burden. Besides, also need to strengthen collection and management in order to makethe Individual Income Tax become one of the strong tools which promotes China's socialistmarket economy to move ahead steadily and smoothly.