Improvement On Individual Income Tax Of China Law System

The individual income tax is a direct tax. It is the main income of the country's financial revenue under the market economy. The individual income tax law of China was implemented in the 1980s. It underwent a developing-from-nothing and few-to-many process which constantly goes from strength to strength. Because of the transformation of the economic system and the reform of the national income distribution system, our personal income distribution pattern has changed remarkably. Problems such as the relevant distribution, the imbalance development and the increasing income gap are standing out. Although the individual income tax law has been amended for several times, there are still many problems existing nowadays, which include: the function of the individual income tax law is not defined clearly; the classification of the individual income system is not designed reasonably; the deduction system is imperfect; the design of the tax rate structure is complex; the defining of the taxable income is not clear, the collection mechanism falls behind, and the collection laws are imperfect, etc.This essay put forward several suggestions on the improvement of the individual income tax on the aspect of the analysis of the existing problems that has existed in the individual income tax law system now from the perspective of its tax principles. The several suggestions include: on the one hand, from the perspective of the tax system, change the current tax system and promote the mixed income tax system that is combined with synthesis and classification; manipulate the taxable income scientifically and establish the expense deduction system perfectly; adjust the design of the tax rate and reduce tax rate classes; and the last, broaden the tax bases and increase more items of the taxable income. On the second hand, from the perspective of the improvement of the collection mechanism of the individual income tax, enhance the system of the personal income tax return and the two-way declare mechanism of the withhold and remit; manage the tax agents; enhancing the management of the sources of the individual income tax, and further implement the withdraw and remit system; enhance the publicity of the tax laws, increase the recognition of the tax payers to pay taxes consciously; strengthen the law enforcement of the individual income tax. Moreover, accelerate the speed of the information construction of the individual income tax law.The individual income tax is regarded as"Robin Hood Tax"in the western countries. I would like to offer some effort to the process of improving the individual income tax system, thus achieve the target of developing the function of"rob the rich and assist the poor".