Comprehensive Tax Reform Research Of Individual Income Tax With Family As A Unit

Individual income tax is China's fourth largest item of taxation and it has played a very important role in raising revenue, socio-economic stability since the introduction in 1980. But the function of regulating the distribution of income did not achieve the desired result and it has become the social focus of tax reform. At present, China's individual income tax system is a type of classified income tax model based on individual income tax unit, which considers neither the differences between economic burden of families, nor the actual tax burden on the taxpayer's ability. Consequently it has deviated from the objectives and principles aiming to adjust residents'income and equitable distribution of revenue. Based on China's basic condition, the research has investigated the development history of China's individual income tax, summarized its current model, and analyzed its problems. Also the thesis puts forward a series of reform measures on the basis of foreign advanced systems in order to build an individual income tax system compatible to economic development, maximize its role of "adjusting income distribution, easing social inequities ", and to address the increasingly serious problem of income disparity.The thesis consists of five chapters.The first chapter is introduction. It describes the background, purpose and significance, summarizes the research status at home and abroad, sums up the three research directions conducted by domestic scholars and elaborates its train of thought, contents, methods, and innovation, etc.The second chapter is an overview of the basic theory of individual income tax system, outlining its concepts, theoretical basis, connotation. And the classification of its model is conducted from the perspectives of structure and individual tax unit. Finally the individual and the family as a unit of individual income tax system are compared.The third chapter deals with the analysis of China's individual income tax system, which focuses on the weaknesses of the current tax system through the analysis of its development and the current model, comments the problems the current system is facing, and analyzes the necessity and feasibility of comprehensive tax reform concerning individual income tax based on the family as tax unit.The fourth chapter is the research into foreign individual income tax compared with that of China, on the basis of which it is concluded that comprehensive tax reform of individual income tax based on the family as tax unit is the direction of the reform of China's individual income tax system. And the enlightenment of foreign individual income tax on China's tax reform is also summarized.The fifth chapter is the construction of the comprehensive system of individual income tax. A series of reform measures such as stressing the accounting unit of family declaration, perfecting the expense deduction standard and tax rate adjustment, strengthening tax collection and administration means, establishing and perfecting the legal system of the family to declare, which lays the solid foundation to construct the comprehensive tax system of individual income tax based on family units.