Russian Individual Income Tax Reformation And The Enlightenment To China

Individual income tax system shoulders the responsibility of obtaining fiscal revenues and regulating the gap between the poor and the rich. In present, with the increasingly widening wealth gap,more and more people set their sights on individual income tax system. But it’s a pity that because of the tax system’s problem, individual income tax system can not regulate the income disparity between high-income level and low-income level,instead,the phenomenon of reverse regulation that the low-income level become the main force of tax has appeared.In function of obtaining fiscal revenues, individual income tax system also can’t show much satisfactory,the current individual income tax takes a proportion of the financial revenue is less than7%,which forms a sharp contrast with western countries. Although individual income tax system has been modified several times in China,there is still limitations of some detail problems.If individual income tax system wants to play its function absolutely, the system must be reformed in an all-round way. The Russian individual income tax system reform has caused the world focus, this article dose some analysis and research on this reform,finding rational and deficiency,witch may help our country to reform the individual income tax system in future. This article includes several aspects as follow:The first chapter:basic theory of individual income tax system.This article frist expounds the individual income tax system with historical development, principle, function and so on,mainly analyzes the problem of tax rate.It holds that the adoption nowadays of excess progressive tax rate in our country does not coincide with the realistic needs, although the nominal tax rate seems too high, the practical tax burden gets lower in fact,which because the sources of high-income level are dispersed,and try all kinds of ways for tax evasion. On the contrary, low-income level have a single source of revenue and widely adopt the way of original withholding,which can hardly choose tax evasion. However,if a much lower proportional tax rate is carried out,the motivation of tax evasion in high-income level will be decreased and the tax base will be increased,so there will be more promotion for playing the function of individual income tax.The second chapter:the basic situation of the Russian individual income tax system.The basic situation of the Russian individual income tax system was similar to our country before the reformation,such as lower tax compliance, serious tax evasion and enlargement of poverty gap.In order to change this situation, the Russian government has carried on a complete reformation, measures include:abolishing excess progressive tax rate, canceling unreasonable tax preference,adding the items of expenses deducting,which obtains a positive result.The third chapter:enlightenment from the Russian individual income tax reformation to China.Although the Russian individual income tax reformation is very worth learning for our country,there are still some deficiency in the reformation,such as the excess tax preference as before,the falsehood of taxpayer’s needs on the expense deduction,which should be pay more attention during the individual income tax reformation in our country.The fourth chapter:the design idea of individual income tax system in our country. The thought of our country’s tax system reform includes simple tax system, wide tax base, low tax rate and rude administration,in order to achieve this goal, the individual income tax system must be reformed completely. The reformation should not only involve the mode of taxation,tax rate, the object of taxation and the tax system,but also improve a series of supporting measures,such as strengthening the information construction of tax authorities, perfecting the information provision of the third test institution,and so on.