A Comparative Study On The Legal Systems Of Individual Income Tax In China And The United States

The United States began to levy individual income tax in the year of1913.Seventy yearslater, the first individual income tax law produce in1980in China. Not only increasinggovernment revenue but also adjusting the income allocation have been the two functions ofindividual income tax from the first day. The individual income tax is directly linked withpeople’s incomes. Social stability and unity, fairness of tax burden, the healthy developmentof the market economy and so on. However the drawback on personal income tax collectionmode, tax authorities and the taxpayer’s tax consciousness existing in the personal income taxseriously restricted the function and affect of the personal income tax. Instead the individualincome tax is meant to increase national income in USA, it smoothly realized the otherfunction as well. According to compare the different experience of the United States, it leavethe room of self-reflection for maneuver in China, so improving the individual income taxsystem of our country is put forward.This dissertation consists of four main parts. First of all, this paper makes a detailedintroduction for the background, the purpose, the present situation on research and theinnovation of essay. The second part is about the basic theory of individual income tax systemsuch as basic function, tax model, tax unit and method.Then it makes the comparison of taxadministrative thought and theory between western country and our country. The third partcompares America individual income tax system with ours. Lastly in consideration of thepresent situation, the fourth part proposes some basic thought and suggestions on Legalsystem, tax supervision and tax environment. So as to perfect and improve our country’sindividual income tax system, for example, implement taxpayer-oriented thought tostrengthen the tax authorities’ executive force.