The individual income tax plays an extremely important role in every nation’stax system all over the world. Its revenue regulating function could narrow the incomegap, alleviate social contradiction, and promote social harmony under the conditionthat in our nation the income gap between the wealthy and the poor continuebecoming broad, polarization phenomenon more and more serious. Tax fairness is oneof the most basic principles, and it is helpful for improving the social fairnesseffectively. The lower the individual income tax’s basic line is, the more people willbecome tax payer, and the more tax fairness will be reflected.The first chapter which is consisted with two sections mainly shed light on thetax fairness fundamental theory, the first section elaborates its connotation andessence, its connotation is make sure that every tax payer’s revenue is in accordancewith their individual capability, and make sure of the balance among different taxpayers. The principle includes horizontal and vertical fairness principles. Thehorizontal fairness is to levy the same payers with the same methods, the verticalfairness is to levy different ones with different ones, and their points are different, theprinciple is to realize the unity of effectiveness and fairness by combining the twosub-principles. The second section mainly research two criteria of tax fairnessprinciple: benefit and load indicators. Benefit principle and load principle separatelyreflect the tax load problem from effectiveness and fairness ways, which is base ofrealizing the standard of individual income tax.The second chapter introduces the general theory of individual income tax,including two sections. The first one explains the implication of individual incometax’s regulating mechanism, which analyzes individual income tax’s regulatingfunction. The second analyzes the specific implementation method of this function,which is comprised of tax payer, cost deduction, exemption baseline and tax rate.The third chapter elaborates the problems that exist in individual income taxregulating mechanism overseas, such as USA, Deutschland and Japan, by analyzing and comparing their history and development, some experience is summed up, andthis provides a reference for our nation’s personal income tax, which pinpoint thedirection for our tax system.The fourth chapter mainly analyzes the main problems and defects of ournation’s individual income tax regulating function. Firstly, the tax pattern fell behindand cannot satisfy the tax need. Its limited tax scope determines that the effectivenessis low, which cannot realize its regulating function. Secondly, our nation’s costdeduction system neglected many family factors, which adopted the same standard,disconnect with reality; Thirdly, our nation’s tax rate classes are various, progressivetax is too high, the tax rate structure isn’t reasonable enough, the tax base is not wide,the income that is taxable needs to be defined scientifically; Fourthly, individualincome tax’s management is directly related to its regulating function’s realization,our nation’s individual income tax management have faced many problems, forexample, the declaring system isn’t sound, tax agent system is not perfect, penalty istoo light, tax consciousness is light.The fifth chapter proposes some viewpoints which aim to perfect the mainproblems that exist in the current individual income tax’s regulating function,including the establishment of mixed tax paying system pattern, reforming current taxrate system, expand tax base, perfect cost deduction system, enhance the exemptionbaseline, strengthen the management directing to individual income tax’s collection. |