Improving Chinese Personal Income Tax Institutions By Analyzing The American And Chinese Personal Income Tax Comparatively

The current American tax institutions have been regarded as the world’s mostcomprehensive institutions of taxation. As the most important tax in the American tax,the various standards and the effect of the personal income tax’s implementation arethe most complete in all countries. Therefore the personal income tax in the UnitedStates could be a research object in order to improve the present situation of China’stax institutions. In this paper, by studying the sets of the law of the American personalincome tax, and from the point of systems engineering as well as the research methodsof project management, after the contained elements are extracted and the relationsamong the elements are divided, both of them could be analyzed. Firstly compare theelements extracted from the American tax law and the Chinese related institutions ofthe tax law. Then the differences between American and Chinese personal income taxelements’ranges and species. Even the definitions and covered contents can becomparatively analyzed. Then the differences between American and Chinesepersonal income tax elements can be found. Secondly by applying the ideas andanalytical methods of systems engineering as well as project management, allextracted elements can be divided and clarified with specific methods. At the sametime the hierarchy of the structure for the elements can be formed. It’s a progressiverelation among them from the bottom to the top. They influent and rely on each other.Finally make the elements in our tax institutions at all levels be compared withAmerican’s. By the comparing like this, the lack of elements of China’s tax and theinadequacies of the existed elements could be found as well as the tightness of theinterface among the various elements. Based on the results of the comparison, therevelations about Chinese personal income tax should be obtained. Revelationsmainly conclude strengthening the legislative work, making the family as a tax unit, using anti-enumeration method to describe taxable income items, making regularindexation adjustments about the threshold and other digital-based standards, usingdifferent tax standards according to the regions, making sure the independent of thetax audit department to the other tax departments, increasing the utilization ofcomputer systems, increasing the efforts of rewards and punishments as well asestablishing a credit rating institution. By these methods to encourage taxpayers toactively and legitimately finish tax duties. Finally target tax institutions belonging toChina can be built.The main content of this article is divided into six chapters. Chapter 1 is theintroduction. It’s mainly about the background and significance of this thesis at first,and followed by the research methods, then finally the research contents and the basicframework are described.Chapter 2 is about the current situation and existing problems of Chineseindividual income tax. It’s mainly introduced from six aspects about the status ofChinese personal income tax. Then elaborate the current problems of our country’spersonal income tax from six aspects.Chapter 3 is about the analysis of the comparison of Chinese and Americanpersonal income tax. It’s mainly about the comparison of the elements constituted aswell as the degree of the close relationship among various elements. It is also stated asthe comparison of the structure of the elements of the personal income tax. Then thedifferences between China and America can be showed. This can lay the foundationfor the next measures put forward. Firstly propose the principle of the analysis of theelements and structure. Secondly it’s about the analysis of the comparison of theAmerican and Chinese elements of the personal income tax. It’s also about theanalysis of the comparison of the composition of the American and Chineseconstituted elements. This is mainly realized by extracting the elements of personalincome tax. Thirdly it involves the analysis of the comparison of the structure of theAmerican and the Chinese personal income tax. It’s also about the composition of thestructure of these elements. The structure will be divided into three hierarchies, namely the base layer and auxiliary layer and derived layer.Chapter 4 is to build and evaluate Chinese personal income tax system. At first,start from the results of the comparison about Chinese and American personal incometax. Build Chinese target personal income tax system by taking America as areference object and based on the situation of our country. It includes the agencies andindividuals involved in the entire personal income tax and their functions and theextent of the objects of the personal income tax as well as the distribution of theelements and structure involved in the process of tax collection and management andso on. After building personal income tax system, evaluate the personal income taxsystem built from the following five aspects like statutory, fairness, scientific, efficient,reasonable principle. It’s mainly started from the advantages of the tax system builtwhich is better than our current personal income tax executed.