Reasonable Analysis Of China’s Individual Income Tax Burden And The Improvement Of The System

Tax burden as the core issue of tax allocation areas is the main direction and the starting point ofthe research tax involved in distribution of national income.The tax burden is one of the main basis forcountries to develop the allocation policy and tax policy. Reasonable tax burden is not only an importantfactor of social and economic resources allocation, but also an important prerequisite for tax functionsand roles which can be fully played. China’s macro tax burden on the whole is high, while the individualincome macro tax burden is very low, and the individual income micro tax burden showing aunbalanced condition.The article use the principle of efficiency, taxation functions of play, establish taxpayer awareness,and the principle of tax fairness to analyze whether the tax burden of individual income tax in line withthe above standards, and then infer the tax burden of China’s macro tax burden compared with difficultto achieve economic efficiency, obstructed tax functioning,make the taxpayer awareness is difficult toestablish, and the individual income micro-tax burden is not balanced with the principle of tax fairness,rationality missing, needs to be improved.The low level of china’s individual income macro tax burden is because of the lower proportion ofindividual income tax in the tax system. expanding the proportion of personal income tax is the premiseof fostering a mature market economy, playing the functions of the tax, establishing the concept ofrights and obligations of the taxpayer’s. compared the background of China’s development and thedevelopment background of the Western developed countries, we can see the development status of ourcountry’s tax has a deep underlying causes, and enhance the proportion of individual income tax shouldkeep in a progressive manner to ensure that the overall total tax revenue is the same premise, moderatenarrowing of the ratio of indirect taxes.The premise of rationalization of the micro-tax burden is the change of the specific tax system inChina. First, change the classification of taxation model for dual income taxation model, the object oftaxation is divided into labor income and capital gains of two parts, namely taxation; Second, the expense deduction shall follow the classification before deducting the necessary costs, and thenintegrated to deduct the livelihoods the cost model, and take the standard deduction and specialdeductions for a combination of a specific deduction; Finally, the perfect way of the tax rate structure isreduced and the level distance, reducing tax rates, and promote the rationalization of tax rates betweenlow and high income distribution. A full complement of individual income tax system is the only wayto solve the microscopic uneven tax burden distribution..