Perfect Our Country Personal Income Tax System Research

June30,2011, the11th National People’s Congress Standing Committee of thetwenty-first session adopted a decision on the amendments to the <IndividualIncome Tax Law> formally implemented from September1,2011. Implementationof the new tax law on the one hand allow a greater degree of lower-middle class outof the taxpayer continue to increase the collection and management of high-incomeearners on the other hand, is beneficial to adjust and perfect the existing personalincome tax system. But we can clearly see that this revision is still only in ourpresent level of tax collection is not high, the taxpayer self-declaration of taxawareness and ability to pay is not the actual situation in a second best optionrelative to personal income tax in China reform direction and at the present stage ofChina’s social system "and classified" personal income tax to the direct tax to play amore active role of regulating income distribution gap compared there is a big gapbetween the need to further reform and improve.In this paper, the analysis method is to build a suitable theoretical framework, andthrough the collation, comparison and analysis of large amounts of data, find theproblem, and ultimately propose reasonable measures recommended, specific ideasare as follows:Introduction of the first chapter with background research background andsignificance of this question.The second chapter is the theoretical guidance andresearch basis of clear personal income tax reform; Chapter III is to promote thecourse around the reform of China’s personal income tax introduced by the Analysissummary of the achievements of China’s tax reform; Chapter IV is based on thecurrent personal income tax classification of the tax system defects, combining theactual operation will focus on analyzing the personal income tax narrow base, highertax rates, collection and management of defects, costs less unreasonable and limitedplay a revenue adjustment function named in the direction of deepening the reformof a tax; the fifth chapter by summing up the tax on behalf of the United Statesrunning a more mature on tax reform, reference and inspiration, including tax modeloptions, costs of the standard deduction, the tax base and tax reform and trends; Thesixth chapter is a combination of the above analysis, clearly China tax reform toachieve by the "Category" comprehensive and classified the combination of theobjectives of the reform of the tax system paradigm shift, and must adhere to theequity and efficiency principles as the basis for few suggestions and ideas toimprove the tax reform. First, the proposed design principles and the specificcontents of the comprehensive and classified the combination of income tax model.Second, we recommended that further broaden the tax base of personal income tax,expanding the adjustment range, and to fully enhance the regulatory role of theincome; Third, we proposed to further improve the rate structure, reducing tax ratesand reduce the progressive levels; Fourth, we proposed to optimize the tax deductionand tax credit system design content; Fifth, to further improve the tax reportingsystem, to the gradual establishment of a sound tax administration system.