Empirical Research On The Financial Functions And Regulatory Function Of Personal Income Tax

Three decades of reform and opening up, China’s economy and society with rapid development and continuous improvement of the living standards of the people’s material and spiritual civilization. Along with the continuous progress of social civilization, people more and more attention to social issues and sensitive to the issue of income distribution gap also become the focus of attention of the public and scholars also be given due attention and expectations as to participate in the redistribution of personal income tax.In this paper, starting from our reality, asked the following viewpoints:the financial capabilities of the personal income tax is the regulatory function of the derivative function, regulating the function can not achieve without the financial function; regulatory function of personal income tax is based on the redistribution function the strength of the financial function determines their assigned functions, financial functions of the personal income tax, and regulatory function is one of the two; analysis of the function and regulation of the function of the status quo of China’s personal income tax fiscal derived function of China’s personal income tax is limitedits role in the regulation of income distribution. The main reason for limited personal income tax to China has not yet established a mature market mechanism and orderly Distribution According to Factors regime, while turnover tax based tax system, personal income tax makes the development of space is even more limited.Theoretically, the personal income tax is to adjust the income gap between the ideal types of taxes, is the most effective tax instruments. Both in theory and in practice, we can not be divorced from its financial functions to talk about the regulatory function of the realization of the financial function is the basis for protection of its regulatory function, the social development of China’s current economic reality and the tax collection levels, and in another perspective restrict the realization of the personal income tax function, making both its financial function or regulatory function is still very limited at this stage. In an objective and fair to adjust the income gap on the understanding of the personal income tax, combined with foreign experience in reform and China’s reality, and gradually improve China’s personal income tax, and its financial function and regulation functions can scale new heights.