A Comparative Studyonthelegalsystemsof Individualincome Tax Inchinaand The United States

China is during the period of economic transformation when the key is how to adjust income distribution and relax social contradictions. An important fucntions of appropriate individual tax law is to adjust income distribution in order to to reduce the gap in wealth.It’s also critical to gurantee the sustainable development of our society and marketable economy through improvement in stable society and living standards.The recent Giniof0.4indicates that China suffers from the deep gap in wealth because of shortages in legislation thoughts and legal systems. The low income contributes the mainly part of individual tax which prevent the future plan to expand domestic demand.The essay makes use of the method of literature search, comparative studies and empirical study, comparing the individual tax between China and the US and looking for better ways for Chinese tax reform based on the real cases.This essay mainly consists of five parts. The background, the study purpose, the goals and the contents, the major methods used and the present situation would be in the first part called introduction. The second part would be knowledge about the basic legal theories including key concepts, features andfunctions.The third part aims to introduce the legal system of the individual tax of China and the US, concerning the legal system of the individual tax and the development process.Thefourth part is going to discuss the difference of legal system in individual tax between China and the US and also compares the effects of legal system of individual tax in income adaptation, including methods, effects and the reason why it turns out to be so weak in China.Finally, I pay more attention to individual tax improvements and reforms based on the legal system itself and the management information system.