Research On Individual Income Tax Rates In China

Individual income tax is a tax on all kinds of income obtained by individuals. Nowadays, the income gap has become an increasingly serious problem. The individual income tax, one of the most important tools used to regulate the income distribution, garnered plenty of attention and has become a hot topic of China tax reform. After the2011reform it has aroused a heated debate about it. Based on the current research, in order to play the function of the individual income tax better, the combinative tax system model of comprehensiveness and classification becomes the direction of our individual income tax reformation. Under this background, this paper discusses the tax rate to optimize the personal income tax system. The tax rate is the core elements of taxation system, the standards of tax calculation, which reflects the depth of taxation and is directly related to the country’s fiscal revenue and the tax burden of taxpayers. Scientific tax rate is the key to help the individual income tax to become fair and efficient. Studying on the tax rate, is to study on the main optimization approach of the individual income tax, which has important significance in theory and reality.In this paper, considering many factors such as the level of our economy and the development of technology, by using a variety of analytical methods, I give a comprehensive analysis of the current individual income tax rates. Firstly, I introduce the history and the current situation of our individual income tax, review the current status of research in this field, and explain the significance of the study on the tax rate. Next, I introduce the basic theory, design a virtual table of tax rate according to the basic form of the individual income tax rate, calculate the correlation functions, discuss the method to analyze the individual income tax, and use these tools to make a systematic analysis of our current individual income tax rate. In addition, I also show the experience of foreign states by giving a brief introduction of the individual income tax rate in the United States, Brazil, Holland and Russia. Finally, I put forward principles and my suggestions on the reform of the individual income tax rate, and design a tax rate for the following reform.The innovation of this paper lies in the introduction of the analysis method using functions. By research on correlation functions of the individual income tax rate, such as the functions of marginal rate, the actual tax burden, I analyze the characteristics and problems of the current tax rate, and provide an important reference for the reform of the individual income tax rate.