Research On The Collection Pattern Conversion Of China’s Individual Income Tax

Individual income tax has already been generally imposed by the majority of the countries around the world, and become one of the dominant taxes in many developed countries. It is playing an important and irreplaceable role in both collecting fiscal revenues and income redistribution. The collection pattern of individual income tax includes the classifying collection pattern, the comprehensive collection pattern, and the classifying-comprehensive collection pattern. So far, the classifying collection pattern is carried out in China.China’s individual income tax revenue maintains a high-speed growth. However, its proportion in total tax revenue is still low.The internal factors of individual income tax make it difficult to fully play its role in economic life. The individual income tax is required further reform by both the development of tax system and expectations of society. And the reform should not be limited to the minor modifications of the expenses deduction of wages and salaries.This paper reviews the development of China’s individual income tax, and analyses the problems of the current classifying tax system. On the basis of studying the individual income tax system of the United States of America and the Taiwan area, this paper puts forward that China’s individual income tax should be converted to the comprehensive collection pattern By analyzing the challenges and supports of the tax system reform, this paper designs the main content of the comprehensive individual income tax system, which includes the couple joint tax declaration. Finally, it proposes to improve the supporting system to suit and promote the reform.