The Classification And Comprehensive Taxation In The Personal Income Tax System From The Perspective Of The Balanced Development Of Regional Economic

Since the reform and opening up, macro economy in our country is rapidly developing, and regional economy presents a non-equilibrium development situation which is particularly prominent between East Central and Western Regions. This phenomenon deviates from the current concept of coordinated development and attracts academics and practitioners to pay great attention to the balance of development of regional economy. As the personal income tax has strong income distribution function, the personal income tax becomes an important measure to solve the unbalanced development of regional economy. Our country’s personal income tax system which was established in the 1980 s, started relatively late. After five times revisions, there are still a lot of loopholes in the system. Therefore, the personal income tax system fails to adjust income distribution, and to narrow the gap between the incomes of residents. And it results in widening the gap between the rich and poor and leading to the tendency of unbalanced economic development. The core issue of this paper is to reform the personal income tax from the perspective of the balance of regional economic development.Besides introduction and conclusion part, this paper is divided into four parts.The first part introduces the basic theory related to this topic, including the meaning of the balanced development of regional economy and its affected factors, and the relationship between the personal income tax and the balanced development of regional economy.The second part analyzes our country’s personal income tax system which is not conducive to the balanced development of regional economy. Firstly, this section introduces the current tax classification in personal income tax system and its effects on the balanced development of regional economy. Secondly, this part analyses the personal income tax elements from the perspective of tax base, expense deduction standard, tax rate and tax preferential policy.The third part summarizes the foreign personal income tax systems which are aim at balancing the regional economic development. In the introduction of the foreign systems, this part evaluates the United States, France and other developed countries’ personal income tax system from the perspective of the scope of taxation model, tax deductions, tax rates and preferential policies. At the end of this part it gives suggestions for our country.The forth part discusses the tax classification and comprehensive in the personal income tax systems from the perspective of the balanced development of regional economic. Firstly, this part divides the geographical area of China. Based on this division, this part suggests to reforming the personal income tax systems from the view of the classification and comprehensive point. From the view of classification in personal income tax system, the legal measures should include establishing the dynamic classification and graded standard of expense deduction, simplifying the tax rate, and allowing the local government to determine the suitable personal income tax rate for local area, etc. From the view of comprehensive in personal income tax system, the legal measures should include giving some taxpayers identity of “blue declaration”, and raising the non-labor income tax rate, etc.