Study On The Reform Of Personal Income Tax System From The Perspective Of Welfare Security

In 2014, China began a new round of fiscal and tax system reform, which has an important task that improve the taxation system. The current personal income tax law of our country is based on the personal income tax law revised in 1993, and has experienced five amendments in 1999,2005,2007,2008 and 2011. The five amendments, in general, only the adjustment of the individual income tax law in 1993, did not involve substantive tax reform. With the development of social and economic, the current personal income tax law has exposed more and more problems, and has been unable to meet the needs of modern society. Especially entering the 21st Century, people’s material living standard has greatly improved, and the pursuit of spiritual life, human rights, social equity and social welfare is more and more strong. Since reform and opening up, at the same time of pursuiting efficiency, China’s widening gap between the rich and the poor, unfair distribution and other issues are becoming more and more obvious. In this case, seizing the opportunity of the reform of personal income tax in China, and based on the important role of social welfare to promote social fairness and justice and to protect the people’s livelihood, this article will study the reform of China’s personal income tax system and how to fully reflect the welfare security in the system and start from four aspects that the choice of taxation mode, the choice of tax unit, the perfection of the tax reductions and exemptions, the design of the tax rate. By studying the relationship between the individual income tax system and social welfare, and how to realize the welfare security in the way of personal income tax, I hope this will be helpful to the reform of the personal income tax system in China.In addition to the introduction and conclusion, this paper includes four parts:The first part is the meaning and the value of social welfare of individual income tax. Starting from sketching the rise of the individual income tax, this part will introduce the contents of individual income tax law, mainly from five aspects that taxation mode, taxpayer, tax object, tax reductions and exemptions, tax rate, in addition, this part will explore the internal relation between the personal income tax and social welfare.The second part is the development of the individual income tax system in China and the deficiency of the welfare guarantee. Firstly, the paper introduces the initial establishment and development of individual income tax system in China, and then analyzes the deficiency of welfare security in the individual income tax system in China according to the current situation of the individual income tax law.The third part is the foreign experience of the individual income tax law to promote the social welfare. Taking the individual income tax system as the research object and starting from four aspects that taxation mode, taxpayer, tax reductions and exemptions, tax rate, this part will study the realization of the promotion of social welfare in the foreign individual income tax system.The fourth part is the path to the realization of the welfare security in China’s individual income tax system reform. Based on the research results of the first three parts, this part will put forward how to reform the personal income tax system in our country to realize the Welfare Security from four aspects that the choice of taxation mode, the choice of tax unit, the perfection of the tax reductions and exemptions, the design of the tax rate.In modern society, the pursuit of social welfare is a general trend, social welfare has an important role in promoting social fairness and justice and the protection of social people’s livelihood. As a kind of tax which has great potential to increase revenue, personal income tax is closely related to social welfare which is largely dependent on fiscal expenditure in modern society. If China’s ongoing reform of personal income tax system can take into account the social welfare factors and can carefully weigh the tax model, tax units, tax reductions and exemptions, tax rate design and other factors in order to achieve the perfect effect, then it will make a great contribution to the construction of social economy in our country in a long time, and maintain a healthy development in modern society.