The Research Of Personal Income Tax By Household Income At The Present Stage

This thesis states from the original of individual income tax,elaborates the importance of individual income tax in a nation’s fiscalrevenue. Currently there are three main types of individual income taxsystem: comprehensive tax system, classification system, combination ofcomprehensive and classification tax system. China is implementing theclassification system, The United States levies the tax by thecomprehensive system, and most other countries use the combination ofcomprehensive and classification of tax system to collect individualincome tax.Chinese classification individual income tax system has manydefects. These defects are mainly embodied that the individual incometax has evolved into "wage and salary income tax". Classification taxsystem does not reach its purpose of “levying the rich to help the poor”.These people who have only single wage or salary income source burdenthe heaviest individual income tax.This paper analyzes the necessity of the individual income tax byhousehold income, and demonstrates the feasibility of tax collection by family. From the actual situation in China, the thesis discusses in depthabout superiority and the barrier of Chinese introduction of individualincome tax collection by family income.Finally, this paper believes that at present levying personal incometax by household in China is not only necessary but also feasible. Fairtax can redistribute the wealth from the rich to the poor and play the roleof social stabilizer.