Research On Improving The Individual Income Tax Law Under The Principle Of Ability To Pay

Individual income tax law is the basis of individual income tax, which is directlyrelated to individual income tax burden of the taxpayers. It is a law that is adhering tothe distributive justice, and safeguards the distribution justice and order of thepersonal income tax burden. Individual income tax law in our country has a history ofmore than30years, and it has played a important role in the adjustment of individualincome gap, and the fair distribution of individual income tax burden. However,facing the expansion of income gap in the reality, it fails to well play its function ofregulating income gap and realize the tax revenue fairness. At a certain extent, therules of it deviates from the spirit of the principle of ability to pay, and violates the taxfairness requirements in some aspects. Therefore, under the guidance of the principleof ability to pay, we can analyze the defects of individual income tax law for fairdistribution of tax burden, and provide guidance for the improvement of theindividual income tax law, and provide guidance for the improvement of individualincome tax law.In addition to the introduction, the paper is divided into six parts.The first part is the issues raised. This part starts from the legislation history ofthe individual income tax and the social background of the expansion of socialinequality, puts forward the rules of individual income tax law has the shortage in thefair distribution of tax burden from the practical and normative perspective, andindividual income tax law can realize the substantive fairness of the tax burden underthe guidance of the principle of ability to pay.The second part is the analysis of correlation between the principle of ability topay and the individual income tax law. Firstly, it reveals the connotation of theprinciple of ability through introducing the differences of the other principle oftaxation, and fully interprets the basic requirements of the principle of ability to pay.Secondly, it analyzes the correlation between the principle of ability to pay and theindividual income tax law, highlights that the individual income tax law fully fits the basic requirements of the principle of ability to pay. Finally, it illustrates theeffectiveness of the principle of ability to pay to the individual income tax law,namely, guiding the individual income tax, keeping away the excessive levy ofindividual income tax, and ensuring the equitable distribution of individual incometax.The third part is the defects in the rules of the current individual income tax law.Under the guidance of the principle of ability to pay, it analyzes the inadequate of thefair distribution of individual income from four aspects, which are the taxation mode,tax unit, tax rate, as well as the expense deduction system.The fourth part is the investigation and reference of the extraterritorial individualincome tax law. It investigates the individual income tax law of America, Japan, andthe German respectively, which mainly inspects aspects of the taxation mode, tax unit,tax rate, and the expense deduction system, and then learns from experience of them.The fifth part is the investigation of the reform path of the combination of thecomprehensive tax system and the family taxation system. This part is based on theanalysis of the inadequate of the rules of individual income tax law. Explain themanner of the combination of the comprehensive tax system and the family taxationsystem, perfect the individual income tax law from four aspects, which are thetaxation mode, tax unit, tax rate, and the expense deduction system.The sixth part is the conclusion. Our current individual income tax law’ tax mode,tax subject, tax rate structure and the expense deduction system have failed to fullyrealize requirements of the principle of ability to pay for fair tax burden. Therefore, itshould be improved the taxation mode, tax unit, tax rate, and the expense deductionsystem under the guidance of the principle of ability to pay.