The Research On Improving Individual Income Tax Reform

On November15，2013，the《CPC Central Committee on Major Issues ofcomprehensive deepening reform》was released. It pointed out the need to improvethe tax system，to deepen the reform of the tax system，to improve the local taxsystem，to gradually increase the proportion of direct taxes，and to graduallyestablish a comprehensive individual income tax system with a combination ofclassification. With the acceleration of the overall tax system in China’s reformprocess，the individual income tax reform measures are also ready to come.This article conducts research on the realistic problems of China’s idividualincome tax reform，which takes Changchun as an example. The individual incometax of Changchun was established in1994，basing on the national tax reform. In thepast twenty years，with the rapid development of the regional economy and thecontinuous improvement of the household income of Changchun，the scale of theindividual income tax income has been a huge growth，which has made somecontribution to the local finance of Changchun. Looking at the local tax data ofrecent years, the individual income tax revenue in Changchun occupies a very lowposition in its level tax revenue，and it is maintained at a level of3%-4%for years，making a growing gap between the income scale compared with the other main taxes.Not only is the function of adjusting the income gap weakened，and the local taxcollection is also adversely be affected. Therefore，we should conduct in-depth studyof the individual income tax situation of Changchun，identify problems and considerappropriate countermeasures basing on the condition of our country.This article is divided into a total of five parts. PartⅠdescribes the backgroundand significance, literature review and the relevant theoretical basis. Part Ⅱexplains the tax situation and characteristics of Changchun by using the real data，and grasps the overall analysis of individual income tax of Changchun. Through the detailed description of the second portion，Part Ⅲ identifies the main problemsabout individual income tax in Changchun，they are income scale, functioning andcollection efficiency. Part IV analyzes and identifies the specific reasons for everyproblem according to the existence of various problems of the third part. Part V putsforward some countermeasures and suggestions to improve and perfect theindividual income tax by describing and analyzing the more than four parts，it isbased on China’s actual situation and also fully draws on the useful experience of taxreform in other countries.