Strengthen The Functions Of Personal Income Tax Revenue Allocation Study

Since the reform and opening up, China’s economy continued to grow rapidly, rising strength of the national economy, while the gap between the residents is also expanding the emergence of wealth polarization trend. Because the gap is the failure of the market mechanism itself in the field, the government needs to ease the gap between a pair of the "visible hand" to achieve. The rule of law in a civilized country, the use of taxation to narrow the gap between rich and poor is inevitable and effective choice. Based on our current tax system, to analyze how governments use tax adjustment gap between rich and poor. In terms of tax revenues from direct taxes paid by individuals only personal income tax, personal income tax through the use of progressive tax on the taxpayer’s adjusted income; involved in paying taxes have travel tax, property tax, vehicle purchase tax, stamp duty, deed etc., which is taxpayer property taxes and certain behavior can be adjusted. From the aspect of tax expenditures, the government mainly through certain projects to give tax breaks to take care, to increase the real income of low-income people. In our tax system, personal income tax adjustment of income distribution as the most effective tool.This paper explains the mechanism of personal income tax adjustment of income distribution, the use of historical data analysis to adjust the effect of personal income tax on income distribution play, discover personal income tax adjustment of income distribution capability weakened fact exist; secondly from the scope of taxation, taxation model, rate structure, the cost of the standard deduction, tax relief incentives, tax returns analyzes the main problems of the current system and the existence of personal income tax collection and management aspects of; a detailed analysis again the United States, South Korea, India, the personal income tax and personal income tax system overview of income distribution in various countries Moderating Effect of process played; finally Lessons from Other Countries personal income tax reform, based on China’s national policy recommendations for the reform of the personal income tax, personal income tax so that to achieve its proper function, really play a regulating income distribution and "Auto stabilizer "role.