Research On The Perfection Of China's Personal Income Tax System Based On Rich People's Tax Collection And Management

The individual income tax law was first founded in England in 1799,after more than two centuries development and perfection, it has became one of the important means of the government to organize financial income,fair distribution of social wealth and adjust economic operation, and it has became one of the main taxes in many counties,China's personal income tax was levied relatively late,the current tax system is formed on the tax system reform in 1994,and in order to satisfy the need of social demand and economic development,in 2011,China's personal income tax is adjusted partly,including the expense deduction standard and tax rates,but the reform is not deeply.China's Gini coefficient closes to 0.5 in these years,there is a serious gap between the rich and the poor in our country,the personal income tax is a mean of income distribution. thus personal income tax's function of income distribution hasn't been full played. China's income of personal income tax is only 7 percent of it's total tax income,compared to some developed countries the rate is very low,and below the average of 93 developing countries.and China's GDP ranks second in the global countries,so the income of personal income tax has a lot chance to increase,personal income tax's function of conduct financial revenue hasn't been full played.Largely because the means of tax collection and administration in China is backward, the master of rich people's revenue is not in place,especially the hidden income of rich people lacks effective supervision, caused a lot of tax loss.Based on the personal income tax supervision condition of rich people,including the condition of different income,the condition of rich people declare personal income tax themselves,and the losing condition of personal income tax revenue,finding that China's personal income tax system is not perfect,there are problems in the declare system,the methods of tax supervision and so on.China's personal income tax system needs revolution urgently.this paper aimed to propose the revolution methods of China's personal income tax system refers to the successful experience of foreign counties and based on the condition of China's economy,including improve the tax master and collect methods,establishing the income supervision Mechanism,Regulating the mechanism of tax agency, putting through the tax number and so on,finally,establishing the classification and comprehensive connected tax system.