Reflections On The Integration Of Wage And Salary Income Of Personal Income Tax In China

Since 2008,the personal income tax in China has been ranked in the fifth place,and has also become one of the taxes that called for urgently reform in China in recent years.The current levy system of personal income tax in China is a typical classified income tax system,because of the simple calculation and the the classification of each collection and payment,this collection approach provides more convenience to tax bureau.But with the development of our country's economy and the improvement of taxpayers' awareness,the details of the problems become more prominent,such as the tax base scope is too narrow,the design of taxes and expense deduction is unreasonable,etc.,it can not give full play to the three functions of tax revenue.Looking from the current tax rate structure,the notch span which is not reasonable leads the income to grow faster than tax.The average tax rate curve's degree of progressive shows that personal income tax on the adjustment of high income is a little weak.Review the previous reform of personal income tax in china,adjustment measures are constantly on the rise of the amount payroll exempted.This just temporarily reduce the taxes of working-class pain on one hand,on the other hand the amount of the previous adjustments has little effect on adjusting the income distribution gap.The reasons of the slowly process of china's personal income tax reform is that the reform of our country needs the spirit of exploring,also need to take the special situation of our country into account.This paper explores a transitional path of the reform of personal income tax,from the personal income of wages and salaries and labor remuneration income,analyzing the existing problems in the current way of collection,demonstrating the necessity and rationality of the integration of this two kind of labor income,using the latest relevant data indicators,based on the fitting of the annual income distribution of urban workers in china to design the rate table.The ultimate aim is to make other labor income to the scope of comprehensive reference.