Research On The Mode Of Individual Income Tax In China

As a direct tax,individual income tax plays an increasingly important role in adjusting the income distribution gap and promoting social stability and harmony.Subsequently,the society has high expectations for individual income tax to fully demonstrate the fair value and realize the fair tax burden.Individual income tax taxation model is also in the warm attention and expectations of continuous exploration and progress from classified income taxation to comprehensive income taxation or classified comprehensive income taxation evolution.Since the first individual income tax law was promulgated in 1980,for quite a long time,China has implemented the classified income tax model.With the rapid development of China's economy and society,the overall income level of residents is constantly improving,and the source of income is more diversified.Along with this,the problems of unfair tax burden and tax loss are increasingly prominent.The reason is that the natural defect of classified income tax model is one of the key factors.In order to solve this problem from the system level,under the guidance of general secretary Xi Jinping's "people centered" concept,after extensive research and discussion by academic circles and government functional departments,seventh personal income tax laws were revised in 2018,and a taxonomy combined with classification and synthesis was adopted.This is an important manifestation of the modernization of national governance system and governance capacity.Its advantage is that it can better reflect the principle of fair tax burden and quantitative burden,and the regulating function of personal income tax to narrow the gap between the rich and the poor is more obvious.The inadequacy is that the revision is mainly from the legislative form of the tax model reform,the form is greater than the essence,is still in the preliminary stage.In order to fully demonstrate the function of individual income tax in adjusting income gap and fair tax burden,it is necessary to carry out deep-seated reform in the mode of classified comprehensive tax.From the perspective of tax equity,this paper intends to examine the reform process of personal income tax in China,starting from the level of legislation,tax system elements and supporting systems,and to make an assumption of system optimization,so as to provide a meaningful reference for the further reform of personal income tax system in China.This paper consists of six parts.In addition to the introduction and conclusion,the main contents of the four parts are as follows:The first part mainly starts with the three kinds of Taxation modes which are widely used and mature in the world,analyzes the basic theories and main characteristics of them respectively,and analyzes the defects and deficiencies of the three kinds of Taxation modes one by one.On this basis,from the perspective of fair value and efficiency value,the functional evaluation of the three kinds of Taxation modes is carried out in order to provide direction for our country's individual income tax model choices.In the second part,based on the concept of "learning from the past and the present",the author reviews the 40 years' development of China's personal income tax system,divides the development of China's personal income tax system into three stages based on the substantial and deep-seated reform of the system,and analyzes the characteristics of different development stages.The third part mainly analyzes the seventh revised personal income tax system in China,and summarizes six problems to be improved from the perspective of adjusting the gap between the rich and the poor and the tax burden equity.Through the analysis of these problems,it points out the limitations and shortcomings of the current "small comprehensive + large classification" comprehensive tax model in realizing the tax burden equity in order to advocate the establishment of "big comprehensive + small classification" comprehensive income tax model to provide theoretical support.The last part of the text clearly points out that it is the main direction of the reform of the personal income tax system to establish the classified comprehensive income tax mode of "big comprehensive + small classification",and proposes the reform path from the legislative level,tax system element level and supporting system level,that is,to establish and improve the relevant legal system of personal income tax,optimize the design of personal income tax system element.We will establish a supporting system for personal income tax.In addition,this paper fully realizes that the reform of personal income tax is a complex and systematic project,and points out that the reform should be implemented step by step and perfected step by step in combination with China's national conditions and the reality of economic and social development,thus enhancing the scientificity and feasibility of the proposed reform path.