The Influence Factors Of Personal Income Tax Evolution And The Revelation To China

Britain introduced personal income tax with a modern meaning for the first time in 1978.Up to now,personal income tax has developed into the main tax in many countries and regions and played an important role in raising fiscal revenue and adjusting income distribution.From temporary levy to fixed levy and to become the main tax in tax system structure,the tracks of personal income tax development have many commonalities and differences between different countries.This is the result of combined action of many factors.Since the reform and opening,personal income tax has been marginalized for 40 years.The proportion of personal income tax revenue to total tax revenue has always been at a low level.China's economic and social conditions have taken place significant changes,but the personal income tax reform is relatively backward.Current personal income tax system cannot adapt to the external environment,leading to weakened function of personal income tax.To analyze the influencing factors of personal income tax change and how they work is of great importance to guide the direction of the personal income tax reform in China.Based on the literature review at home and abroad,this article divides influencing factors into four categories:economic factors,political factors,social and cultural factors and happenstance,and analyzes the elaborate types of these factors and their mechanism of action.Secondly,respectively presenting the history of the personal income tax change in developed countries and transitional countries from the perspective of history.To sum up,objective economic condition is the foundation for the development of personal income tax,and subjective policy orientation is the driving force to make personal income tax constantly adjusting and optimizing to adapt to the change of objective economic conditions.Then,developing a measurement model including nine indicators such as economic development level,government spending,tax collection and administration level and so on to qualitatively analyzing the influencing factors.Adopting the robust estimation of national and temporal clustering based on the bidirectional fixed effects model.The samples contain 39 countries in the world from 1995 to 2016.Finally,analyzing the conflicts between economic and social status and current tax system in China,and put forward three suggestions based on the constraint analysis of influencing factors:divergence administration,reasonable design of taxation elements and to improve the level of collection and management.