A Study On The Earned Income Tax Under The Individual Income Tax System In China

After the reform and opening up,Chinese economy has been developing rapidly,and it has rapidly become a world economic power.As the economy continues to grow,people's income also increase.The sources and forms of income also become varied.However,the problem that lies ahead of us is that the income gap of our residents is too large to become even more prominent.At this time,the demand for individual income tax to regulate the gap between the rich and the poor is more urgent.Although the proportion of individual income tax in our country increases with the increase of personal income tax,the proportion of the individual income tax is still lower.Therefore,the individual income tax cannot fully play the role of regulating the income gap.In China,the current taxation method is classified.In some cases,taxpayers are required to make their own declarations.Although this classification system facilitates expropriation,it tends to result in unfair taxation.For example,people with the same income will bear different tax burden because of different tax basis,tax rate and tax mode.In recent years,the academic community has conducted a lot of research on the problems of the classification income tax system,and also put forward a number of solutions,which laid a solid foundation for the reform of the individual income tax in China.As the shortcomings of the classification income taxsystem continue to show up,more and more calls for accelerating the pace of change from the classified system to a system combined with classification and synthesis are becoming more and more frequent.The individual income tax of our country has gone through four reforms.The focus of each reform is on the adjustment of the salary exemption amount,and it does not involve the reform of the tax model.Such a way of reform is only to reduce the tax burden of taxpayers in the short term,and to give full play to the regulation function of personal income tax is nothing but a drop in the bucket.There is no doubt that the income source and form of the residents in our country are becoming more and more diverse with the development of social productive forces,but the income of labor still occupies a considerable proportion in the income of the residents.According to the survey by the National Bureau of statistics,the number of labor forces in China in 2015 is 824 million people,and most of them still pay the salary as the main source of income,while some people with relatively low cultural and technical level are the only source of life.Therefore,it is of great practical significance for the realization of tax fairness and the construction of a harmonious society to study the problem of labor income tax and to reduce the burden of workers' tax burden.The main thread of this paper is to analyze the theory of labor income,to review the history of the development of labor income and to sort out the legislative provisions,and to analyze the existing problems of the current labor income by empirical analysis,and finally put forward some suggestions to improve the classification of the comprehensive income tax system.In the first part of this paper,the concept of labor income is defined first,and the category of labor income is defined as salary income,remuneration income and labor remuneration,and the tax basis of labor income is found in combination with the characteristics of labor income.Then we comb the legislative process and legal provisions of labor income in China,and get the current situation of labor income in China.The second part,based on the theory of the first part,summarizes the existing problems of labor income under the classified personal income tax system in Chinathrough examples and data analysis.For example,there is a phenomenon of unfair tax burden between three labor income items;the income tax of labor income itself is weighed by other income;the tax deduction standard stipulated in the tax law is not reasonable enough.The third part analyzes the feasibility of implementing the comprehensive tax system of labor income in our country,and draws on the practice of some foreign countries,and designs the comprehensive tax model of labor income from the three aspects of the scope of Taxation,the deduction of cost and the design of the tax rate,and finally,from the measures of collection and management and his supporting measures,the labor income of our country.Suggestions are made for tax management.