Policy Change Of Personal Income Tax In China

Personal income tax is an important part of taxation in China,which shows the function of raising government revenue and adjusting the distribution of residents'income.Personal income tax is regarded as the tool for government's macro control.From 1980 onwards,with the development of society economic environment and residents' income,personal income tax system is well improved after six reforms,which is positive on improving the quality of life and promoting economic growth.It is of great significance to research the personal income tax for that the policy analysis on the reforms of personal income tax could better understand the internal thrust and external impact of the policy.From the perspective of public management,the changes of individual income tax policy could be interpreted in three major areas:cause,effect and change process.The results could be used as the basis of personal income tax reform and help to perfect personal income tax system in China.In the present study,the changes of personal income tax policy was analyzed based on Punctuated Equilibrium Theory.The theory provides reasonable analytical approach on policy change through the analysis of policy balance discontinuity and abrupt change,avoiding the disadvantages of progressive model theory.From the review of the development history of personal income tax policy,the change conforms to the rules of Punctuated Equilibrium Theory and the core views of the discontinuous period and the equilibrium period.To our best knowledge,the present study firstly applied the Punctuated Equilibrium Theory to analyze the change of personal income tax policy.The suggestion for improving the personal income tax policy was proposed based on the development tendency and existing problems of the current policy.Furthermore,the paper also discussed the variation trend of the personal income tax policy in the future.Firstly,the present study gave the study background and significance.After the review of the literatures at home and abroad on this topic,the innovation and the insufficiencies was presented.Furthermore,the theoretical grounding of the personal income tax reform and Punctuated Equilibrium Theory was expounded.The rise,development,and related concept of the Punctuated Equilibrium Theory were discussed,and then further to try to revise the Punctuated Equilibrium Theory based on the policy system of China.For personal income tax reform,the definition,feature,basic theory of tax priority,functions and their influencing factors were all explained.According to the statistics of individual income tax,the current situation of personal income tax systemwas analyzed.Finally,the Punctuated Equilibrium Theory was applied to give the analysis on the change of personal income tax policy.In the present study,the change of personal income tax policy was divided into six stages,and the agent of every stage was analyzed by Punctuated Equilibrium Theory.The shortcomings of the current policy and the suggestion to perfect the policy was provided based on interviewing method.After theoretical analysis,the author calculated that the personal income tax policy will enter the balanced period,but it is still a process of punctuation and equilibrium from a long—term perspective.The non-authoritative decision participation system,governing concept and diversified decision-making mechanism should be taken seriously when analyzing the policy change.